mith AC Services opens for business and completes these transactions in April.

April1John Smith, the owner, invests $38,000 cash along with office equipment valued at $15,000 in the company as company capital.
 2The company prepaid $9,000 cash for 12 months’ rent for office space. 
 4The company made credit purchases for $8,000 in office equipment and $2,400 in office supplies. Payment is due within 10 days.
 8The company completed work for a client and immediately received $3,280 cash.
 12The company completed a $15,400 project for a client, who must pay within 30 days.
 13The company paid $10,400 cash to settle the payable created on September 4.
 19The company paid $1,900 cash for the premium on an 18-month insurance policy. 
 22The company received $7,700 cash as partial payment for the work completed on September 12.
 24The company completed work for another client for $2,100 on credit.
 28The company paid John Smith $5,300 cash recorded as an owner withdrawal.
 29The company purchased $550 of additional office supplies on credit.
 30The company paid $860 cash for this month’s utility bill.

Instructions

  1. Prepare general journal entries to record these transactions using the accounts listed in Step 2.
  2. Open the following ledger accounts—their account numbers are in parentheses: Cash (101); Accounts Receivable (106); Office Supplies (124); Prepaid Insurance (128); Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); John Smith, Capital (307); John Smith, Withdrawals (319); Service Fees Earned (401); and Utilities Expense (690). 
  3. Post journal entries from Step 1 to the ledger accounts and enter the balance after each posting.
  4. Prepare a trial balance as of the end of April.