Karla Tanner opens a web consulting business called Linkworks and recorded the following transactions in its first month of operations.

Apr. 1 Tanner invests $80,000 cash along with office equipment valued at $26,000 in the company in exchange for common stock.

Apr. 2 The company prepaid $9,000 cash for twelve months rent for office space. The company's policy is record prepaid expenses in balance sheet accounts.

Apr. 3 The company made credit purchases for $8,000 in office equipment and $3,600 in office supplies. Payment is due within 10 days.

Apr. 6 The company completed services for a client and immediately received $4,000 cash.

Apr. 9 The company completed a $6,000 project for a client, who must pay within 30 days.

Apr. 13 The company paid $11,600 cash to settle the account payable created on April 3.

Apr. 19 The company paid $2,400 cash for the premium on a 12-month insurance policy. The company's policy is record prepaid expenses in balance sheet accounts.

Apr. 22 The company received $4,400 cash as partial payment for the work completed on April 9.

Apr. 25 The company completed work for another client for $2,890 on credit.

Apr. 28 The company paid $5,500 cash in dividends.

Apr. 29 The company purchased $600 of additional office supplies on credit.

Apr. 30 The company paid $435 cash for this months utility bill.

Descriptions of items that require adjusting entries on April 30, 2015, follow.

a) On April 2, the company prepaid $9,000 cash for twelve months' rent for office space.

b) The balance in Prepaid insurance represents the premium paid for a 12-month insurance policy; the policy's coverage began on April 1.

c) Office supplies on hand as of April 30 total $1,200.

d) Straight-line depreciation of office equipment, based on a 5-year life and a $4,000 salvage value, is $500 per month.

e) The company has completed work for a client, but has not yet billed the $1,800 fee. f) Wages due to employees, but not yet paid, as of April 30 total $2,600.

Use the 3-step adjusting entry process to prepare the adjusting entry necessary to correctly report the revenue earned or the expense incurred: Step 1: Determine what the current account balance equals (See General Ledger tab) Step 2: Determine what the current account balance should equal. Step 3: Prepare an adjusting entry to get from Step 1 to Step 2.

General Ledger Account

Cash
Date	Debit	Credit	Balance
Apr 29			59,465
Apr 30		9,000	50,465

Accounts receivable
Date	Debit	Credit	Balance
Apr 29			4,490

Office supplies
Date	Debit	Credit	Balance
Apr 29			4,200
Apr 30	8,000		12,200

Prepaid insurance
Date	Debit	Credit	Balance
Apr 29			2,400

Prepaid rent
Date	Debit	Credit	Balance
Apr 29			9,000
Apr 30	9,000		18,000

Office equipment
Date	Debit	Credit	Balance
Apr 29			34,000
Apr 30	3,600		37,600

Accounts payable
Date	Debit	Credit	Balance
Apr 29			600
Apr 30		11,600	12,200

Common stock
Date	Debit	Credit	Balance
			106,000

Dividends
Date	Debit	Credit	Balance
			5,500

Services revenue
Date	Debit	Credit	Balance
Apr 29			12,890

Utilities expense
Date	Debit	Credit	Balance
Apr 29			435