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Karla Tanner opened a web consulting business called Linkworks and recorded the following transactions in its first month of operations Apr. 1 Tanner invests $80,000 cash along with office equipment valued at $26, in the company in exchange for common stock. Apr. 2. The company prepaid $9,000 cash for twelve months' rent for office space. The company's policy is record prepaid expenses in balance sheet accounts. Apr. 3 The company made credit purchases for $8,000 in office equipment and $3,600 in office supplies. Payment is due within 10 days. Apr. 6 The company completed services for a client and immediately received $4,000 cash. Apr. 9 The company completed a $6,000 project for a client, who must pay within 30 days. Apr. 13 The company paid $11,600 cash to settle the account payable created on April 3. Apr. 19 The company paid $2,400 cash for the presiun on a 12-month insurance policy. The company's policy is record prepaid expenses in balance sheet accounts Apr. 22 The company received 54,400 cash as partial payment for the work completed on April 9. Apr. 25 The company completed work for another client for $2,890 on credit. Apr. 28 The company paid 55,500 cash in dividends. Apr. 29 The company purchased $600 of additional office supplies on credit. Apr. 30 The company paid $435 cash for this month's utility bill. Descriptions of Items that require adjusting entries on April 30, follow. a) On April 2 the company prepaid $9,000 cash for twelve months' rent for office space. b) The balance in Prepaid insurance represents the premium paid for a 12-month insurance policy the policy's coverage began on April c) Office supplies on hand as of April 30 total $1.200. d) Straight-line depreciation of office equipment, based on a 5-year life and a $4,000 salvage value, is $500 per month e) The company has completed work for a client, but has not yet billed the $1,800 fee. Wages due to employees, but not yet paid, as of April 30 total $2,600. Requirement General Journal General Ledger Trial Balance Income Statement e sh St Retained B Earnings Impact on Income General Journal tab -For each transaction, review the unadjusted balance and prepare the adjusting entry necessary to correctly report the revenue earned or the expense incurred. After adjusting the accounts, review the general ledger and trial balance for accuracy. General Ledger tab - Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted or adjusted balances. Trial Balance tab - You may view either the unadjusted or adjusted trial balance by choosing from the dropdown box below. Your choice will determine the reported values on the financial statement tabs. Income Statement tab - Use the drop-down to select the accounts properly included on the income statement The unadjusted or adjusted balances will appear for each account based on your selection Statement of Retained earnings tab - The unadjusted or adjusted balances will appear for each account based on your selection. Balance Sheet tab - Use the drop-down to select the accounts properly included on the balance sheet. The unadjusted or adjusted balances will appear for each account, based on your selection. Impact on Income tab -For each adjustment indicate the income statement and balance sheet account affected, and the impact on net income. If an adjustment caused net income to decrease, enter the amount as a negative value. Net income before adjustments can be found on the income statement tab. (Hint: Select unadjusted on the dropdown.) General Journal > Karla Tanner opened a web consulting business called Linkworks and recorded the following transactions in its first month of operations Apr. Tanner invests $80,00 cash along with office equipment valued at $25,000 in the company in exchange for common stock Apr. 2. The company prepaid $9,000 cash for twelve months' rent for office space. The company's policy is record prepaid expenses in balance sheet accounts. Apr. 3 The company sade credit purchases for $8,000 in office equipment and $3,600 in office supplies. Payment is due within 10 days. Apr. 6 The company completed services for a client and immediately received 54,000 cash Apr. 9 The company completed a 56,eee project for a client, who must pay within 30 days. Apr. 13 The company paid $11,600 cash to settle the account payable created on April 3. Apr. 19 The company paid $2,400 cash for the press on a 12-month insurance policy. The company's policy is record prepaid expenses in balance sheet accounts. Apr. 22 The company received $4,400 cash as partial payment for the work completed on April 9. Apr. 25 The company completed work for another client for $2,890 on credit. Apr. 28 The company paid ss, see cash in dividends. Apr. 29 The company purchased $600 of additional office supplies on credit. Apr. 3 The company paid $435 cash for this month's utility bill Descriptions of items that require adjusting entries on April 30, follow a) On April 2. the company prepaid $9.000 cash for twelve months' rent for office space b) The balance in Prepaid insurance represents the premium paid for a 12-month insurance policy the policy's coverage began on April c) Office supplies on hand as of April 30 total $1200 d Straight-line depreciation of office equipment, based on a 5-year life and a $4.000 salvage value, is 5500 per month e) The company has completed work for a client, but has not yet billed the $1800 fee. Wages due to employees, but not yet paid, as of April 30 total $2.600. Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on Income For transactions a-f, review the unadjusted balance and prepare the adjusting entry necessary to correctly report the revenue earned or the expense incurred. Each adjustment is posted automatically to the general ledger and trial balance as soon as you click "record entry View transaction list Journal entry worksheet 2 3 4 5 On April 2. the company prepaid $9.000 cash for twelve months' rent for office space. Prepare the required adjusting entry, if any. Descriptions of items that require adjusting entries on April 30, follow. a) On April 2 the company prepaid $9,000 cash for twelve months' rent for office space. b) The balance in Prepaid insurance represents the premium paid for a 12-month insurance policy the policy's coverage begi c) Office supplies on hand as of April 30 total $1.200. d) Straight-line depreciation of office equipment, based on a 5-year life and a $4.000 salvage value, is $500 per month e) The company has completed work for a client, but has not yet billed the $1800 fee f) Wages due to employees, but not yet paid, as of April 30 total $2,600. Requirement General Journal General Ledger Trial Balance Income Statement St Retained St Retained Earnings Balance Sheet Impact on Income Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted or adjusted balances. Unadjusted General Ledger Account Cash Accounts receivable Debit Credit Date Debit Credit Balance Date Balance Apr 30 50,465 Apr 30 Office supplies Prepaid insurance Debit Credit Date Debit Credit Balance Date Balance 2.400 Apr 30 Apr 30 Prepaid rent Orice equipment Date Debit Credit Balance Credit Balance 0.000 Accounts payable Common stock Credit Date Debit Credit Balance Balance 300 Apr 30 Apr 30 108.000 Services revenue Dividends Debit Date Credit Date Debit Credit Balance Balance 5.500 Apr 30 Utilities expense Debit Credit Balance Date Aor 30 Apr. 22 The company received 54,400 cash as partial payment for the work completed on April 9. Apr. 25 The company completed work for another client for $2,898 on credit. Apr. 28 The company paid $5,5ee cash in dividends. Apr. 29 The company purchased $600 of additional office supplies on credit. Apr. 30 The company paid 5435 cash for this month's utility bill. Descriptions of items that require adjusting entries on April 30, follow. a) On April 2, the company prepaid $9,000 cash for twelve months' rent for office space. b) The balance in Prepaid insurance represents the premium paid for a 12-month insurance policy the policy's coverage begi c) Office supplies on hand as of April 30 total $1,200. d) Straight-line depreciation of office equipment, based on a 5-year life and a $4.000 salvage value, is $500 per month e) The company has completed work for a client, but has not yet billed the $1,800 fee. Wages due to employees, but not yet paid, as of April 30 total $2,600. Requirement General Journal General Ledger Trial Balance Income Statement Impact on Balance Sheet Earnings Income Use the drop-downs to select the accounts properly included on the income statement. The unadjusted or adjusted balances will appear for each account based on your selection. Unadjusted LINKWORKS Income Statement For Month Ended April 30, 2019 50 Expenses 0 0 Net Income 9 The company completed a $6,eee project for a client, who must pay within 30 days. . 13 The company paid $11,600 cash to settle the account payable created on April 3. r. 19 The company paid $2,400 cash for the premium on a 12-month insurance policy. The company's policy is record pri expenses in balance sheet accounts. r. 22 The company received $4,400 cash as partial payment for the work completed on April 9. or. 25 The company completed work for another client for $2,890 on credit. gr. 28 The company paid $5,500 cash in dividends. pr. 29 The company purchased $600 of additional office supplies on credit. pr. 30 The company paid $435 cash for this month's utility bill. Descriptions of Items that require adjusting entries on April 30, follow. a) On April 2, the company prepaid $9,000 cash for twelve months' rent for office space. b) The balance in Prepaid insurance represents the premium paid for a 12-month insurance policy the policy's coverage bega c) Office Supplies on hand as of April 30 total $1,200. d) Straight-line depreciation of office equipment, based on a 5-year life and a $4,000 salvage value, is $500 per month e) The company has completed work for a client, but has not yet billed the $1.800 fee. f) Wages due to employees, but not yet paid, as of April 30 total $2,600. Requirement General Journal General Ledger Trial Balance Income Statement St Retained Eamings Balance Sheet Impact on Income The unadjusted or adjusted balances will appear for each account, based on your selection. Unadjusted LINKWORKS Statement of Retained Earnings For Month Ended April 30, 2019 Retained earnings. April 1, 2010 Add: Net income Less Dividends Retained earings, April 30, 2010 d) Straight-line depreciation of office equipment, based on a 5-year life and a $4,000 salvage value, is $500 per month e) The company has completed work for a client, but has not yet billed the $1800 fee 1 Wages due to employees, but not yet paid, as of April 30 total $2.600. Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on Tacone Use the drop-downs to select the accounts properly included on the balance sheet. The unadjusted or adjusted balances will appear for each account, based on your selection. Include all balance sheet accounts, even those with zero balances Show less Unadjusted LINKWORKS Balance Sheet April 30, 2019 ASSETS S 50 LIABILITIES AND EQUITY Liabilities S 0 Four any pase a casa tor the premium on a 12-month insurance policy. The company's policy is record prepaid expenses in balance sheet accounts. 22 The company received 54,400 cash as partial payment for the work completed on April 9. 25 The company completed work for another client for $2,890 on credit. 28 The company paid $5,500 cash in dividends. 29 The company purchased $600 of additional office supplies on credit 30 The company paid $435 cash for this month's utility bill. criptions of items that require adjusting entries on April 30, follow On April 2, the company prepaid $9,000 cash for twelve months' rent for office space. The balance in Prepaid insurance represents the premium paid for a 12-month insurance policy the policy's coverage began on April Office supplies on hand as of April 30 total $1.200. Straight-line depreciation of office equipment, based on a 5-year life and a $4,000 salvage value, is $500 per month The company has completed work for a client, but has not yet billed the $1,800 fee. Wages due to employees, but not yet paid, as of April 30 total $2,600. Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earings Balance Sheet Impact on Income For each adjustment, indicate the income statement and balance sheet account affected, and the impact on net income. If an adjustment caused net income to decrease enter the amount as a negative value. Net income before adjustments can be found on the income statement tab.(Hint: Select unadjusted on the drop-down.) Show less Unadjusted Account affecting the Impact on net income Income Statement Balance Sheet Adjusting entry related to a) Rent - c) Ohoe Deore (Falance Sheet

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