Michael Masters opened a web consulting business called Business Mastery and recorded the following transactions in its first month of operations Apr. 1 Masters invests $86,000 cash along with office equipment valued at $39,500 in the company. Apr. 2. The company prepaid $10,200 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 $8.900 in office equipment and $3,900 in office supplies. Payment is due within 10 days. Apr. 6 The company completed services for a client and immediately received $7,300 cash. Apr. 9 The company completed a $19,500 project for a client, who must pay within 30 days. Apr. 13 The company paid $12,800 cash to settle the account payable created on April 3. Apr. 19 The company paid $2,880 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 $4,200 cash as partial payment for the work completed on April 9. Apr. 25 The company completed work for another client for $6,600 on credit. Apr. 28 Masters withdrew $5.800 cash from the company for personal use. Apr. 29 The company purchased $3,300 of additional office supplies on credit. Apr. 30 The company paid $2,500 cash for this month's utility bill. Descriptions of items that require adjusting entries on April 30, 2019, follow. a) On April 2, the company prepaid $10,200 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 Apr c) Office supplies on hand as of April 30 total $1,500. d) Straight-line depreciation of office equipment, based on a 5-year life and a $7,900 salvage value, is $675 per month e) The company has completed work for a client, but has not yet billed the $2,400 fee. f) Wages due to employees, but not yet paid, as of April 30 total $2,900. Income Requirement General Journal General Ledger Trial Balance St Owners Equity Balance Sheet Impact on Income Statement General Journal tab -For each transaction, review the unadjusted balance and prepare the adjusting entry necessary to correctly report the revenue earned or the expense incurred. After adjusting the accounts, review the general ledger and trial balance for accuracy. General Ledger tab - Each journal entry is posted automatically to the general ledger. Use the drop-down button to view tha sinartister or artistert halanrae Requirement General Journal General Ledger Trial Balance Income Statement St Owners Equity Use the drop-downs to select the accounts properly included on the income balances will appear for each account, based on your selection. Adjusted BUSINESS MASTERY Income Statement For Month Ended April 30, 2019 Revenues: Expenses: Net income $
