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 1 Tanner invested $80,e cash along with office equipment valued at $26,e in the company in exchange for common stock. April 2 The company prepaid $9,60 cash for 12 months' rent for office space. The company's policy is to recond prepaid expenses in balance sheet accounts. April 3 The company made credit purchases for $8,00 in office equipment and $3,600 in office supplies. Payment is due within 10 days. April 6 The company completed services for a client and immediately received \$4, 60 cash. April 9 The company completed a $6,06 project for a client, who must pay within 30 days. April 13 The company paid $11,696 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 $4,4 e 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 $5,500 cash in dividends. April 29 The company purchased $60 of additional office supplies on credit. April 30 The company paid $435 cash for this month's utility bill. General Journal Tab - For each transaction, prepare the required journal entry on the General Journal tab. List debits before credits. General Ledger Tab - One of the advantages of general ledger software is that posting is done automatically. To see the detail of all transactions that affect a specific account, or the balance in an account at a specific point in time, click on the General Ledger tab. Trial Balance Tab - General ledger software also automates the preparation of trial balances. A trial balance lists each account from the General Ledger, along with its balance, either a debit or a credit. Total debits should always equal total credits. Income Statement Tab - The revenue and expense balances from the trial balance appear on the income statement, along with their balance as of the date selected. Review the income statement and indicate how the income statement is linked to the other financial statements. Statement of Retained Earnings Tab - Beginning retained earnings plus (minus) net income (loss) for the period less dividends. Review the statement of Retained earnings and indicate how the statement is linked to the other financial statements. Balance Sheet Tab - Each asset and liability account balance, as reported on the trial balance, appears on the balance sheet, along with the equity balances. Revievi the balance sheet and then indicate how the balance sheet is linked to the other financial statements. Financial Statement Impact Tab it is important to be able to identify the impact each transaction has on the financial statements. For each of the transactions, indicate the cumulative amount of net income, total assets, total liabilies and total equity that would appear on the financial statements immediately after each transaction is recorded. April 1) Tanner invested $80,000 cash along with office equipment valued at $26,000 in the company in exchange for common stock. Note: Enter debits before credits. 1 April 1) Tanner invested $80,000 cash along with office equipment valued at $26,000 in the company in exchange for common stock. 2 April 2) The company prepaid $9,000 cash for 12 months' rent for office space. The company's policy is record prepaid expenses in balance sheet accounts. 3 April 3) The company made credit purchases for $8,000 in office equipment and $3,600 in office supplies. Payment is due within 10 days. 4. April 6) The company completed services for a client and immediately received $4,000 cash. immediately received $4,000 cash. 5 April 9) The company completed a $6,000 project for a client, who must pay within 30 days. 6 April 13) The company paid $11,600 cash to settle the account payable created on April 3. 7 April 19) The company paid $2,400 cash for the premium on a 12-month prepaid insurance policy. The company's policy is to record prepaid expenses in balance sheet accounts. 8 April 22) The company received $4,400 cash as partial payment for the work completed on April 9. 8 April 22) The company received $4,400 cash as partial payment for the work completed on April 9. 9 April 25) The company completed work for another client for $2,890 on credit. 10 April 28) The company paid $5,500 cash in dividends. 11 April 29) The company purchased $600 of additional office supplies on credit. 12 April 30) The company paid $435 cash for this month's utility bill. Each journal entry is posted automatically to the general ledger. Think of the general ledger as sorting all of your journal entries by account title. Click on any of the individual amounts to return to the underlying journal entry. General Ledger Account Data is not available until journal entries have been entered. The trial balance is a listing of all account balances from the General Ledger as of a specific date. Click on any individual account balance to return to the General Ledger. The trial balance is only as accurate as the underlying journal entries. If the total debits do not equal the total credits, you must have a journal entry that is out of balance. If you have an abnormal ending balance (indicated with brackets in the general ledger), you should review the journal entries that affected that account to ensure that the journal entries are correct. An income statement reports the changes in equity attributable to the operation of the business during a specific time per Revenues increase equity, and expenses decrease equity. Review the statement of retained earnings and indicate how the statement is linked to the other financial statements. The balance sheet is the accounting equation: Assets = Liabilities + Equity. Each asset and liability account is reported separately on the balance sheet. Equity includes common stock and the ending retained earnings amount from the Statement of Retained Earnings. 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