1 Karla Tanner opened a web consulting business called Linkworks and recorded the following transactions in its first month of operations. 50 points eBook Apr. 1 Tanner invests $80,000 cash along with office equipment valued at $26,000 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 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 premium 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 $5,500 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. Print 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 1. 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 Earnings Balance Sheet Impact on Income General Journal tab -For each transaction, review the unadjusted balance and prepare the adjusting entry necessary to Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet 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-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. 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-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. 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.) 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 1 2 3 4 5 6 On April 2, the company prepaid $9,000 cash for twelve months' rent for office space. Prepare the required adjusting entry, if any. Note: Enter debits before credits. Account Title Debit Credit Date Apr 30 Record entry Clear entry View general journal Unadjusted General Ledger Account Cash Debit Accounts receivable Debit Credit No. Date Credit No. Date Balance 59,465 Balance 4,490 Apr 30 Apr 30 Office supplies Debit Credit Prepaid insurance Debit No. No. Credit Date Apr 30 Balance 4,200 Date Apr 30 Balance 2,400 Prepaid rent Debit Office equipment Debit Credit No. Date Credit No. Date Balance 9,000 Balance 34,000 Apr 30 Apr 30 Accounts payable Debit Credit Common stock Debit Credit No. Date No. Balance 600 Date Apr 30 Balance 106,000 Apr 30 Dividends Debit Services revenue Debit Credit No. Date Credit No. Balance 5,500 Date Apr 30 Balance 12,890 Apr 30 Utilities expense Debit Credit No. Date Balance 435 Apr 30 Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on Income You may view either the unadjusted or adjusted trial balance by choosing from the drop-down box below. Your choice will determine the reported values on the financial statement tabs. Unadjusted LINKWORKS Trial Balance April 30, 2017 Account Title Credit $ T Debit 59,465 4,490 4,200 2,400 9,000 34,000 Cash Accounts receivable office supplies Prepaid insurance Prepaid rent Office equipment Accounts payable Common stock Dividends Services revenue Utilities expense Total 600 106,000 5,500 12,890 435 $ 119,490 $ 119,490 Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings 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, 2019 Add: Net income Less: Dividends Retained earnings, April 30, 2019 0 (5,500) Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on Income 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 Current assets: LINKWORKS Balance Sheet April 30, 2019 ASSETS Current assets: Plant assets: LIABILITIES AND EQUITY Liabilities: Equity: Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings 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 A Unadjusted Account affecting the: Balance Sheet Impact on net income Adjusting entry related to: Income Statement a) Rent b) Insurance c) Office supplies d) Depreciation e) Unbilled fees f) Unpaid wages Balance Sheet Impact on Income > 1 Karla Tanner opened a web consulting business called Linkworks and recorded the following transactions in its first month of operations. 50 points eBook Apr. 1 Tanner invests $80,000 cash along with office equipment valued at $26,000 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 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 premium 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 $5,500 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. Print 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 1. 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 Earnings Balance Sheet Impact on Income General Journal tab -For each transaction, review the unadjusted balance and prepare the adjusting entry necessary to Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet 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-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. 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-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. 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.) 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 1 2 3 4 5 6 On April 2, the company prepaid $9,000 cash for twelve months' rent for office space. Prepare the required adjusting entry, if any. Note: Enter debits before credits. Account Title Debit Credit Date Apr 30 Record entry Clear entry View general journal Unadjusted General Ledger Account Cash Debit Accounts receivable Debit Credit No. Date Credit No. Date Balance 59,465 Balance 4,490 Apr 30 Apr 30 Office supplies Debit Credit Prepaid insurance Debit No. No. Credit Date Apr 30 Balance 4,200 Date Apr 30 Balance 2,400 Prepaid rent Debit Office equipment Debit Credit No. Date Credit No. Date Balance 9,000 Balance 34,000 Apr 30 Apr 30 Accounts payable Debit Credit Common stock Debit Credit No. Date No. Balance 600 Date Apr 30 Balance 106,000 Apr 30 Dividends Debit Services revenue Debit Credit No. Date Credit No. Balance 5,500 Date Apr 30 Balance 12,890 Apr 30 Utilities expense Debit Credit No. Date Balance 435 Apr 30 Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on Income You may view either the unadjusted or adjusted trial balance by choosing from the drop-down box below. Your choice will determine the reported values on the financial statement tabs. Unadjusted LINKWORKS Trial Balance April 30, 2017 Account Title Credit $ T Debit 59,465 4,490 4,200 2,400 9,000 34,000 Cash Accounts receivable office supplies Prepaid insurance Prepaid rent Office equipment Accounts payable Common stock Dividends Services revenue Utilities expense Total 600 106,000 5,500 12,890 435 $ 119,490 $ 119,490 Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings 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, 2019 Add: Net income Less: Dividends Retained earnings, April 30, 2019 0 (5,500) Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on Income 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 Current assets: LINKWORKS Balance Sheet April 30, 2019 ASSETS Current assets: Plant assets: LIABILITIES AND EQUITY Liabilities: Equity: Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings 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 A Unadjusted Account affecting the: Balance Sheet Impact on net income Adjusting entry related to: Income Statement a) Rent b) Insurance c) Office supplies d) Depreciation e) Unbilled fees f) Unpaid wages Balance Sheet Impact on Income >