Mike Sweet opens a web consulting business called Sweet Homes and completes the following transactions in its first month of operations 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. 40 points Apr 1 Sweet invested $137,000 cash along with office equipment valued at $35,500 in the company Apr. 2 The company prepaid $20,400 cash for twelve montha' rent for office space. The company's policy is record Skipped prepaid expenses in balance sheet accounts Apr. 3 The company made credit purchases for $9,900 in office equipment and $5,500 inffice supplies. Payment is due within 10 days 6 The company completed services for a client and immediately received $9,700 cash Apy eld 0 cash to settle the account payable ereaende poisey. The company's poliey is recond 9 The company completed a $15,500 project for a client, who must pay within 30 days. eBook Apr 13 The company paid $15,400 cash to settle the account payable created on April 3 Apr. 19 The company paid $6,960 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 $9,300 cash as partial payment for the work completed on April 9 Apr. 25 The company completed work for another client for $5,800 on credit Apr. 28 sweet withdrew $5,800 cash from the company for personal use Apr. 29 The company purchased $2,500 of additional office supplies on credit. Apr. 30 The company paid $2,500 cash for this month's utility bill. Print General Journal General Ledger Trial Balance Statement St Owners Equity Income Requirement Balance Sheet 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 Owner's Equity Tab Owner investments and withdrawals, as reported on the trial balance, appear on the statement of owner's equity. Review the statement of owner's equity and indicate how the statement of owner's equity 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 ending capital balance. Review the balance sheet and then indicate how the balance sheet is linked to the other financial statements General Journal General Ledger St Owners Equity Trial Balance Statement Income Requirement Balance Sheet Every journal entry must keep the accounting equation in balance. Prepare the journal entries fo Sweet Homes Company, entering the debits before the credits. Each transaction will automat Ledger and the Trial Balance as soon as you click "Record Entry". View transaction list Journal entry worksheet 2 3 4 6 Apr. 1) Sweet invested $137,000 cash along with office equipment valued at $35,500 in the company. Note: Enter debits before credits. Date Account Title Debit Credit Apr 01 Record entry Clear entry View general journal GeneralGeneral Journal Ledger Trial BalanceStatement IncomeSt Owners Requirement Balance Sheet Equity Each journal entry is posted automatically to the general ledger. Think of the general ledger as sorting all of your journal entries by account title. Click on any of the individual amounts to return to the underlying journal entry. General Ledger Account Data is not available until journal entries have been entered GeneralTrial Balance | Statement Ledger St Owners Equity General Income Balance Sheet Requirementrnal 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 journal entry that is out of balance. If you have an abnormal ending balance (indicated with brackets in the general ledger), you should review the journal entries that affected that account to ensure that the journal entries are correct. Show less Dates: Apr 01 to: Apr 30 Sweet Homes Company Trial Balance April 30, 2017 Debit Credit Account Title Total Genera Trial BalanceStatement Ledger Income St Owners Balance Sheet General Journal Requirement Equity 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. Sweet Homes Company Income Statement For Month ended April 30, 2017 Revenues Services revenue Expenses Utilities expense Total expenses Net income 0 Net income or loss is transferred from the income statement to the: IncomeSt Owners Balance Sheet Requirement Genera General Trial Balance Statement Ledger ournal Equity There are four subsets of equity: Investments by owners, withdrawals by owners, revenues and expenses. All four subsets are compiled in the Capital account at the end of the period. The ending capital balance is transferred to the equity section of the balance sheet. Sweet Homes Company Statement of Owner's Equity For Month ended April 30, 2017 M. Sweet, Capital, April 1, 2017 Add: Net income Less: Withdrawals by owner M. Sweet, Capital, April 30, 2017 0 Ending capital is transferred to the General ournal General Ledger St Owners Equity Trial Balance Statement Income Requirement Balance Sheet The balance sheet is the accounting equation: Assets = Liabilities + Equity. Each asset and liability account is reported separately on the balance sheet. Equity includes the ending capital balance from the Statement of Owner's Equity Sweet Homes Company Balance Sheet April 30, 2017 Assets Cash Accounts receivable Office supplies Prepaid insurance Prepaid rent Office equipment 0 0 Liabilities Accounts payable Equity M. Sweet, Capital 0 The balance in Sweet's capital account comes from the