Question

Question:Humble Management Services opened for business and completed these transactions in September.

Sep. 1 Henry Humble, the owner, invested \(38,000 cash along with office equipment valued at \)15,000 in the company in exchange for common stock.

2 The company prepaid \(9,000 cash for 12 months’ rent for office space. (Hint:Debit Prepaid Rent for \)9,000.)

4 The company made credit purchases for \(8,000 in office equipment and \)2,400 in office supplies. Payment is due within 10 days.

8 The company completed work for a client and immediately received \(3,280 cash.

12 The company completed a \)15,400 project for a client, who must pay within 30 days.

13 The company paid \(10,400 cash to settle the payable created on September 4.

19 The company paid \)1,900 cash for the premium on an 18-month insurance policy. (Hint:Debit Prepaid Insurance for \(1,900.)

22 The company received \)7,700 cash as partial payment for the work completed on September 12.

24 The company completed work for another client for \(2,100 on credit.

28 The company paid \)5,300 cash in dividends.

29 The company purchased \(550 of additional office supplies on credit.

30 The company paid \)860 cash for this month’s utility bill.

Required

1. Prepare general journal entries to record these transactions (use account titles listed in part 2).

Short answer

The total of general journal matches at$119,890.

Step-by-step solution

Journal Entry (part 1) 

General Journal
Page 1
Date	Description	PR	Debit	Credit
Sept 1	Cash	101	$ 38,000
	Office Equipment	163	15,000
	Common Stock	307		$ 106,000
	Being investment made into the business in the form of cash and equipment
2	Prepaid Rent	131	9,000
	Cash	101		9,000
	Being rent paid in advance
4	Office Equipment	163	8,000
	Office Supplies	124	2,400
	Accounts Payable	201		10,400
	Being office equipment and supplies purchased on credit
8	Cash	101	3,280
	Service Revenue	401		3,280
	Being cash received for providing services
12	Accounts Receivables	106	15.400
	Service Revenues	403		15,400
	Being services provided and payment due to receive
13	Accounts Payable	201	10,400
	Cash	101		10,400
	Being cash paid to creditors
19	Prepaid Insurance	128	1,900
	Cash	101		1,900
	Being insurance premium paid for 12 months
	Carried Forward		$ 103,380	$ 103,380

Journal Entry (part 2)

General Journal
Page 2
Date	Description	PR	Debit	Credit
	Brought Forward		$ 103,380	$ 103,380
22	Cash	101	7,700
	Accounts Receivables	106		7,700
	Being amount received from receivables
24	Accounts Receivables	106	2,100
	Service Revenues	403		2,100
	Being services provided on credit
28	Dividends	319	5,300
	Cash	101		5,300
	Being dividend paid
29	Office supplies	124	550
	Accounts payable	201		550
	Being supplies purchased on credit
30	Utility Expense	690	860
	Cash	101		860
	Being utility expenses paid
	Total		$ 119,890	$ 119,890