Kendis Lanelle opened a computer consulting business called Viva Consultants and completed the following transactions in the first month of operations.
April 1 Lanelle invested $80,000 cash along with office equipment valued at $26,000 in the business.
2 Prepaid $9,000 cash for 12 months’ rent for office space. (Hint: Debit Prepaid Rent (an asset)
for $9,000.)
3 Made credit purchases for $8,000 in office equipment and $3,600 in office supplies.
6 Completed services for a client and immediately received $4,000 cash.
9 Completed a $6,000 project for a client, who must pay within 30 days.
13 Paid $11,600 cash to settle the account payable created on April 3.
19 Paid $2,400 cash for the premium on a 12-month insurance policy. (Hint: Debit Prepaid
Insurance (an asset) for $2,400.)
22 Received $4,400 cash as partial payment for the work completed on April 9.
25 Completed work for another client for $2,890 on credit.
28 Lanelle withdrew $5,500 cash for personal use.
29 Purchased $600 of additional office supplies on credit.
30 Paid $435 cash for this month’s utility bill.
Required
1. Open the following T-accounts—Cash; Accounts Receivable; Office Supplies; Prepaid Insurance;
Prepaid Rent; Office Equipment; Accounts Payable; K. Lanelle, Capital; K. Lanelle, Withdrawals;
Services Revenue; and Utilities Expense. Post the transactions in the T-accounts.
2. Prepare a trial balance as of April 30.
3. Prepare an income statement for the month of April.
4. Prepare a statement of owner’s equity for the month of April.
5. Prepare a balance sheet as of April 30.
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