Problem 2-4A Preparing and posting journal entries; preparing a trial balance L.O. C3, C4, A1, P1, P2 Santo Birch opens a Web consulting business called Show-Me-the-Money and completes the following transactions in its first month of operations.

Problem 2-4A Preparing and posting journal entries; preparing a trial balance L.O. C3, C4, A1, P1, P2

Santo Birch opens a Web consulting business called Show-Me-the-Money and completes the following transactions in its first month of operations.

March 1	Birch invests $150,000 cash along with office equipment valued at $22,000 in the company in exchange for common stock.
2	The company prepaid $6,000 cash for twelve months' rent for office space. (Hint: Debit Prepaid Rent for $6,000.)
3	The company made credit purchases for $3,000 in office equipment and $1,200 in office supplies. Payment is due within 10 days.
6	The company completed services for a client and immediately received $4,000 cash.
9	The company completed a $7,500 project for a client, who must pay within 30 days.
13	The company paid $4,200 cash to settle the account payable created on March 3.
19	The company paid $5,000 cash for the premium on a 12-month insurance policy. (Hint: Debit Prepaid Insurance for $5,000.)
22	The company received $3,500 cash as partial payment for the work completed on March 9.
25	The company completed work for another client for $3,820 on credit.
29	The company paid $5,100 cash for dividends.
30	The company purchased $600 of additional office supplies on credit.
31	The company paid $200 cash for this month's utility bill.

  

Required:
1.	Record these transactions using the following titles: Cash, Accounts Receivable, Office Supplies, Prepaid Insurance, Prepaid Rent, Office Equipment, Accounts Payable, Common Stock, Dividends, Services Revenue, and Utilities Expense. (Omit the "$" sign in your response.)

  

Date	General Journal	Debit	Credit
March 1	Cash
	Office equipment
	Common stock		172,000
2	Prepaid rent	6,000
	Cash		6,000
3	Office equipment
	Office supplies
	Accounts payable		4,200
6	Cash	4,000
	Services revenue		4,000
9	Accounts receivable	7,500
	Services revenue		7,500
13	Accounts payable	4,200
	Cash		4,200
19	Prepaid insurance	5,000
	Cash		5,000
22	Cash	3,500
	Accounts receivable		3,500
25	Accounts receivable	3,820
	Services revenue		3,820
29	Dividends	5,100
	Cash		5,100
30	Office supplies	600
	Accounts payable		600
31	Utilities expense	200
	Cash		200

  

2.

Open the ledger accounts for the account titles referred in part 1 and post the journal entries from part 1 to the ledger accounts and enter the balance after each posting. (Record the transactions in given order.Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values. Omit the "$" sign in your response.)

  

Cash
Date			Debit			Credit		Balance
March	1		150,000			0		150,000
	2		0			6,000		144,000
	6		4,000			0		148,000
	13		0			4,200		143,800
	19		0			5,000		138,800
	22		3,500			0		142,300
	29		0			5,100		137,200
	31		0			200		137,000

  

Accounts Receivable
Date			Debit			Credit		Balance
March	9		7,500			0		7,500
	22		0			3,500		4,000
	25		3,820			0		7,820

    

Office Supplies
Date			Debit			Credit		Balance
March	3		1,200			0		1,200
	30		600			0		1,800

  

Prepaid Insurance
Date			Debit			Credit		Balance
March	19		5,000			0		5,000

  

Prepaid Rent
Date			Debit			Credit		Balance
March	2		6,000			0		6,000

  

Office Equipment
Date			Debit			Credit		Balance
March	1		22,000			0		22,000
	3		3,000			0		25,000

  

Accounts Payable
Date			Debit			Credit		Balance
March	3		0			4,200		4,200
	13		4,200			0		0
	30		0			600		600

  

Common Stock
Date			Debit			Credit		Balance
March	1		0			172,000		172,000

  

Dividends
Date			Debit			Credit		Balance
March	29		5,100			0		5,100

  

Services Revenue
Date			Debit			Credit		Balance
March	6		0			4,000		4,000
	9		0			7,500		11,500
	25		0			3,820		15,320

  

Utilities Expense
Date			Debit			Credit		Balance
March	31		200			0		200

  

3.	Prepare a trial balance as of April 30. (The items in the Trial Balance should be grouped as follows: Assets, Liabilities, Equity, Revenues, and Expenses. Omit the "$" sign in your response.)

  

SHOW-ME-THE-MONEY CONSULTANTS Trial Balance March 31
	Debit	Credit
Cash	$ 137,000
Accounts receivable	7,820
Office supplies
Prepaid insurance
Prepaid rent
Office equipment
Accounts payable		$ 600
Common stock		172,000
Dividends	5,100
Services revenue		15,320
Utilities expense	200
Totals	$ 187,920	$ 187,920