Question

Apr 30 The Purchased $600 of additional office splice credit mework Help GLO303 - Extension of Problem 2-1A Linkworks LO P1, P2, P3, P4, P5, P6 Karla Tanner opened a web consulting business called Linkworks and recorded the following transactions in its first month of operations Apr. 1 Tanner investa $80,000 cash along with office equipment valued at $26,000 in the company in exchange for common Apr 2 The company prepaid $9,000 cash for twelve months' rent for office space. The company's polley is record prepaid expenses in balance sheet accounts. Apr. • The company made credit purchases for 10,000 in office equipment and $3,600 in office supplies. Payment le due within 10 days Ape The company completed services for a client and immediately received 54,000 cash. 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 12-month insurance policy. The company's policy is record expenses in balance sheet accounts. Apr. 22 The company received $4,400 cash as partial payment for the work completed on April Apr. 25 The company completed work for another client for $2,890 on credit. Apr. 20 The company paid $5,500 cash in dividends. 29 company paid 435 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 $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 c) Office supplies on hand as of April 30 total $1.200 dj Straight-line depreciation of office equipment , based olPa 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. 1) Wages due to employees, but not yet paid, as of April 30 total $2,600 General General St Retained Requirement Income Impact on Journal Ledger Trial Balance Statement Earnings Balance Sheet Income 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 < Prex 12 of 1318 Next > MacBook Air On 000

Answer 1

The adjusting entries to be booked from a to f will be: (the image was a bit blurry but every effort has been made to pull the correct numbers)

Date a Debit ($) Credit ($) 6,750 6,750 b 1,600 1,600 с 3,000 3,000 Account Description Rent Expense Prepaid Rent (Rent expense booked for Apr to Dec period) Insurance Expense Prepaid Insurance (Salaries expense unpaid for the week) Supplies Expense Supplies (Supplied used during the period) Depreciation Expense Accumulated Depreciation - Equipment (Depreciation expense booked for the period) Accounts Receivables Service Revenue (Billing customers for services provided) Salaries & Wages Expense Salaries & Wages Payable (Salaries & Wages expense unpaid for the period) d 6,000 6,000 e 1,800 1,800 f 2,600 2,600

Workings & Rationale

Rationale Date а Debit ($) Credit ($) working 6,750 =9000*9/12 6,750 Rent expense will be booked for Apr to Decie 9 months b 1,600 =2400*8/12 Insurance expense needs to be booked for May to Dec le 8 months 1,600 с 3,000 =3600+600-1200 3,000 Supplies consumed during the period are booked as expense Account Description Rent Expense Prepaid Rent (Rent expense booked for Apr to Dec period) Insurance Expense Prepaid Insurance (Salaries expense unpaid for the week) Supplies Expense Supplies (Supplied used during the period) Depreciation Expense Accumulated Depreciation - Equipment (Depreciation expense booked for the period) Accounts Receivables Service Revenue (Billing customers for services provided) Salaries & Wages Expense Salaries & Wages Payable (Salaries & Wages expense unpaid for the period) d 6,000 =500*12 Depreciation expense has been booked at $500 per month 6,000 e 1,800 given Revenue earned during the period will increase and since customers have been billed this will create receivables for the company 1,800 f 2,600 given Salary expense incurred but not paid will be booked as an expense and a liability will be created 2,600

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