The document contains 9 journal entries to record various transactions for a new business. The entries include: contributions of cash from the owner, payment of rent and expenses, purchases of equipment, a truck, and supplies both with cash and accounts payable, recognition of revenue for jobs completed with both cash and accounts receivable, and prepayment of insurance. The entries are to be posted to general ledger accounts and an unadjusted trial balance prepared grouping accounts by type.

1. Unit 2 – Solution to PR2-3A

2. Journalize EntriesEntry 1: Kathleen transferred cash from a personal bank account to an account to be used for the business, $17,000. Journal EntryCash 17,000 Kathleen Alvarez, Capital 17,000

3. Journalize Entries, cont.Entry 2: Paid rent for period of April 2 to end of month, $3,400. Journal EntryRent Expense 3,400 Cash 3,400

4. Journalize Entries, cont.Entry 3: Purchased office equipment on account, $10,000. Journal EntryEquipment 10,000 Accounts Payable 10,000

5. Journalize Entries, cont.Entry 4: Purchased a used truck for $21,000, paying $2,000 cash and giving a note payable for the remainder. Journal EntryTruck 21,000 Cash 2,000 Note Payable 19,000

6. Journalize Entries, cont.Entry 5: Purchased supplies for cash, $1,800 Journal EntrySupplies 1,800 Cash 1,800

7. Journalize Entries, cont.Entry 6: Received cash for jobs completed, $13,000. Journal EntryCash 13,000 Fees Earned 13,000

8. Journalize Entries, cont.Entry 7: Paid annual premiums on property and casualty insurance, $1,800. Journal EntryPrepaid Insurance 1,800 Cash 1,800

9. Journalize Entries, cont.Entry 8: Recorded jobs completed on account and sent invoices to customers, $9,000.Journal EntryAccounts Receivable 9,000 Fees Earned 9,000

10. Journalize Entries, cont.Entry 9: Received an invoice for truck expenses, to be paid in April, $1,000. Journal EntryTruck Expense 1,000 Accounts Payable 1,000

11. Other CommentsContinue with remainder of entriesPost each transaction to the general ledger under each accountPrepare an unadjusted trial balance – a listing of all general ledger accounts with their current total balanceTrial Balance accounts are listed/grouped by Account Type in the following order: Assets, Liabilities, Owners Equity, Revenues, ExpensesContact me – etruban@lfcc.edu with questions