Reference no: EM132483960

Elizabeth Wong has strong problem-solving skills and loves to work with people. After becoming a Certified Human Resources Professional (CHRP) and working for several companies, she opened her own business, HR Solutions. She completed the following transactions during May 2017:

May 1 Invested $75,000 in cash and office equipment that had a fair value of $48,000 In the business.

1 Prepaid $14,400 cash for three months' rent for an office.

2 Made credit purchases of office equipment for $24,000 and office supplies for $4,800.

6 Completed a report on hiring solutions for a client and collected $8,000 cash.

Completed a $16,000 project implementing a training program for a client, who will pay within 30 days.

10 Paid half of the account payable created on May 2.

19 Paid $7.500 cash for the annual premium on an insurance policy.

22 Received $12,800 as partial payment for the work completed on May q.

25 Developed a performance review process for another client for $5,280 on credit.

25 Paid wages for May totalling $34,000.

31 Withdrew $5,000 cash from the business to take a trip to Paris In June.

31 Purchased $1,600 of additional office supplies on credit.

31 Paid $1,400 for the month's utility bill.

Required

Question 1. Prepare journal entries to record the transactions.

Question 2. Set up the following accounts (use the balance column format or T-accounts):

Cash (101);

Accounts Receivable (106);

Office Supplies (124);

Prepaid Insurance (128);

Prepaid Rent (131);

Office Equipment (163);

Accounts Payable (201);

Elizabeth Wong, Capital (301);

Elizabeth Wong, Withdrawals (302);

Services Revenue (403);

Wages Expense (623); and

Utilities Expense (690).

Question 3. Post the entries to the accounts and enter the balance after each posting.

Question 4. Prepare a trial balance at May 31, 2017.