GLO203 - (No Analysis Tab) - Based on Exercise 2-12 Prepare journal entries for each transaction and identify the financial statement impact of each entry. The financial statements are automatically generated based on the journal entries recorded. Assume Clark Services began the year with the following balances: Cash, $14,000; Accounts receivable, $10,300; and Common stock, $24,300. Jan. 1 Jean Clark invested $20,300 cash in the company in exchange for common stock. Jan. 2 The company provided services to a client and immediately received $1,800 cash. Jan. 3 The company received $10,300 cash from a client in payment for services to be provided next year. Jan. 4 The company received $4,100 cash from a client in partial payment of accounts receivable. Jan. 5 The company borrowed $6,500 cash from the bank by signing a note payable. Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet General Journal Tab - For each transaction, prepare the required journal entry on the General Journal tab. List debits before credits. General Ledger Tab - One of the advantages of general ledger software is that posting is done automatically. To see the detail of all transactions that affect a specific account, or the balance in an account at a specific point in time, click on the General Ledger tab. Trial Balance Tab - General ledger software also automates the preparation of trial balances. A trial balance lists each account from the General Ledger, along with its balance, either a debit or a credit. Total debits should always equal total credits. Income Statement Tab - The revenue and expense balances from the trial balance appear on the income statement, along with their balance as of the date selected. Review the income statement and indicate how the income statement is linked to the other financial statements. Statement of Retained Earnings Tab - Beginning retained earnings plus (minus) net income (loss) for the period less dividends. Review the statement of Retained earnings and indicate how the statement is linked to the other financial statements. Balance Sheet Tab - Each asset and liability account balance, as reported on the trial balance, appears on the balance sheet, along with the equity balance. Review the balance sheet and then indicate how the balance sheet is linked to the other financial statements. Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Every journal entry must keep the accounting equation in balance. Prepare the journal entries for each of the transactions of the Clark 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". View transaction list Journal entry worksheet Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet 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 an 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. Show less Dates: Jan 01 to: Jan 31 Clark Company Trial Balance January 05, 2018 Account Title Credit $ Debit 14,000 10,300 Cash Accounts receivable Common stock Total 24.300 24,300 $ 24,300 Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet An income statement reports the changes in equity attributable to the operation of the business during a specific time period. Revenues increase equity, and expenses decrease equity. Clark Company Income Statement For Month ended January 31, 2018 Revenues Services revenue Expenses Total expenses Net income Net income or loss is transferred from the income statement to the Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Review the statement of retained earnings and indicate how the statement is linked to the other financial statements. Clark Company Statement of Retained Earnings For Month ended January 31, 2018 Retained earnings, January 1, 2018 Add: Net income Less: Dividends Retained earnings, January 31, 2018 Ending retained earnings is transferred to the Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet The balance sheet is the accounting equation: Assets = Liabilities + Equity. Each asset and liability account is reported separately on the balance sheet. Equity includes common stock and the ending retained earnings amount from the Statement of Retained Earnings. Dates: Jan 01 to: Jan 31 Clark Company Balance Sheet January 31, 2018 Assets Cash $ 14,000 10,300 Accounts receivable Total assets $ 24,300 Liabilities Accounts payable Notes payable Unearned services revenue Total liabilities Equity 24,300 Common stock Retained earnings Total equity 24,300 Total liabilities and equity $ 24,300 The balance in retained earnings comes from the: