ANSWER ALL PARTS

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 $26,000 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 months utility bill.

Descriptions of items that require adjusting entries on April 30, 2017, 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.

General General Income St Retained Impact on Income Balance Sheet Trial Balance Requirement Journal Ledger Statement Earnings 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 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 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.) Use the drop-downs to select the accounts properly included on the balance sheet. The unadjusted or General Journal Requirement General General Income St Retained Impact on Income Requirement Trial Balance Balance Sheet Journal Ledger Earnings Statement 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 6 1 2 3 4 5 The balance in Prepaid insurance represents the premium paid for a 12-month insurance policy; the policy's coverage began on April 1. Prepare the required adjusting entry, if any Note: Enter debits before credits. Account Title Date Debit Credit Apr 30 Record entry Clear entry View general journal Unadjusted General Ledger Account Cash Accounts receivable No. Debit Credit Date Balance Date Debit Credit Balance 4,490 Apr 30 59,465 Apr 30 Prepaid insurance Office supplies Debit Credit Credit No. Date Balance No. Date Debit Balance Apr 30 4,200 Apr 30 2,400 Prepaid rent Office equipment No. Debit Credit Balance No. Debit Credit Balance Date Date 9,000 Apr 30 34,000 Apr 30 Common stock Accounts payable Credit Credit Debit No. Date Debit Balance No. Date Balance Apr 30 600 106,000 Services revenue Dividends Credit Credit No. Date Debit Balance No. Date Debit Balance 5,500 Apr 30 12,890 Utilities expense No. Debit Credit Balance Date Apr 30 435 General Journal Trial Balance > No Unadjusted LINKWORKS Trial Balance April 30, 2016 Account Title Debit Credit Cash 59,465 Accounts receivable 4,490 Office supplies 4,200 Prepaid insurance 2,400 Prepaid rent 9.000 Office equipment 34,000 Accounts payable 600 Common stock 106,000 Dividends 5,500 Services revenue 12,890 Utilities expense 435 Total 119,490 S $ 119,490 General Ledger Income Statement Unadjusted LINKWORKS Income Statement For Month Ended April 30, 2017 Revenues: $ 0 Expenses: 0 0 0 Net income $ 0 St Retained Earnings > Trial Balance General St Retained General Income Impact on Trial Balance Balance Sheet Requirement Journal Ledger Statement Earnings 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, 2017 $ Retained earnings, April 1, 2017 0 Add: Net income Less: Withdrawals by owner (5,500) Retained earnings, April 30, 2017 Balance Sheet > Income Statement 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: Impact on net income Balance Sheet Adjusting entry related to: Income Statement a) Rent b) Insurance c) Office supplies d) Depreciation e) Unbilled fees f) Unpaid wages Impact on Income Balance Sheet