FloralLawn Com began operations on April 1. At April 30, the trial balance shows the following balances for selected accounts. Cash 10500 Supplies Prepaid Insurance Equipment Notes Payable Unearned Service Revenue 2500 4800 32500 20000 4200 Service Revenue 2400 Analysis reveals the following additional data. 1. Prepaid insurance is the cost of a 1-year insurance policy, effective April 1. 2. Depreciation on the equipment is $3600 per year. 3. The note payable is dated April 1. It is a 6-month, 14% note. 4. Seven customers paid for the company's 6-month lawn service package of $600 beginning in April. The company performed services for these customers in April. 5. Lawn services performed for other customers but not recorded at April 30 totaled 1500 6. Supplies on hand at the end of the month is 350 Instructions Prepare the adjusting entries for the month of April. Show computations.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Question 03
FloralLawn Com began operations on April 1. At April 30, the trial
balance shows the following balances for selected accounts.
Cash
10500
Supplies
Prepaid Insurance
Equipment
Notes Payable
Unearned Service Revenue
Service Revenue
2500
4800
32500
20000
4200
2400
Analysis reveals the following additional data.
1. Prepaid insurance is the cost of a 1-year insurance policy, effective April 1.
2. Depreciation on the equipment is $3600 per year.
3. The note payable is dated April 1. It is a 6-month, 14% note.
4. Seven customers paid for the company's 6-month lawn service package of $600 beginning
in April. The company performed services for these customers in April.
5. Lawn services performed for other customers but not recorded at April 30 totaled 1500
6. Supplies on hand at the end of the month is 350
Instructions
Prepare the adjusting entries for the month of April. Show computations.
Transcribed Image Text:Question 03 FloralLawn Com began operations on April 1. At April 30, the trial balance shows the following balances for selected accounts. Cash 10500 Supplies Prepaid Insurance Equipment Notes Payable Unearned Service Revenue Service Revenue 2500 4800 32500 20000 4200 2400 Analysis reveals the following additional data. 1. Prepaid insurance is the cost of a 1-year insurance policy, effective April 1. 2. Depreciation on the equipment is $3600 per year. 3. The note payable is dated April 1. It is a 6-month, 14% note. 4. Seven customers paid for the company's 6-month lawn service package of $600 beginning in April. The company performed services for these customers in April. 5. Lawn services performed for other customers but not recorded at April 30 totaled 1500 6. Supplies on hand at the end of the month is 350 Instructions Prepare the adjusting entries for the month of April. Show computations.
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