Karla Tanner opens a Web consulting business called Linkworksand completes the following transactions in its first month ofoperations.
April 1 Tanner invested $130,000 cash along with officeequipment valued at $31,200 in the company.
2 The company prepaid $7,200 cash for twelve months’rent for office space. (Hint: Debit Prepaid Rent for $7,200.)
3 The company made credit purchases for $15,600 inoffice equipment and $3,120 in office supplies. Payment is duewithin 10 days.
6 The company completed services for a client andimmediately received $2,000 cash.
9 The company completed a $10,400 project for aclient, who must pay within 30 days.
13 The company paid $18,720 cash to settle theaccount payable created on April 3.
19 The company paid $6,000 cash for the premium on a12-month insurance policy.
22 The company received $8,320 cash as partialpayment for the work completed on April 9.
25 The company completed work for another client for$2,640 on credit.
28 Tanner withdrew $6,200 cash from thecompany for personal use.
29 The company purchased $1,040 of additionaloffice supplies on credit.
30 The company paid $700 cash for this month’sutility bill.
