Question

Help Problem 2-7A Preparing and posting journal entries; preparing a trial balance LO3, 4, 5, 6 Elizabeth Wong has strong problem-solving skills and loves to work with people. After becoming a Certified Human Resources Professional (CHRP) and working for several companies, she opened her own business, HR Solutions. She completed the following transactions during May 2020: May 1 Invested $81,000 in cash and office equipment that had a fair value of $54,000 in the business. 1 Prepaid $16,200 cash for three months' rent for an office. 2 Made credit purchases of office equipment for $27,000 and office supplies for $5,400. 6 Completed a report on hiring solutions for a client and collected $8,600 cash. 9 Completed a $16, 600 project implementing a training program for a dient, who will pay within 30 days. 10 Paid half of the account payable created on May 2. 19 Paid $8,100 cash for the annual premium on an insurance policy. 22 Received $13,400 as partial payment for the work completed on May 9. 25 Developed a performance review process for another client for $5,880 on credit. 25 Paid wages for May totalling $37,000. 31 withdrew $5,600 cash from the business to take a trip to Paris in June. 31 Purchased $1,900 of additional office supplies on credit. 31 Paid $1,460 for the month's utility bill. Required: 1. Prepare journal entries to record the transactions View transaction lint View journal entry worksheet Debit Credit General Journal Date No Prav 11 of 27 !!! Next >

Answer 1

No	Date	General Journal	Debit	Credit
1	May-01	Cash	81000
		Office equipment	54000
		Elizabeth Wong, capital		135000
		(To record capital invested)
2	1	Prepaid rent	16200
		Cash		16200
		(To record rent prepaid)
3	2	Office equipment	27000
		Office supplies	5400
		Accounts payable		32400
		(To record credit purchases)
4	6	Cash	8600
		Service revenue		8600
		(To record cash collected for services rendered)
5	9	Accounts receivable	16600
		Training revenue		16600
		(To record revenue earned on account)
6	10	Accounts payable (32400/2)	16200
		Cash		16200
		(To record payment on account)
7	19	Prepaid insurance	8100
		Cash		8100
		(To record annual premium paid)
8	22	Cash	13400
		Accounts receivable		13400
		(To record collection on account)
9	25	Accounts receivable	5880
		Service revenue		5880
		(To record service revenue earned)
10	25	Wages expense	37000
		Cash		37000
		(To record wages paid for May)
11	31	Elizabeth Wong, drawings	5600
		Cash		5600
		(To record cash withdrawn for personal use)
12	31	Office supplies	1900
		Accounts payable		1900
		(To record credit purchases)
13	31	Utilities expense	1460
		Cash		1460
		(To record payment of utility bill)