Ed Egert opened a web consulting business called Gourmet Menus and recorded the following transactions in its first month of operations Apr. 1 Egert invests $89,000 cash along with office equipment valued at $27,500 in the company. Apr. 2 The company prepaid $10,800 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 $8,300 in office equipment and $3,900 in office supplies. Payment is due within 10 days. Apr. 6 The company completed services for a client and immediately received $4,900 cash. Apr. 9 The company completed a $7.500 project for a client, who must pay within 30 days. Apr. 13 The company paid $12,200 cash to settle the account payable created on April 3. Apr. 19 The company paid $3,120 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 $4,500 cash as partial payment for the work completed on April 9. Apr. 25 The company completed work for another client for $4,200 on credit. Apr. 28 Egert withdrew $5,800 cash from the company for personal use. Apr. 29 The company purchased $900 of additional office supplies on credit. Apr. 30 The company paid $900 cash for this month's utility bill. Descriptions of items that require adjusting entries on April 30, 2019, follow a) On April 2, the company prepaid $10,800 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 $1,500. d) Straight-line depreciation of office equipment, based on a 5 year life and a $14,800 salvage value, is $350 per month e) The company has completed work for a client, but has not yet billed the $2,400 fee. 1) Wages due to employees, but not yet paid, as of April 30 total $2,900. Income General Journal Requirement General Ledger Trial Balance Balance Sheet St Owners Equity Impact on Income Statement 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 Journal entry worksheet 2 3 4 5 6 On April 2, the company prepaid $10,800 cash for twelve months' rent for office space. Prepare the required adjusting entry, if any. Note: Enter debits before credits Date Account Title Debit Credit Apr 30 Journal entry worksheet 3 4 5 6 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 Debit Credit Date Apr 30 Journal entry worksheet
