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Karla Tanner opened a web consulting business called Lirkworks and recorded the following transactions in its first month of operations. Apr Tanr invests $80,000 cash
Karla Tanner opened a web consulting business called Lirkworks and recorded the following transactions in its first month of operations. Apr Tanr 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 palance sheet accounts. Ande credi purchases $8000 n ofiqupment and $3,600fiyments due wilhin fo days. AprThe company completed serices for a client and immediately received $4,000 cash. Apr 9 The company completed a S6,000 project for a cient who must pay within 30 days. pr1The company paid $11,600 cash to settie the account payable created on Apri 3 Apr The company paid $2400 ifoteium on a 12-month insuranc pcy. The company's cis ecod prepaid xpenses in balance sheet accounts. Apr 2z2 The compery receved $4,400 cash as partal peyment for the wok completed on Aprli Apr The company completed work for another cient for $2,890 on credit. Apr& The company paid $5,500 cash in dividends. Apr The company purchased $600 of addiional office supplies on credit Apr 30 The company paid $435 cash for this month's utity bili 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 fhe 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 ife 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 51,800 fee. Wages due to employees, but not yet paid, as of April 30 total $2,600. CREATE A GENERAL JOURNAL FOR THE FOLLOWING: 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 balance as soon as you click "record entry" 1 On April 2, the company prepaid $9,000 cash for twelve months' rent for office space. Prepare the required adjusting entry, if any 2 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. 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. 4 5 The company has completed work for a client, but has not yet billed the $1,800 fee. Prepare the required adjusting entry, if any. 6 Wages due to employees, but not yet paid, as of April 30 total $2.600. Prepare the required adjusting entry, if any
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