Karla Tanner opened a Web consulting business called Linkworksand completed the following transactions in its first month ofoperations.
| April | | 1 | | Tanner invested $110,000 cash along with office equipmentvalued at $26,400 in the company in exchange for common stock. |
| | 2 | | The company prepaid $7,200 cash for 12 months’ rent for officespace. Hint: Debit Prepaid Rent for $7,200. |
| | 3 | | The company made credit purchases for $13,200 in officeequipment and $2,640 in office supplies. Payment is due within 10days. |
| | 6 | | The company completed services for a client and immediatelyreceived $2,000 cash. |
| | 9 | | The company completed a $8,800 project for a client, who mustpay within 30 days. |
| | 13 | | The company paid $15,840 cash to settle the account payablecreated on April 3. |
| | 19 | | The company paid $6,000 cash for the premium on a 12-monthinsurance policy. Hint: Debit Prepaid Insurance for$6,000. |
| | 22 | | The company received $7,040 cash as partial payment for thework completed on April 9. |
| | 25 | | The company completed work for another client for $2,640 oncredit. |
| | | 28 | | The company paid a $6,200 cash dividend. |
| | | 29 | | The company purchased $880 of additional office supplies oncredit. |
| | | 30 | | The company paid $700 cash for this month’s utility bill. |
Required:
1. Prepare general journal entries to record thesetransactions using the following titles: Cash (101); AccountsReceivable (106); Office Supplies (124); Prepaid Insurance (128);Prepaid Rent (131); Office Equipment (163); Accounts Payable (201);Common Stock (307); Dividends (319); Services Revenue (403); andUtilities Expense (690).
2. Post the journal entries from part 1 to theledger accounts.
3. Prepare a trial balance as of April 30.
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