Question

Karla Tanner opens a Web consulting business called Linkworks and completes the following transactions in its first month of operations.
  

April 1 Tanner invested $130,000 cash along with office equipment valued at $31,200 in the company.

  2 The company prepaid $7,200 cash for twelve months’ rent for office space. (Hint: Debit Prepaid Rent for $7,200.)

  3 The company made credit purchases for $15,600 in office equipment and $3,120 in office supplies. Payment is due within 10 days.

  6 The company completed services for a client and immediately received $2,000 cash.

  9 The company completed a $10,400 project for a client, who must pay within 30 days.

  13 The company paid $18,720 cash to settle the account payable created on April 3.

  19 The company paid $6,000 cash for the premium on a 12-month insurance policy.

  22 The company received $8,320 cash as partial payment for the work completed on April 9.

  25 The company completed work for another client for $2,640 on credit.

   28 Tanner withdrew $6,200 cash from the company for personal use.

   29 The company purchased $1,040 of additional office supplies on credit.

   30 The company paid $700 cash for this month’s utility bill.

Answer 1

Date	General Journal	Debit	Credit
1-Apr	Cash	130,000
	Office equipment	31,200
	Karla Tanner, Capital		161,200
2-Apr	Prepaid rent	7,200
	Cash		7,200
3-Apr	Office equipment	15,600
	Office supplies	3,120
	Accounts payable		18,720
6-Apr	Cash	2,000
	Services revenue		2,000
9-Apr	Accounts receivable	10,400
	Services revenue		10,400
13-Apr	Accounts payable	18,720
	Cash		18,720
19-Apr	Prepaid insurance	6,000
	Cash		6,000
22-Apr	Cash	8,320
	Accounts receivable		8,320
25-Apr	Accounts receivable	2,640
	Services revenue		2,640
28-Apr	Karla Tanner, Withdrawals	6,200
	Cash		6,200
29-Apr	Office supplies	1040
	Accounts payable		1,040
30-Apr	Utilities expense	700
	Cash		700