Question

Question:Karla Tanner opened a web consulting business called Linkworks and completed the following transactions in its first month of operations.

Apr. 1 Tanner invested \(80,000 cash along with office equipment valued at \)26,000 in the company in exchange for common stock.

2 The company prepaid \(9,000 cash for 12 months’ rent for office space. (Hint:Debit Prepaid Rent for \)9,000.)

3 The company made credit purchases for \(8,000 in office equipment and \)3,600 in office supplies. Payment is due within 10 days.

6 The company completed services for a client and immediately received \(4,000 cash.

9 The company completed a \)6,000 project for a client, who must pay within 30 days.

13 The company paid \(11,600 cash to settle the account payable created on April 3.

19 The company paid \)2,400 cash for the premium on a 12-month insurance policy. (Hint:Debit Prepaid Insurance for \(2,400.)

22 The company received \)4,400 cash as partial payment for the work completed on April 9.

25 The company completed work for another client for \(2,890 on credit.

28 The company paid \)5,500 cash in dividends.

29 The company purchased \(600 of additional office supplies on credit.

30 The company paid \)435 cash for this month’s utility bill.

Required

Prepare a trial balance as of April 30.

Short answer

The total of trial balance matches at $119,490.

Step-by-step solution

No. of accounts

In the given case, there are 10 accounts in the general ledger out of the 7 accounts are having debit balances and the rest 3 of them are having a credit balance. These accounts have been listed in the trial balance in step 2.

Trial Balance

Karla Tanner
Trial Balance
April 30
	Debit	Credit
Cash	$ 59,465
Accounts Receivables	4,490
Office Supplies	4,200
Prepaid Insurance	2,400
Prepaid Rent	9,000
Office Equipment	34,000
Accounts Payable		$ 600
Common Stock		106,000
Dividends	5,500
Service Revenues		12,890
Utility Expenses	435
Total	$ 119,490	$ 119,490