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tC | ià Secure l https//newoonnect mheducation.com/row/connect.html Project Help Save&Exft; Subm Check my w a web consulting business called Linkworks and recorded the following transactions in its first month of Apr. 1 Tanner invests s88,889 cash along kith office equipment valued at $26,888 in the company in exchange for common stock 2 The company prepaid $9,880 cash for twelve months rent for office space. The conpany's policy is record prepaid expenses 3 The company made credit purchases for s8,eee in office equipment and s3,e0 in office supplies. Payment is due within 18 9 The compeny completed a $6,8e0 project for a client, who must pay within 38 days. points in balance sheet accounts days- aBook completed services for a client and imnediately received $4, aee cash. Apr. 13 The company paid $11,600 cash to settle the account payable created on Raferences Apr 19 The company paid $2,400 cash expenses in balance sheet accounts Apr. 22 The company received $4,400 c e1 paynent for the work completed on April 9 company completed work for another client for s2,898 on credit 28 The company paid s5,s8e cash in dividends Apr. 29 The company purchased s689 of additional office supplies on credit Apr. 38 The company paic $435 cash for this month's utility bill Descriptions of items that require adjusting entries on April 30, 2017, follow. a) On Apri 2 the company prepaid $9,000 cash for twelve months rent for office space b) The balence in Prepaid insurence represents the premium paid for a 12-month insuranice policy the policy's coverage began on Apil ci 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. ej 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 General LedgerTrial Balance ncomeSt Retained Impact on Income Balance Sheet RequirementGeneral Journal StatementEarmings nd, . 1 at 2 Next > Tvpe here to searchExplanation / Answer
Answer 1. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1-Apr Cash 80,000.00 Office Equipment 26,000.00 Common Stock 106,000.00 (Record the issue of Common Stock) 2-Apr Prepaid Rent 9,000.00 Cash 9,000.00 (record the rent paid for 12 months) 3-Apr Office Equipment 8,000.00 Supplies 3,600.00 Accounts Payable 11,600.00 (Record the equipment & Supplies purch.) 6-Apr Cash 4,000.00 Service Revenue 4,000.00 (record the service revenue) 9-Apr Accounts Receivable 6,000.00 Service Revenue 6,000.00 (record the service revenue) 13-Apr Accounts Payable 11,600.00 Cash 11,600.00 (record the accounts payable paid) 19-Apr Prepaid Insurance 2,400.00 Cash 2,400.00 (Record the insurance paid) 22-Apr Cash 4,400.00 Accounts Receivable 4,400.00 (record the cash received) 25-Apr Accounts Receivable 2,890.00 Service Revenue 2,890.00 (record the service revenue) 28-Apr Dividends 5,500.00 Cash 5,500.00 (record the dividends paid) 29-Apr Supplies 600.00 Accounts Payable 600.00 (Record the Supplies purch.) 30-Apr Utilities Expenses 435.00 Cash 435.00 (record the utilities paid) Adjusting Entries a. Rent Expense 750.00 Prepaid Rent 750.00 (record the rent expense) b. Insurance Expense 200.00 Prepaid Insurance 200.00 (record the insurance expense) c. Supplies Expense 3,000.00 Supplies 3,000.00 (record the supplies expense) d. Depreciation Expense 500.00 Accumulated Depreciation - equip. 500.00 (record the depreciation expense) e. Accounts Receivable 1,800.00 Service Revenue 1,800.00 (record the service revenue) f. Salaries & Wages Expense 2,600.00 Salaries & Wages Payable 2,600.00 (record the salaries expense) Answer 2. Cash Accounts Receivable Supplies 1-Apr 80,000.00 9,000.00 2-Apr 9-Apr 6,000.00 4,400.00 22-Apr 3-Apr 3,600.00 6-Apr 4,000.00 11,600.00 13-Apr 25-Apr 2,890.00 29-Apr 600.00 22-Apr 4,400.00 2,400.00 19-Apr 5,500.00 28-Apr 435.00 30-Apr Unadj. Bal. 59,465.00 Unadj. Bal. 4,490.00 Unadj. Bal. 4,200.00 e. 1,800.00 3,000.00 c. Adj. Bal. 59,465.00 Adj. Bal. 6,290.00 Adj. Bal. 1,200.00 Prepaid Insurance Prepaid Rent Office Equipment 19-Apr 2,400.00 2-Apr 9,000.00 1-Apr 26,000.00 3-Apr 8,000.00 Unadj. Bal. 2,400.00 Unadj. Bal. 9,000.00 Unadj. Bal. 34,000.00 200.00 b. 750.00 a. Adj. Bal. 2,200.00 Adj. Bal. 8,250.00 Adj. Bal. 34,000.00 Accounts Payable Common Stock Dividends 13-Apr 11,600.00 11,600.00 3-Apr 106,000.00 1-Apr 28-Apr 5,500.00 600.00 29-Apr Unadj. Bal. 600.00 Unadj. Bal. 106,000.00 Unadj. Bal. 5,500.00 Adj. Bal. 600.00 Adj. Bal. 106,000.00 Adj. Bal. 5,500.00 Service Revenue Utilities Expenses Rent Expense 4,000.00 6-Apr 30-Apr 435.00 Unadj. Bal. - 6,000.00 9-Apr a. 750.00 2,890.00 25-Apr Unadj. Bal. 12,890.00 Unadj. Bal. 435.00 Adj. Bal. 750.00 1,800.00 e. Adj. Bal. 14,690.00 Adj. Bal. 435.00 Adj. Bal. 750.00 Insurance Expense Supplies Expense Depreciation Expense Uaadj. Bal. - Uaadj. Bal. - Uaadj. Bal. - b. 200.00 c. 3,000.00 d. 500.00 Adj. Bal. 200.00 Adj. Bal. 3,000.00 Adj. Bal. 500.00 Accumulated Depreciation - Equip. Salaries & Wages Expense Salaries & Wages Payable Uaadj. Bal. - Uaadj. Bal. - Uaadj. Bal. - 500.00 d. f. 2,600.00 2,600.00 f. Adj. Bal. 500.00 Adj. Bal. 2,600.00 Adj. Bal. 2,600.00 Answer 3. Unadjusted Trial Balance As of April 30 Dr. Amt. Cr. Amt. Cash 59,465.00 Accounts Receivable 4,490.00 Supplies 4,200.00 Prepaid Insurance 2,400.00 Prepaid Rent 9,000.00 Office Equipment 34,000.00 Accounts Payable 600.00 Common Stock 106,000.00 Dividends 5,500.00 Service Revenue 12,890.00 Utilities Expenses 435.00 Total 119,490.00 119,490.00 Answer 4. Adjusted Trial Balance As of April 30 Dr. Amt. Cr. Amt. Cash 59,465.00 Accounts Receivable 6,290.00 Supplies 1,200.00 Prepaid Insurance 2,200.00 Prepaid Rent 8,250.00 Office Equipment 34,000.00 Accounts Payable 600.00 Common Stock 106,000.00 Dividends 5,500.00 Service Revenue 14,690.00 Utilities Expenses 435.00 Rent Expense 750.00 Insurance Expense 200.00 Supplies Expense 3,000.00 Depreciation Expense 500.00 - Accumulated Depreciation - Equip. 500.00 Salaries & Wages Expense 2,600.00 Salaries & Wages Payable 2,600.00 Total 124,390.00 124,390.00 Answer 5. Income Statement For the Month ended April 30 Revenue Service Revenue 14,690.00 Expense Utilities Expenses 435.00 Rent Expense 750.00 Insurance Expense 200.00 Supplies Expense 3,000.00 Depreciation Expense 500.00 Salaries & Wages Expense 2,600.00 7,485.00 Net Income 7,205.00 Answer 6. LINKWORKS Statement of Retained Earnings For the Month ended April 30 Beginning Balance - Net Income 7,205.00 Dividends (5,500.00) Ending Balance 1,705.00 Answer 7. LinkWorks Balance Sheet April 30, 2017 Assets Current Assets Cash 59465 Accounts Receivable 6290 Supplies 1200 Prepaid Insurance 2200 Prepaid Rent 8250 77,405.00 Property, Plant & Equipment Office Equipment 34000 Accumulated Depreciation - Equip. (500.00) 33,500.00 Total Assets 110,905.00 Liabilities & Stockholders' Equity Liabilities Current Liabilities Accounts Payable 600.00 Salaries & Wages Payable 2,600.00 3,200.00 Other Liabilities - Total Liabilities 3,200.00 Stockholders' Equity Common Stock 106,000.00 Retained Earnings 1,705.00 Total Stockholders' Equity 107,705.00 Total Liabilities & Stockholders' Equity 110,905.00
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