Karla Tanner opened web consulting business called Linkworks and recorded the following transactions in its first month of operations. 1 Tanner invests $80,000 cash along with office equipment valued at $26,000 in the company in exchange for common stock. 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. 3 The company made credit purchases for $8,000 in office equipment and $3,600 in office supplies. Payment is due within 10 days. 6 The company completed services for a client and immediately received $4,000 cash. 9 The company completed a $6,000 project for a client, who must pay within 30 days. Apr Apr Apr Apr Apr 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 month's utility bill 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 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. General General St Retained Income Impact on Income Trial Balance Requirement Balance Sheet Journal Ledger Statement Earnings 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". View transaction list Journal entry worksheet Journal entry worksheet 4 2 3 5 1 On April 2, the company prepaid $9,000 cash for twelve months' rent for office space. Prepare the required adjusting entry, if any Note: Enter debits before credits Date Account Title Debit Credit Apr 30 Clear entry Record entry View general journal Journal entry worksheet 4 6 1 2 3 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 Note: Enter debits before credits. Credit Date Account Title Debit Apr 30 Record entry Clear entry View general journal LO Journal entry worksheet
