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.

Unadjusted 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 Adjusted- 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 Worksheet For the month ending Apr 30 Adjustment Debit in $ Credit in $ Debit in Credit in $ Debit in $ Credit in $ Unadjusted Adjusted Particulars Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Office Equipement Accum.Depre Equip Accounts Payable Wages Payable Common Stock Retained Earnings Dividends Service Revenue Utility Expense Rent Expense Insurance Expense Supplies Expense Depreciation Expense Equip Wages Expense Totals 13290 4200 2400 3000 750 8250 600 600 2600 106000 2600 106000 5500 5500 1800 14690 435 435 750 200 3000 2600 2600 119490 119490 8850 124390 124390 Statement of Income For the month ending Apr 30 Service Revenue Less: Utility Expense Rent Expense Insurance Expense Supplies Expense Depreciation Expense Equip Wages Expense 14690 435 750 K) 500 2600 7485 7205 Statement of Retained Earnings For the month ending Apr 30 7205 5500 1705 Dividends Balance sheet As at Apr 30 Assets Current Assets Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Amounts in$ Amounts in $ Liabilities Amounts in $ Amounts in $ Current Liabilities Accounts Payable Wages Payable 50665 15090 1200 2200 8250 600 2600 3200 77405 Non Current Assets Office Equipement Accum.Depre- Equip Total Assets Shareholders Equity Common Stock 34000 106000 33500 Retained Earnings 110905 Total Liabilities & equity 500 1705 107705 110905 Adiustment enteries Date Particulars Debit in $ Credit in Income Statement Balance sheet Income impact -750 -750 Apr-30 Rent Expense a/c 750 Rent Expense To Prepaid rent 750 Current Assets (being rent expensed for 11 months 9000 / 12 750 Apr-30 Insurance Expense a/c Dr. 200 Insurance Expense 200 To Prepaid Insurance 200 Current Assets 200 (being rent expensed for 11 months 2400/12 200 Apr-30 Supplies Expense a/c Dr. 3000 Supplies Expense -3000 To Supplies 3000 Current Assets -3000 (being Supplies expensed (3600+600 1200 Apr-30 Depreciation Expense - Equipa/c Dr 500 Depreciation To Accum.Depre Equi 500 Non Current Assets (being Depreciation charged to Equipment) Apr-30 Accounts Receivable a/c Dr 1800 Current Assets To Service Revenue 1800 Service Revenue (Being services performed on account) Apr-30 Wages Expense a/d 2600 Wages Expense -2600 To Wages Payable 2600 Current Liabilities 2600 (Being Wages accrued)