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 Prepare adjusted Balance Sheet

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Posted on Sep 02, 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.