Karla Tanner opens a web consulting business called Linkworks and completes the following transactions in its first month of operations. Review the statement of retained earnings and indicate how the statement is linked to the other financial statements. Requirement

General

General

Income

St Retained

Journal

Ledger

Trial Balance

Statement

Earnings

Balance Sheet

FS Impact

The balance sheet is the accounting equation: Assets $=$ Liabilities $+$ Equity. Each asset and liability account is repo separately on the balance sheet. Equity includes common stock and the ending retained earnings amount from the of Retained Earnings. $\backslash$table$[[$Transaction:$,$Net Income,Total Assets,$\backslash$table$[[$Total$],[$Liabilities$]],$Total Equity$],[$Where can you go to find each of your answers?,,,,$]]$

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 $$435$ cash for this month$$s utility bill.An income statement reports the changes in equity attributable to the operation of the business during a specific tir

Revenues increase equity, and expenses decrease equity.