Apr. 6 The company completed services for a client and immediately received $4,0

Question

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 need help with the impact on income entry****

Explanation / Answer

(Here we don’t have opening balance of office supplies account therefore the difference between the expense incurred and closing balance is taken as expense incurred not recorded and following entry will be passed)

(Some T accounts cannot be completed without the opening balance of the accounts which is missing in the question itself.)

The journal entries for the month of April are as under: 6-Apr Cash $    4,000 Accounts receivable $    2,000 Fees earned $    6,000 (Being services rendered recorded after completion of work) 13-Apr Accounts payable $ 11,600 Cash $ 11,600 (Being cash paid for accounts payable created on April 3rd) Aprl 19 Prepaid Insurance $    2,400 Cash $    2,400 (Being prepaid insurance paid for 12 months) 22-Apr Cash $    4,400 Accounts receivable $    4,400 (Being partial payment received on the work completed on 9th April) 25-Apr Accounts receivable $    2,890 Fees earned $    2,890 (Being work completed for another client) 28-Apr Dividends $    5,500 Cash $    5,500 (Being paid cash in dividends) 29-Apr Office supplies $        600 Accounts payable $        600 (Being office supplies purchased on credit) 30-Apr Utility expense $        430 Cash $        430 (Being paid cash for this month utility bill) The journal entries for adjusting entries: a. Rent expense $        750 Prepaid Rent $        750 (Rent for the month is expensed) b. Insurance expense $        200 Prepaid Insurance $        200 (Insurance expense for the month recorded)

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