### Business Operations and Accounting Recording**Introduction to Linkworks Transactions:**Karla Tanner opened a web consulting business named Linkworks and undertook the following transactions in the first month of operations:- **April 1:** Tanner invested $135,000 in cash and equipment valued at $32,400 in the company, receiving common stock.- **April 2:** The company paid $7,200 cash for 12 months of office space rent, recorded as prepaid rent.- **April 3:** The company made credit purchases of office supplies and equipment worth $3,240 and $16,200 respectively, payable within 10 days.- **April 5:** Provided consulting services, receiving $2,000 in cash immediately.- **April 9:** Completed $18,000 worth of consulting work on credit.- **April 13:** Paid $11,800 cash for equipment purchased on April 3rd.- **April 19:** Paid the amount due for the office supplies purchased on April 3rd.- **April 20:** Completed additional services worth $7,900, immediately receiving cash.- **April 28:** Paid a $6,200 cash dividend.- **April 29:** Bought additional office supplies worth $1,080 on credit.- **April 30:** Paid $700 in cash for the month's utility bill.**Tasks:**1. Prepare general journal entries to record these transactions using titles: - Cash (101) - Accounts Receivable (106) - Office Supplies (124) - Prepaid Insurance (128) - Prepaid Rent (131) - Office Equipment (163) - Accounts Payable (201) - Common Stock (307) - Dividends (319) - Services Revenue (403) - Utilities Expense (690)2. Post the journal entries from part 1 to the ledger accounts.3. Prepare a trial balance as of April 30.**Journal Entry Recording:**The journal entry table below will help you record various transactions on respective dates, defining the affected accounts, debit, and credit figures.| No. | Date | Account Title | Debit | Credit ||-----|------------|-------------------------|--------|--------|| 1 | April 01 | No Transaction Recorded | | |**Posting to Ledger Accounts:**The ledger accounts should be organized and detailed as follows ---### Karla Tanner's Linkworks: Initial Transactions and Financial Documentation**Scenario:**Karla Tanner opened a Web consulting business called Linkworks and completed the following transactions in its first month of operations.---#### Transaction Records:- **April 1:** Karla Tanner invested $135,000 cash along with office equipment valued at $32,400 in the company in exchange for common stock.- **April 2:** The company prepaid $7,200 cash for 12 months' rent for office space. - *Hint: Debit Prepaid Rent for $7,200.*- **April 3:** The company made credit purchases of $6,200 in office equipment and $3,240 in office supplies. Payment is due within 10 days.- **April 6:** The company completed services for a client and immediately received $2,000 cash.- **April 9:** The company completed a $10,800 job for a client, who must pay within 30 days.- **April 13:** The company paid $19,440 cash to settle the account payable created on April 3.- **April 19:** The company paid $6,000 cash for the premium on a 12-month prepaid insurance policy. - *Hint: Debit Prepaid Insurance for $6,000.*- **April 22:** The company received $8,640 cash as partial payment for the work completed on April 9.- **April 25:** The company completed work for another client for $2,640 on credit.- **April 28:** The company paid a $6,320 cash dividend.- **April 29:** The company purchased $1,080 of additional office supplies on credit.- **April 30:** The company paid $700 cash for this month’s utility bill.---#### Requirements:1. **Prepare General Journal Entries:** - Use the following titles for the journal entries: - (101) Cash - (106) Accounts Receivable - (124) Office Supplies - (128) Prepaid Insurance - (131) Prepaid Rent - (163) Office Equipment - (201) Accounts Payable - (307) Common Stock - (319) Dividends - (403) Services Revenue - (690) Utilities Expense2. **Post Journal Entries to Ledger Accounts.

Journal entries recording is first step in accounting cycle process, under which atleast one account…

Karla Tanner opened a Web consulting business called Linkworks and completed the following transactions in its first month of operations. aner invested $135,000 cash along with office equipment valued at $32,400 in the company in exchange for Required 3 mon stock. April 2 The company prepaid $7,200 cash for 12 months' rent for office space. Hint: Debit Prepaid Rent for $7,200. April 3 The company made credit purchases for $16,200 in office equipment and $3,240 in office supplies. Payment is due within 10 days. April 6 The company completed services for a client and immediately received $2,000 cash. April 9 The company completed a $10,800 project for a client, who must pay within 30 days. April 13 The company paid $19,440 cash to settle the account payable created on April 3. April 19 The company paid $6,000 cash for the premium on a 12-month prepaid insurance policy. Hint: Debit Prepaid Insurance for $6,000. April 22 The company received $8,640 cash as partial payment for the work completed on April 9. April 25 The company completed work for another client for $2,640 on credit. April 28 The company paid a $6,200 cash dividend. April 29 April 30 The company purchased $1,080 of additional office supplies on credit. The company paid $700 cash for this month's utility bill. Required: 1. Prepare general Journal entries to record these transactions using the following titles: Cash (101); Accounts Receivable (106); Office Supplies (124); Prepaid Insurance (128); Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); Common Stock (307); Dividends (319); Services Revenue (403); and Utilities Expense (690). 2. Post the journal entries from part 1 to the ledger accounts. 3. Prepare a trial balance as of April 30.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q