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 Unadjusted LINKWORKS Balance Sheet April 30, 2019 ASSETS Current assets Plant assets LIABILITIES AND EQUITY Liabilities Equity Unadjusted Account affecting the Impact on net income Adjusting entry related to Income Statement Balance Sheet a) Rent b) Insurance c) Office supplies d) Depreciation e) Unbilled fees f) Unpaid wages

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 17, 2024

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.

Unadjusted

Unadjusted