Michael Masters opened a web consulting business called Business Mastery and recorded the following transactions in its first month of operations.

Apr.1Masters invests $86,000 cash along with office equipment valued at $39,500 in the company.Apr.2The 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.3The company made credit purchases for $8,900 in office equipment and $3,900 in office supplies. Payment is due within 10 days.Apr.6The company completed services for a client and immediately received $7,300 cash.Apr.9The company completed a $19,500 project for a client, who must pay within 30 days.Apr.13The company paid $12,800 cash to settle the account payable created on April 3.Apr.19The 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.22The company received $4,200 cash as partial payment for the work completed on April 9.Apr.25The company completed work for another client for $6,600 on credit.Apr.28Masters withdrew $5,800 cash from the company for personal use.Apr.29The company purchased $3,300 of additional office supplies on credit.Apr.30The company paid $2,500 cash for this month's utility bill.

Descriptions of items that require adjusting entries on April 30, 2017, 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 April 1.
• 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.

Journal entry worksheet 4\\ On April 2, the company prepaid $ 10, 200 cash for twelve months " rent For office space . Prepare the required adjusting Entry , if any* Note : Enter debits before credits . Date Account Title Debit Credit APT 30General Ledger ACCOUNT Cash Accounts receivable NO . Date Debit Credit Balance* NO . Date Debit Credit Balance* Apr 30 6.3, 320 Apr 30 21, 900 Office supplies Prepaid insurance NO . Date Debit Credit Balance NO . Date Debit Credit Balance* Apr 30 7, 200 Apr 30 2, 8 80 Prepaid rent Office equipment NO . Date Debit Credit Balance NO . Date Debit Credit Balance* Apr 30 10, 200 Apr 30 48, 400 Accounts payable M. Masters , Capital NO . Date Debit Credit Balance NO. Date Debit Credit Balance Apr 30 3. 300 Apr 30 125, 500 M. Masters , Withdrawals Services revenue NO . Date Debit Credit Balance NO . Date Debit Credit Balance* Apr 30 5, 800 Apr 30 3.3, 400 Utilities expense NO . Date Debit Credit Balance* APT 30 2, 500BUSINESS MASTERY* Trial Balance April 30, 2017 Account Title* Debit Credit `Cash $3, 320 ~\\Accounts receivable* 21, 900 -Office supplies 7, 200 _ Prepaid insurance* 2, 8 80 `Prepaid rent 10, 200 _office equipment 48, 400 _Accounts payable* 3, 300 {\\M. Masters , Capital 125, 500 {\\M . Masters , Withdrawals 5, 8:00 ~\\Services revenue 3.3, 400 _^Utilities expense* 2, 500 Total 162, 200|$ 162, 200Unadjusted BUSINESS MASTERY Income Statement For Month Ended April 30, 2017 REVENUES ! EXPENSES !Unadjusted BUSINESS MASTERY Statement of Owner's Equity* For Month Ended April 30, 2017 `. Masters , Capital , April 1 , 2017 Add : Investments by owner 125, 500 125, 500 125, 500 Less : Withdrawals by owner 5, 800 15, 8:001 M. Masters , Capital , April 30, 2017 1 19, 700Balance Sheet April 30, 2017 ASSETS Current assets " Plant assets :" LIABILITIES AND EQUITY* Liabilities ! Equity*Unadjusted Account affecting the* Impact on net Adjusting entry related to ! Income Statement Balance Sheet income a) Rent b ) Insurance C ) Office supplies dj Depreciation & ) Unbilled fees {} Unpaid wages