Gary Bauer opens a computer consulting business called Technology Consultants and completes the following transactions in April.

April 1 Bauer invested $100,000 cash along with $24,000 in office equipment in the company.

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

3 The company made credit purchases of office equipment for $12,000 and office supplies for $2,400. Payment is due within 10 days.

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

9 The company completed an $8,000 project for a client, who must pay within 30 days.

13 The company paid $14,400 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 $6,400 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 Bauer withdrew $6,200 cash from the company for personal use.

29 The company purchased $800 of additional office supplies on credit.

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

Required

1. Prepare general journal entries to record these transactions.

2. Open the following ledger accounts — their account numbers are in parentheses (use the balance column format): Cash (101); Accounts Receivable (106); Office Supplies (124); Prepaid Insurance (128); Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); G. Bauer, Capital (301); G. Bauer, Withdrawals (302); Services Revenue (403); and Utilities Expense (690). Post the journal entries from part 1 to the ledger accounts and enter the balance after each posting.

3. Prepare a trial balance as of the end of April.