Grace Labeille opened a web consulting business called Travel Smart and recorded the following transactions in its first month of operations Apr. 1 Labeille invests $92, 000 cash along with office equipment valued at $28,000 in the company Apr. 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 Apr. 3 The company made credit purchases for $8, 400 in office equipment and $4, 000 in office supplies. Payment is due within 10 days Apr. 6 The company completed services for a client and immediately received $5, 200 cash Apr. 9 The company completed a $8,000 project for a client, who must pay within 30 days Apr. 13 The company paid $12, 400 cash to settle the account payable created on April 3 Apr. 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 Apr. 22 The company received $4, 800 cash as partial payment for the work completed on April 9 Apr. 25 The company completed work for another client for $4, 300 on credit. Apr. 28 Labeille withdrew $5,900 cash from the company for personal use Apr. 29 The company purchased $1,000 of additional office supplies on credit. Apr. 30 The company paid $1,100 cash for this month's utility bill Descriptlons of Items that require adjusting entries on April 30, 2017, 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 $1,600 d) Straight-line depreciation of office equipment, based on a 5-year life and a $18,400 salvage value, is $300 per month. e) The company has completed work for a client, but has not yet billed the $2,600 fee f) Wages due to employees, but not yet paid, as of April 30 total $3,00o Journal entry worksheet On April 2, the company prepaid $11,400 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 Record entry Clear entry View general journal General Ledger Account Cash Accounts receivable No. Date Debit Credit Balance No. Date Debit Credit Balance Apr 30 67,840 Apr 30 7,500 Office supplies Prepaid insurance No. Date Debit Credit Balance No. Date Debit Credit Balance Apr 30 5,000 Apr 30 3,360 Prepaid rent Office equipment No. Date Debit Credit Balance No. Date Debit Credit Balance Apr 30 11,400 Apr 30 36,400 Accounts paya G. Labeille, Capital No. Date Debit Credit Balance No. Date Debit Credit Balance Apr 30 1,000 Apr 30 120,000 G. Labeille, Withdrawals Services revenue No. Date Debit Credit Balance No. Date Debit Credit Balance Apr 30 5,900 Apr 30 17,500 Utilities expense Date Debit Credit Balance Apr 30 1,100 TRAVEL SMART Trial Balance April 30, 2017 Account Title Debit Credit Cash Accounts receivable Office supplies Prepaid insurance Prepaid rent Office equipment Accounts payable G. Labeille, Capital G. Labeille, Withdrawals Services revenue Utilities expense 67,840 7,500 5,000 3,360 11,400 36,400 1,000 120,000 5,900 17,500 1,100 Total 138,500 $ 138,500 TRAVEL SMART Income Statement For Month Ended April 30, 2017 Revenues: Expenses: TRAVEL SMART Statement of Owner's Equity For Month Ended April 30, 2017 G. Labeille, Capital, April 1, 2017 Add: Investments by owner $120,000 120,000 120,000 Less: Withdrawals by owner 5,900 (5,900) $ 114,100 G. Labeille, Capital, April 30, 2017 TRAVEL SMART Balance Sheet April 30, 2017 ASSETS Current assets: Plant assets: LIABILITIES AND EQUITY Liabilities: Equity: Account affecting the: Impact on net income Adjusting entry related to a) Rent b) Insurance c) Office supplies d) Depreciation e) Unbilled fees f Unpaid wages Income Statement Balance Sheet