Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Karla Tanner opens a web consulting business called Linkworks and completes the following transactions in its first month of operations. Prepare journal entries for each

image text in transcribed Karla Tanner opens a web consulting business called Linkworks and completes the following transactions in its first month of operations. Prepare journal entries for each transaction and identify the financial statement impact of each entry. The financial statements are automatically generated based on the journal entries recorded. April 2 The company prepaid \\$9, 100 cash for 12 months' rent for office space. The company's policy is to record prepaid expenses in balance sheet accounts. April 3 The company made credit purchases for \\( \\$ 8, \\ominus \\theta \\ominus \\) in office equipment and \\( \\$ 3,6 \\theta \\ominus \\) in office supplies. Payment is due within \\( 1 \\ominus \\) days. April 6 The company completed services for a client and immediately received \\$4, \\( \\theta \\) e cash. April 9 The company completed a \\( \\$ 6,00 \\ominus \\) project for a client, who must pay within 30 days. April 13 The company paid \\( \\$ 11,690 \\) cash to settle the account payable created on April 3. April 19 The company paid \\( \\$ 2,46 \\) cash for the premium on a 12 -month prepaid insurance policy. The company's policy is to record prepaid expenses in balance sheet accounts. April 22 The company received \\( \\$ 4,406 \\) cash as partial payment for the work completed on April 9. April 25 The company completed work for another client for \\( \\$ 2 \\), 890 on credit. April 28 The company paid \\( \\$ 5,509 \\) cash in dividends. April 29 The company purchased \\( \\$ 660 \\) of additional office supplies on credit. April 30 The company paid \\( \\$ 435 \\) cash for this month's utility bill. The financial statements report the cumulative impact of all transactions recorded as of the financial statement date. Input the cumulative amount of a) Net Income (Loss), b) Total Assets, c) Total Liabilities, and d) Total Equity that would be reported on the financial statements immediately after each transaction is recorded. (Hint: You can check your work by selecting the date on the trial balance tab.) The first two transactions are completed for you

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

Each function is one-to-one. Find its inverse. f(x)=X+3 x = -5

Answered: 1 week ago

Question

what are the provisions in the absence of Partnership Deed?

Answered: 1 week ago

Question

1. What is called precipitation?

Answered: 1 week ago