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.

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.

Linkworks Company
Balance Sheet
April 30, 2021
Assets
Cash	$59,465
Accounts receivable	4,490
Office supplies	30,200
Prepaid insurance	2,400
Prepaid rent	9,000
Office equipment	8,000
Total assets	$113,555
Liabilities
Accounts payable	$600
Total liabilities	600
Equity
Common stock	106,000
Retained earnings	6,955
Total equity	112,955
Total liabilities and equity	$113,555
The balance in retained earnings comes from the: