Question

Karla Tanner opens a web consulting business called Linkworks and recorded the following transactions in its first month of operations.
Apr. 1	Tanner invests $80,000 cash along with office equipment valued at $26,000 in the company in exchange for common stock.
Apr. 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.
Apr. 3	The company made credit purchases for $8,000 in office equipment and $3,600 in office supplies. Payment is due within 10 days.
Apr. 6	The company completed services for a client and immediately received $4,000 cash.
Apr. 9	The company completed a $6,000 project for a client, who must pay within 30 days.
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 insurance 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 client for $2,890 on credit.
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’s utility bill.
Descriptions of items that require adjusting entries on April 30, 2015, 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.

I solved the following (hopefully its correct), please solve the other tabs:

General Journal tab

Date Account Title Debit Credit Apr 30 Rent expense 750 750 Prepaid rent Apr 30 Insurance expense 200 200 Prepaid insurance Apr 30 office supplies expense 3,000 Office supplies 3,000 Apr 30 Depreciation expense 500 500 Accumulated depreciation Office equipment Apr 30 Accounts receivable 1,800 1,800 Services revenue Apr 30 Wages expense 2,600 Wages payable 2,600

General Ledger tab

Trial Balance tab

Create the following:

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. (I'm giving you the template)

Statement of Retained Earnings tab - The unadjusted or adjusted balances will appear for each account, based on your selection. Nothing to fill in on this

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.)

Answer 1

INCOME STATEMENT
Revenues	$	$
Service Revenue		14690
Expenses
Office Supplies expense	3000
Wages expense	2600
Rent Expense	750
Depreciation expense	500
Utilities Expense	435
Insurance expense	200
		7485
Net Income		7205

STATEMENT OF RETAINED EARNINGS	$	$
Retained earnings, April 1, 2015	0
Add: net inocme for April, 2015	7205
Available for distribution	7205
Less: Dividend	5500
Retained earnings, April 30, 2015		1705

BALANCE SHEET	$	$	$
ASSETS
CURRENT ASSETS
cash	59465
Accounts Receivable	6290
Office supplies	1200
Prepaid insurance	2200
Prepaid Rent	8250
Total Current Assets		77405
Office eqipment	34000
Less: Accumulated depreciation	500
Office Equipment Net		33500
Total Assets			110905
Liabilities & Shareholders' Equity
Current Liabilites
Accounts Payable	600
Wages payable	2600
Total Current Liabilities		3200
Shareholders' Equity
Common Stock	106000
Retained earnings	1705
Total shareholders' Equity		107705
Total Liabilities & Shareholders' Equity			110905

Adjusting Entry related to:	Account Affecting the		Impact on Net Income
	Income Statement	Balance Sheet
a) Rent	Rent Expense	Prepaid Rent	$ -750
b) Insurance	Insurance expense	Prepaid Insurance	$ -200
c) Office supplies	Office supplies expense	office supplies	$ -3,000
d) Depreciation	depreciation expense	accumulated depreciation	$ -500
e) Unbilled Fees	Service Revenue	Accounts Receivable	$ 1,800
f) Unpaid Wages	Wages expense	wages payable	$ -2,600
Net impact of adjusting entry			$ -5,250