Lummus Management Services opens for business and completes these transactions in September.
Sept
| 1 | Rhonda Lummus, the owner, invests $28,000 cash along with office equipment valued at $25,000 in the company in exchange for common stock. |
| 2 | The company prepaid $10,500 cash for 12 months’ rent for office space. (Hint: Debit Prepaid Rent for $10,500.) |
| 4 | The company made credit purchases for $9,000 in office equipment and $1,200 in office supplies. Payment is due within 10 days. |
| 8 | The company completed work for a client and immediately received $2,600 cash. |
| 12 | The company completed a $13,400 project for a client, who must pay within 30 days. |
| 13 | The company paid $10,200 cash to settle the payable created on September 4. |
| 19 | The company paid $5,200 cash for the premium on an 18-month insurance policy. (Hint: Debit Prepaid Insurance for $5,200.) |
| 22 | The company received $7,800 cash as partial payment for the work completed on September 12. |
| 24 | The company completed work for another client for $1,900 on credit. |
| 28 | The company paid $5,300 cash for dividends. |
| 29 | The company purchased $1,700 of additional office supplies on credit. |
| 30 | The company paid $460 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); Common Stock (307); Dividends (319); Service Fees Earned (401); 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 the end of September.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.