Reference no: EM131528130

Question: At the beginning of April, Brooke Gable launched a custom computer solutions company called Softways. The company had the following transactions during April.

a. Brooke Gable invested $45,000 cash, office equipment with a value of $4,500, and $28,000 of computer equipment in the company.

b. The company purchased land worth $24,000 for an office by paying $4,800 cash and signing a long-term note payable for $19,200.

c. The company purchased a portable building with $21,000 cash and moved it onto the land acquired in b.

d. The company paid $6,600 cash for the premium on a two-year insurance policy.

e. The company provided services to a client and immediately collected $3,200 cash.

f. The company purchased $3,500 of additional computer equipment by paying $700 cash and signing a long-term note payable for $2,800.

g. The company completed $3,750 of services for a client. This amount is to be received within 30 days.

h. The company purchased $750 of additional office equipment on credit.

i. The company completed client services for $9,200 on credit.

j. The company received a bill for rent of a computer testing device that was used on a recently completed job. The $320 rent cost must be paid within 30 days.

k. The company collected $4,600 cash in partial payment from the client described in transaction i.

l. The company paid $1,600 cash for wages to an assistant.

m. The company paid $750 cash to settle the payable created in transaction h.

n. The company paid $425 cash for minor maintenance of the company's computer equipment.

o. B. Gable withdrew $3,875 cash from the company for personal use.

p. The company paid $1,600 cash for wages to an assistant.

q. The company paid $800 cash for advertisements in the local newspaper during April.

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); Prepaid Insurance (108); Office Equipment (163); Computer Equipment (164); Building (170); Land (172); Accounts Payable (201); Notes Payable (250); B. Gable, Capital (301); B. Gable, Withdrawals (302); Fees Earned (402); Wages Expense (601); Computer Rental Expense (602); Advertising Expense (603); and Repairs Expense (604). Post the journal entries from part 1 to the accounts and enter the balance after each posting.

3. Prepare a trial balance as of the end of April.