Sal Strods opened a web consulting business called Landscape Dreams and recorded the following transactions in its first month of operations. April i Strods invests $95,000 cash along with office equipment valued at $33,508 in the company in exchange for common stock. April 2 The company prepaid $12,000 cash for twelve months' rent for office space. The company's policy is record prepaid expenses in balance sheet accounts. April 3 The company made credit purchases for $8,600 in office equipment and $3,900 in office supplies. Payment is due within 10 days. April 6 The company completed services for a client and immediately received $6,100 cash. April 9 The company completed a $13,500 project for a client, who must pay within 30 days. April 13 The company paid $12,500 cash to settle the account payable created on April 3. April 19 The company paid $3,600 cash for the premium on a 12-month insurance policy. The company's policy is record prepaid expenses in balance sheet accounts. April 22 The company received $5,100 cash as partial payment for the work completed on April 9. April 25 The company completed work for another client for $5,400 on credit. April 28 The company paid $6,200 cash in dividends. April 29 The company purchased $2,100 of additional office supplies on credit. April 30 The company paid $3,300 cash for this month's utility bill. Descriptions of items that require adjusting entries on April 30, follow. a) On April 2, the company prepaid $12,000 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 $1,500. d) Straight-line depreciation of office equipment, based on a 5-year life and a $6,100 salvage value, is $600 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 $3,300. Balance Sheet Impact on Income Income Statement General Ledger General Journal St of Retained Earnings Trial Balance Requirement For transactions a-f, review the unadjusted balance and prepare the adjusting entry necessary to correctly report the revenue earned or the expense incurred. Each adjustment is posted automatically to the general ledger and trial balance as soon as you click "record entry": View transaction list Journal entry worksheet On April 2, the company prepaid $12,000 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 Apr 30 Record entry Clear entry View general Journal The balance in Prepaid insurance represents the premium paid for a 12-month insurance policy; the policy's coverage began on April 1. Prepare the required adjusting entry, if any. Note: Enter debits before credits. Date Account Title Debit Credit Apr 30 Journal entry worksheet
