Karla Tanner opens a web consulting business called Linkworks and completes the following transactions in its first month of operations. Prepare joumal entrles for each transaction and Identify the financlal statement Impact of each entry. The financlal statements are automatlcally generated based on the journal entrles recorded. April 1 Tanner invested $80,880 cash along with office equipment valued at $26,800 in the company in exchange for conmon stock. April 2 The conpany prepaid $9,680 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 $8,600 in office equipment and $3,600 in office supplies. Payment is due within 10 days. April 6 The conpany completed services for a client and immediately received $4,060 cash. April 9 The conpany completed a $6,600 project for a client, who nust pay within 39 days. Apri1 13 The conpany paid $11,600 cash to settle the account payable created on April 3. Apri1 19 The conpany paid $2,480 cash for the prenium on a 12 -month prepaid insurance policy. The company's policy is to record prepaid expenses in balance sheet accounts. Apri1 22 The conpany received $4,480 cash as partial payment for the work completed on April 9. Apri1 25 The conpany completed work for another client for $2,890 on credit. April 28 The conpany paid $5,50e cash in dividends. Apri1 29 The conpany purchased $6ee of additional office supplies on credit. Apri1 30 The company paid $435 cash for this nonth'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. Review 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 liabilities and total equity that would appear on the financial statements immediately after each transaction is recorded. 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 joumal entry that is out of balance. If you have an abnomal ending balance (indicated with brackets in the general ledger), you should review the joumal 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 period. Revenues increase equity, and expenses decrease equity. iew the statement of retained eamings 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