WiCom Servicing completed these transactions during November 2020, its first month of operations:

Required

1. Prepare journal entries to record the transactions. Use general journal page 1.

2. Set up the following general ledger accounts (use the balance column format or T-accounts): Cash (101); Accounts Receivable (106); Office Supplies (124); Prepaid Insurance (128); Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); Tait Unger, Capital (301); Tait Unger, Withdrawals (302); Service Revenue (401); Wages Expense (680); and Utilities Expense (690).

3. Post the entries to the general ledger accounts, and enter the balance after each posting.

4. Prepare a trial balance at November 30, 2020.

Analysis Component: Is the November 29 purchase of office supplies recorded as a debit to an asset or an expense account? Explain.?

Transcribed Image Text:

Tait Unger, the owner, invested $62,000 cash and office equipment that had a fair value of $19,000 in the business. Nov. 2 Prepaid $21,000 cash for three months' rent for an office. Made credit purchases of used office equipment for $9,000 and office supplies for $1,650. 4 Completed work for a client and immediately received $5,200 cash. Completed a $4,800 project for a client, who will pay within 30 days. 12 Paid the account payable created on November 4. 13 Paid $3,750 cash as the annual premium on an insurance policy. 19 22 Received $2,000 as partial payment for the work completed on November 12. 24 28 Completed work for another client for $3,600 on credit. Withdrew $5,300 from the business for personal use. 29 Purchased $1,700 of additional office supplies on credit. Paid $19,000 in wages. Paid $1,650 for the month's utility bill. 30 30