Saved e Karla Tanner opened a web consulting business called Linkworks and recorded the following transactions in its first month of operations. 1 Tanner invests $80,000 cash along with office equipment valued at $26,000 in the company in exchange for common stock. 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. 3 The company made credit purchases for $8,000 in office equipment and $3, 600 in office supplies. Payment is due within 10 days. 6 The company completed services for a elient and immediately received $4,000 cash. 9 The company completed a $6,000 project for a client, who must pay within 30 days. Apr. Apr. Apr. Apr. Apr. 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 inaurance 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 elient for $2,890 on eredit. 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 month'a utility bill. Descriptions of items that require adjusting entries on April 30, 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. Impact on Income General Income St Retained General Balance Sheet Requirement Trial Balance Farninas lournal Ledner Statement Descriptions of items that require adjusting entries on April 30, 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 Apr 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. Wages due to employees, but not yet paid, as of April 30 total $2,600. St Retained Eamings Impact on Income General General Journal Income Balance Sheet Trial Balance Requirement Statement Ledger 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 the unadjusted or adjusted balances. Trial Balance tab - You may view either the unadjusted or adjusted trial balance by choosing from the dropdown box below. Your choice will determine the reported values on the financial statement tabs. Income Statement tab- Use the drop-downs to select the accounts properly included on the income statement. The unadjusted or adjusted balances will appear for each account, based on your selection. Statement of Retained earnings tab- The unadjusted or adjusted balances will appear for each account, based on your selection. Balance Sheet tab - Use the drop-downs to select the accounts properly included on the balance sheet. The unadjusted or adjusted balances will appear for each account, based on your selection. Impact on Income tab -For each adjustment, indicate the income statement and balance sheet account affected, and the impact on net income. If an adjustment caused net income to decrease, enter the amount as a negative value. Net income before adjustments can be found on the income statement tab. (Hint: Select unadjusted on the dropdown.) 1 of 2 Next > Prev "record entry View transaction list Journal entry worksheet > 6 2 4 5 ek On April 2, the company prepaid $9,000 cash for twelve months' rent for office space. Prepare the required adjusting entry, if any. t Note: Enter debits before credits. Credit Debit Account Title Date Apr 30 View general journal Clear entry Record entry "record entry" View transaction list Journal entry worksheet record entry View transaction list Journal entry worksheet 1 2 3 4 5 6 Straight-line depreciation of office equipment, based on a 5-year life and a $4,000 salvage value, is $500 per month. 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 Prev 1 of 2 Next> View transaction list Journal entry worksheet "record entry". View transaction list Journal entry worksheet General Journal Impact on Income St Retained General Ledger Income Statement General Journal Balance Sheet Trial Balance Requirement Eamings You may view either the unadjusted or adjusted trial balance by choo choice will determine the reported values on the financial statement tabs. from the drop-down box below. Your Adjusted LINKWORKS Trial Balance April 30, 2019 Credit Debit Account Title 59,465 4,490 4,200 Cash Accounts receivable Office supplies Prepaid insurance Prepaid rent Office equipment Accounts payable 2,400 9,000 34,000 600 106,000 Common stock 5,500 Dividends Services revenue 12,890 Utlities expense 435 119,490 119,490 S Total General Ledger > Income Statement Company completed DUt nas not yet Dliea tne 1,ou0 ree. f Wages due to employees, but not yet paid, as of April 30 total $2,600. General Journal General Income Statement St Retained Impact on Income Requirement Trial Balance Balance Sheet Ledger Eamings You may view elther the unadjusted or adjusted trial balance by ch choice will determine the reported values on the financial statement tabs. ng from the drop-down box velow. Your Unadjusted LINKWORKS Trial Balance April 30, 2017 Account Title Debit Credit Cash $ 59,465 Accounts receivable 4,490 Office supplies Prepaid insurance Prepaid rent Office equipment 4,200 2,400 9,000 34,000 Accounts payable 600 Common stock 106,000 Dividends 5,500 Services revenue 12,890 Utilities expense 435 Total $ 119,490 S 119,490 Prev 1 Unadjusted LINKWORKS Balance Sheet 55 April 30, 2019 points ASSETS Current assets $ 0 eBook 0 0 0 Print 0 0 $ 0 Plant assets: 0 $ 0 LIABILITIES AND EQUITY Liabilities: $ 0 0 0 Equity 0 0 $ 0 St Retained Earnings Impact on Income 1 Adjusted LINKWORKS Balance Sheet 55 April 30, 2019 polnts ASSETS Current assets: $ 0 eBook 0 0 Print 0 0 $ 0 Plant assets: 0 $ LIABILITIES AND EQUITY Liabilities $ 0 0 0 Equity 0 General Journal General Income Statement St Retained Earnings Impact on Income Requirement Trial Balance Balance Sheet Ledger For each adjustment, Indicate the income statement and balance sheet ar adjustment caused net income to decrease, enter the amount as a negative value. Net income before adjustments can be found on the statement tab.(Hint: Select unadjusted on the drop-down.) t affected, and the impact et income. If a Show Unadjusted Account affecting the: Impact on net income Adjusting entry related to: Income Statement Balance Sheet a) Rent b) Insurance c) Office supplies d Depreciation e) Unbilled fees n Unpaid wages 0 Balance Sheet Nevt