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, 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.

The unadjusted or adjusted balances will appear for each account, based on your selection.

UnadjustedAdjustedPost-closing

Unadjusted

LINKWORKS
Statement of Retained Earnings
For Month Ended April 30, 2019
Retained earnings, April 1, 2019	$0
Add: Net income
Less: Dividends	(5,500)
Retained earnings, April 30, 2019

The unadjusted or adjusted balances will appear for each account, based on your selection.

UnadjustedAdjustedPost-closing

Adjusted

LINKWORKS
Statement of Retained Earnings
For Month Ended April 30, 2019
Retained earnings, April 1, 2019	$0
Add: Net income
Less: Dividends	(5,500)
Retained earnings, April 30, 2019

Adjusted LINKWORKS Trial Balance April 30, 2019 Account Title Debit Credit Cash 48,065 Accounts receivable 4,490 Office supplies 4,200 Prepaid insurance 4,600 Prepaid rent 17,250 Office equipment 34,000 Accounts payable 600 Common stock 106,000 Dividends 5,500 Services revenue 12,890 Rent expense 750 Insurance expense 200 Utilities expense 435 Total 119,490 $ 119,490 Unadjusted LINKWORKS Trial Balance April 30, 2017 Credit Account Title Debit $ 59,465 Cash 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 435 119,490 $ Total 119,490 EA