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Problem 2-7A Preparing and posting journal entries; preparing a trial balance L03, 4, 5, @6 CHECK FIGURE: 4. Total Dr. = $176,230 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 2020 May 1 Invested $78,000 in cash and office equipment that had a fair value of $51.000 in the business. 1 Prepaid $15,300 cash for three months' rent for an office. 2 Made credit purchases of office equipment for $25.500 and office supplies for $5,100. 6 Completed a report on hiring solutions for a client and collected $8,300 cash. 9 Completed a $16,300 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 $7.800 cash for the annual premium on an insurance policy. 22 Received $13,100 as partial payment for the work completed on May 9. 25 Developed a performance review process for another client for $5.580 on credit. 25 Paid wages for May totalling S35,500. BI Withdrew $5,300 cash from the business to take a trip to Paris in June. 31 Purchased $1.750 of additional office supplies on credit. 31 Paid S1.430 for the month's utility bill. Required 1. Prepare journal entries to record the transactions. Use page I for the journal. 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 (16.21 Acounts Payable (201); Elizabeth Wong. FUME Capital (301): Elizabeth Wong, Withdrawals (302); Services Revenue (403): Wages Expense (623); and Utilities Expense (690). 3. Post the entries to the accounts and enter the balance after each posting. 4. Prepare a trial balance at May 31, 2020

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