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,eee 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 58,000 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 54,000 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 54,400 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 month's 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. Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on Income For transactions af, review the unadjusted balance and prepare the adjusting entry necessary to correctly report the revenue earned or the expense incurred. Each adjustment is posted automatically to the general ledger and trial balance as soon as you click "record entry View transaction list X: 1 On April 2, the company prepaid $9,000 cash for twelve months' rent for office space. Prepare the required adjusting entry, if any. The balance in Prepaid insurance represents the premium paid for a 12-month insurance policy; the policy's coverage began on April 1. Prepare the required adjusting entry, if any. 3 Office supplies on hand as of April 30 total $1,200. Prepare the required adjusting entry, if any. 4 Straight-line depreciation of office equipment, based on a 5-year life and a $4,000 salvage value, is $500 per month. Prepare the required adjusting entry, if any. Note : = journal entry has been entered Statement Earnings Balance Sheet impact on Income For transactions a-f, review the unadjusted balance and prepare the adjusting entry necessary to correctly report the revenue earned or the expense incurred. Each adjustment is posted automatically to the general ledger and trial balanc as soon as you click "record entry". No Date Apr 30 Account Title 1 Debit Credit Rent expense Prepaid rent Cash 750 8,250 9,000 2 Apr 30 Insurance expense Prepaid insurance Cash 200 2.200 2.400 3 Apr 30 Office supplies expense Office supplies 3,000 3.000 4 Apr 30 Depreciation expense - Office equipment Accumulated depreciation - Office equipment 500 500 5 Apr 30 Accounts receivable Services revenue 1,800 1.800 6 Apr 30 Wages expense Wages payable 2,600 2.600 election Adjusted LINKWORKS Income Statement For Month Ended April 30, 2019 Revenues Services revenue 14.690 Total revenues 0 $ 14,690 Expenses Utilities expense Prepaid rent Prepaid insurance Office supplies Depreciation expense - Office equipment Wages payable X 435 17.250 4,600 1.200 500 2,600 0 Total expenses Net loss 26.585 (11 8951 SS General Journal adjustment, indicate the income statement and balance sheet account affected, and the impact on net income. If an ent caused net income to decrease, enter the amount as a negative value. Net income before adjustments can be found on the incom nt tab.(Hint: Select unadjusted on the drop-down.) Show less Impact on net income OI ed Account affecting the: ng entry related to: Income Statement Balance Sheet Rent expense Prepaid rent rance Insurance expense Prepaid insurance ce supplies Office supplies expense office supplies preciation Depreciation expense - Office Accumulated depreciation - Office equipment equipment billed fees Services revenue Accounts receivable Wages expense Wages payable ampact on income due to adjustments come before adjustments ncome after adjustments Had the adjustments not been prepared, income would have been understated by (750) (200) (3.000) (500) bald wages $ 14,690 (2.600) 7.640 7,640 15,280 50.0% $