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
2. Open the following ledger 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); Common Stock (307); Dividends (319); Services Revenue (401); and Utilities Expense (690). Post journal entries from part 1 to the ledger accounts and enter the balance after each posting.
