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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 Strods Services began the year with the following balances: Cash, $$89,000$;

Accounts receivable, $$12,800$; and Common stock, $$101,800.$

January $1A.$ Strods invested $$22,800$ cash $in$ the company $in$ exchange for common stock.

January $2$ The company provided services $to$ a client and immediately received $$9,300$ cash.

January $3$ The company received $$12,800$ cash from a client $in$ advance for services $tobe$ provided next year.

January $4$ The company received $$9,100$ cash from a client $in$ partial payment $of$ accounts receivable.

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 $inan$ 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 $asof$ 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.

Financial Statement Impact Tab $Itis$ important $tobe$ able $to$ identify the impact each transaction has $on$ the financial

statements. For each $of$ the transactions, indicate the cumulative amount $of$ net income, total assets, total liabilities and

total equity that would appear $on$ the financial statements immediately after each transaction $is$ recorded.

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