Rhonda Richards opens a web consulting business called Dairy Plus and completes the following transactions in its first month of operations. Prepare journal entries for each transaction and identify the financial statement impact of each entry. The financial statements are automatically generated based on the journal entries recorded.
Apr. 1: Richards invested $134,000 cash along with office equipment valued at $35,000 in the company.
Apr. 2: The company prepaid $19,800 cash for twelve months' rent for office space. The company's policy is to record prepaid expenses in balance sheet accounts.
Apr. 6: The company completed services for a client and immediately received $9,400 cash.
Apr. 13: The company paid $15,200 cash to settle the accounts payable created on April 3.
Apr. 22: The company received $9,000 cash as partial payment for the work completed on April 9.
Apr. 25: The company completed work for another client for $5,700 on credit.
Apr. 28: Richards withdrew $5,700 cash from the company for personal use.
Apr. 30: The company paid $2,300 cash for this month's utility bill.