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

April 1 Tanner invests $80,000 cash along with office equipment valued at $26,000 in the company.

2 The company prepaid $9,000 cash for twelve months’ rent for office space. (Hint: Debit Prepaid Rent for $9,000.)

3 The company made credit purchases for $8,000 in office equipment and $3,600 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 $6,000 project for a client, who must pay within 30 days.

13 The company paid $11,600 cash to settle the account payable created on April 3.

19 The company paid $2,400 cash for the premium on a 12-month insurance policy. (Debit Prepaid Insurance for $2,400.)

22 The company received $4,400 cash as partial payment for the work completed on April 9.

25 The company completed work for another client for $2,890 on credit.

28 Tanner withdrew $5,500 cash from the company for personal use.

29 The company purchased $600 of additional office supplies on credit.

30 The company paid $435 cash for this month’s utility bill.

Required

1. Prepare general journal entries to record these transactions (use account titles listed in part 2).

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); K. Tanner, Capital (301); K. Tanner, Withdrawals (302); Services Revenue (403); and Utilities Expense (690). Post journal entries from part 1 to the ledger accounts and enter the balance after each posting.

3. Prepare a trial balance as of April 30.