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Preparing and posting general journal entries; preparing a trial balance.

CJG Management Services opens business and completes these transactions in November:

Nov. 1 Brenda Shaine, the owner, invested $30,000 cash along with $15,000 of office equipment in the business.
2 Prepaid $4,500 cash for six month’s rent for an office. (Hint: Debit Prepaid Rent for $4,500.)
4 Made credit purchases of office equipment for $2,500 and of office supplies for $600. Payment is due within 10 days.
8 Completed work for a client and immediately received $3,400 cash.
12 Completed a $10,200 project for a client, who must pay within 30 days.
13 Paid $3,100 cash to settle the account payable created on November 4.
19 Paid $1,800 cash for the premium on a 24-month insurance policy.
22 Received $5,300 cash as partial payment for the work completed on November 12.
24 Completed work for another client for $1,750 on credit.
28 Shaw withdrew $5,300 cash for personal use.
29 Purchases $249 of additional office supplies on credit.
30 Paid $531 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 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); B. Shaine, Capital (301); B. Shaine, Withdrawals (302); Services Revenue (403); and
Utilities Expenses (690). 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 this month’s operations.

Date Account Debit Credit


Nov.1 Cash 30000
Office Equipment 15000
Owners Investment 45000
Owner invested cash and equipment

2 Prepaid Rent 4500


Cash 4500
Invested cash for prepaid rent

4 Office Equipment 2500


Office Supplies 600
Account Payable 3100
Credit supplies and equipments

8 Cash 3400
Revenue 3400
Work completed for client

12 Cash 12,200
Unearned Revenue 12,200
Work completed on credit

13 Account Payable 3100


Cash 3100
Paid for account payabe

19 Prepaid Insurance 1800


Cash 1800
Paid for insurance policy

22 Cash 5300
Unearned Revenue 4900
Cash receive for partial payment

24 Cash 1750
Unearned Revenue 1750
Completedwork on credit

28 Ownerw Withdrawal 5300


Cash 5300
Owner withdraw cash

29 Office Supplies 249


Account Payable 249
Purchase supplies on credit

30 Utility Bill 531


Cash 531
Paid for month utility bill
53
1

Cash Acct. No. 101


Date Explanation PR Debit Credit Balance
Nov.
Accounts Receivable Acct. No. 106
Date Explanation PR Debit Credit Balance
Nov.

Office Supplies Acct. No. 124


Date Explanation PR Debit Credit Balance
Nov.

Prepaid Insurance Acct. No. 128


Date Explanation PR Debit Credit Balance
Nov.

Prepaid Rent Acct. No. 131


Date Explanation PR Debit Credit Balance
Nov.

Office Equipment Acct. No. 163


Date Explanation PR Debit Credit Balance
Nov.

Accounts Payable Acct. No. 201


Date Explanation PR Debit Credit Balance
Nov.

K. Shaw, Capital Acct. No. 301


Date Explanation PR Debit Credit Balance
Nov.

K. Shaw, Withdrawals Acct. No. 302


Date Explanation PR Debit Credit Balance
Nov.

Services Revenue Acct. No. 403


Date Explanation PR Debit Credit Balance
Nov.

Utilities Expense Acct. No. 690


Date Explanation PR Debit Credit Balance
Nov.

Part 3

SHAW MANAGEMENT SERVICES


Trial Balance
November 30
Debit Credit
Cash.......................................................................
Accounts receivable............................................
Office supplies......................................................
Prepaid insurance................................................
Prepaid rent..........................................................
Office equipment..................................................
Accounts payable.................................................
K. Shaw, Capital...................................................
K. Shaw, Withdrawals..........................................
Services revenue..................................................
Utilities expense...................................................    ______
Totals.....................................................................