ACG2021 CH 3 LAB

Jeanne Byrnes opened a web consulting business called Fashion First and recorded the following transactions in its first month of operations. April i Byrnes invests $92,000 cash along with office equipment valued at $30,500 in the company in exchange for common stock. April 2 The company prepaid $11,400 cash for twelve months' rent for office space. The company's policy is record prepaid expenses in balance sheet accounts. April 3 The company made credit purchases for $8,900 in office equipment and $3,900 in office supplies. Payment is due within 10 days. April 6 The company completed services for a client and immediately received $6,700 cash. April 9 The company completed a $10,500 project for a client, who must pay within 30 days. April 13 The company paid $12,800 cash to settle the account payable created on April 3. April 19 The company paid $3,360 cash for the premium on a 12-month insurance policy. The company's policy is record prepaid expenses in balance sheet accounts. April 22 The company received $4,800 cash as partial payment for the work completed on April 9. April 25 The company completed work for another client for $4,800 on credit. April 28 The company paid $5,600 cash in dividends. April 29 The company purchased $1,500 of additional office supplies on credit. April 30 The company paid $2,100 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 $11,400 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 $1,500. d) Straight-line depreciation of office equipment, based on a 5-year life and a $24,400 salvage value, is $250 per month. e) The company has completed work for a client, but has not yet billed the $2,000 fee. f) Wages due to employees, but not yet paid, as of April 30 total $2,700. Requirement General Journal General Ledger Trial Balance Income Statement St of 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