Refer to the trial balance in Exercise 4-8 and prepare a balance sheet for Stradling Con...

Refer to the trial balance in Exercise 4-8 and prepare a balance sheet for Stradling Consultants as of the end of the month. The ending balance in the owner’s capital account is $112,955.

Exercise 4-8

After posting the journal entries from Exercise 4-7 to general ledger accounts, Stradling Consultants reports the

following trial balance.

Required

1. Prepare an income statement for the month.

2. Prepare a statement of owner’s equity for the month.

Exercise 4-7

Bonnie Stradling opened a computer consulting business called Stradling Consultants and completed the following transactions in the first month of operations.

April 1 Bonnie 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 for $9,000.)

3 Made credit purchases for $8,000 in office equipment and $3,600 in office supplies. Payment

is due within 10 days.

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 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 Bonnie 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

Prepare general journal entries to record these transactions (use the account titles listed below). Cash (101); Accounts Receivable (106); Office Supplies (124); Prepaid Insurance (128); Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); B. Stradling, Capital (301); B. Stradling, Withdrawals (302); Services Revenue (403); and Utilities Expense (690).