- Karla Tanner Opens A Web Consulting Business Called Linkworks And Completes The Following Transactions In Its First Mont 1 (92.08 KiB) Viewed 37 times
Requirement General Journal View transaction list 1 Journal entry worksheet Every journal entry must keep the accounting equation in balance. Prepare the journal entries for each of the transactions of the Linkworks Company, entering the debits before the credits. Each transaction will automatically be posted to the General Ledger and the Trial Balance as soon as you click "Record Entry". 2 Date April 01 General Ledger 3 Note: Enter debits before credits. Trial Balance 4 5 Income Statement 6 Account Title 7 8 April 1) Tanner invested $80,000 cash along with office equipment valued at $26,000 in the company in exchange for common stock. St Retained Earnings Debit 12 Balance Sheet FS Impact Credit
Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings General Ledger Account < General Journal Each journal entry is posted automatically to the general ledger. Think of the general ledger as sorting all of your journal entries by account title. Click on any of the individual amounts to return to the underlying journal entry. Balance Sheet Data is not available until journal entries have been entered. Trial Balance > FS Impact
Requirement General Journal Total General Ledger Trial Balance Account Title Income Statement The trial balance is a listing of all account balances from the General Ledger as of a specific date. Click on any individual account balance to return to the General Ledger. The trial balance is only as accurate as the underlying journal entries. If the total debits do not equal the total credits, you must have a journal entry that is out of balance. If you have abnormal ending balance (indicated with brackets in the general ledger), you should review the journal entries that affected that account to ensure that the journal entries are correct. < General Ledger St Retained Earnings Linkworks Company Trial Balance April 30, 2021 Balance Sheet FS Impact Dates: April 01 Income Statement > $ Debit Show less to: April 30 0 $ Credit
Requirement Revenues Services revenue Expenses Utilities expense General Journal Total expenses Net income General Ledger Trial Balance An income statement reports the changes in equity attributable to the operation of the business during a specific time peri Revenues increase equity, and expenses decrease equity. Linkworks Company Income Statement For Month Ended April 30, 2021 $ Net income or loss is transferred from the income statement to the: Income Statement < Trial Balance 0 St Retained Earnings $ Balance Sheet 0 0 FS Impact St Retained Earnings >
Requirement General Journal General Ledger Retained earnings, April 1, 2021 Add: Net income Less: Dividends Retained earnings, April 30, 2021 Trial Balance For Month Ended April 30, 2021 Ending retained earnings is transferred to the: Review the statement of retained earnings and indicate how the statement is linked to the other financial statements. Linkworks Company Statement of Retained Earnings $ Income Statement Income Statement St Retained Earnings 0 0 0 Balance Sheet FS Impact Balance Sheet >
Cash Accounts receivable Office supplies Prepaid insurance Prepaid rent Office equipment Accounts payable Common stock Retained earnings Linkworks Company Balance Sheet April 30, 2021 Assets Liabilities Equity The balance in retained earnings comes from the: $ $ 0 0 0 0 0 0 0 0 0
Requirement General Journal General Ledger Transaction: Trial Balance Where can you go to find each of your answers? April 1 Tanner invested $80,000 cash along with office equipment valued at $26,000 in the company in exchange for common stock. The financial statements report the cumulative impact of all transactions recorded as of the financial statement date. Input the cumulative amount of a) Net Income (Loss), b) Total Assets, c) Total Liabilities, and d) Total Equity that would be reported on the financial statements immediately after each transaction is recorded. (Hint: You can check your work by selecting the date on the trial balance tab.) The first two transactions are completed for you! April 2 The company prepaid $9,000 cash for 12 months' rent for office space. The company's policy is record prepaid expenses in balance sheet accounts. April 3 The company made credit purchases for $8,000 in office equipment and $3,600 in office supplies. Payment is due within 10 days. April 6 The company completed services for a client and immediately received $4,000 cash. April 9 The company completed a $6,000 project for a client, who must pay within 30 days. April 13 The company paid $11,600 cash to settle the account payable created on April 3. April 19 The company paid $2,400 cash for the premium on a 12-month prepaid insurance policy. The company's policy is to record prepaid expenses in balance sheet accounts. April 22 The company received $4,400 cash as partial payment for the work completed on April 9. April 25 The company completed work for another client for $2,890 on credit. April 28 The company paid $5,500 cash in dividends. April 29 The company purchased $600 of additional office supplies on credit. April 30 The company paid $435 cash for this month's utility bill. Income Statement $ Net Income Total Assets < Balance Sheet St Retained Earnings 0 0 $ 106,000 $ 106,000 Balance Sheet FS Impact Total Liabilities FS Impact > Total Equity 0 $ 106,000 0 106,000 Show less