Question

5. Award: 17.50 points GL0303 - Extension of Problem 2-1A LO P1, P2, P3, P4, P5, P6 Mike Sweet opened a web consulting business called Sweet Homes and recorded the following transactions in its first month of operations Apr. 1 Sweet invest $2.000 cash along with office equipment valued at $35,500 in the company in exchange for common stock Apr. 2 The company prepaid $11.400 cash for telve months' rent for office space. The company's policy is record prepaid expenses in balance sheet accounts Apr. 3 The company made credit purchases for $8,100 in office equipment and $4,300 in office supplies. Payment is due within 10 days Apr. 6 The company completed services for a client and immediately received $7,300 cash Apr. 9 The company completed a $15,500 project for a client, who must pay within 30 days Apr 13 The company paid 512 400 cash to settle the account payable created on April 3. Apr 19 The company paid $3,300 cash for the premium on a 12-month insurance policy. The company's policy is record prepaid expenses in baie sheet counts Apr. 22 The company received $4,800 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 The company paid 55,800 cash in dividends. 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 bil Descriptions of items that require adjusting entries on April 30, follow. a) On April 2, the company prepaid $11.400 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 $1,900. d) Straight-line depreciation of office equipment, based on a 5-year life and a $9,100 salvage value is $575 per month e) The company has completed work for a client, but has not yet billed the $2.400 fee. Wages due to employees, but not yet paid, as of April 30 total $2,900. General Journal Requirement St Retained Earnings Impact on Trial Balance Balance Sheet Statement 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 "record entry". View transaction ist 1 On April 2, the company prepaid $11,400 cash for twelve months' rent for office space. Prepare the required adjusting entry, if any. 2 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. Credit 3 Office supplies on hand as of April 30 total $1,900. Prepare the required adjusting entry, if any. 4 Straight-line depreciation of office equipment, based on a 5-year He and a $9,100 salvage value, is $575 per month. Prepare the required adjusting entry, if any. Note: journal entry has been entered View Denar journal eneral Ledger >

unadjusted, adjusted , all the sheet need to fill out

Answer 1

Sweet Homes Adjusted Trial Balance For the month ended April 30, 2019
Account Titles	Debit	Credit
	$	$
Cash	68,640
Accounts Receivable	18,900
Office Supplies	1,900
Prepaid Insurance	3,080
Prepaid Rent	10,450
Office Equipment	43,600
Accumulated Depreciation		575
Accounts Payable		2,500
Wages Payable		2,900
Common Stock		127,500
Dividends	5,800
Service Revenue		31,000
Wages Expense	2,900
Rent Expense	950
Supplies Expense	4,900
Insurance Expense	280
Depreciation Expense	575
Utilities Expense	2,500
Totals	$ 164,475	$ 164,475

Sweet Homes Income Statement For the month ended April 30, 2019
Revenues
Service Revenue		$ 31,000
Expenses
Wages Expense	$ 2,900
Rent Expense	950
Supplies Expense	4,900
Insurance Expense	280
Depreciation Expense	575
Utilities Expense	2,500
Total Expenses		12,105
Net Income		$ 18,895

Sweet Homes Statement of Retained Earnings For the month ended April 30, 2019
Balance, April 1	$ 0
Net income for the period	18,895
Dividends	(5,800)
Balance, April 30	$ 13,095

Sweet Homes Balance Sheet April 30, 2019
Assets
Current Assets
Cash	$ 68,640
Accounts Receivable	18,900
Office Supplies	1,900
Prepaid Insurance	3,080
Prepaid Rent	10,450
Total Current Assets		$ 102,970
Plant Assets
Office Equipment	43,600
Accumulated Depreciation	(575)	43,025
Total Assets		$ 145,995
Liabilities
Current Liabilities
Accounts Payable	2,500
Wages Payable	2,900
Total Current Liabilities		5,400
Stockholders Equity
Common Stock	127,500
Retained Earnings	13,095
Total Stockholders Equity		140,595
Total Liabilities and Stockholders Equity		$ 145,995