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 $80,000 cash along with office equipment valued at $26,000 in the company in exchange for common stock.
April 2	The company prepaid $9,000 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 $8,000 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 $4,000 cash.
April 9	The company completed a $6,000 project for a client, who must pay within 30 days.
April 13	The company paid $11,600 cash to settle the account payable created on April 3.
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.
April 22	The company received $4,400 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 $600 of additional office supplies on credit.
April 30	The company paid $435 cash for this months utility bill.

Review the statement of retained earnings and indicate how the statement is linked to the other financial statements.

Linkworks Company
Statement of Retained Earnings
For Month Ended April 30, 2021
Retained earnings, April 1, 2021
Add: Net income	12,455
Less: Dividends	(5,500)
Retained earnings, April 30, 2021	$6,955
Ending retained earnings is transferred to the: