Additional information follows (Adjustments needed at the end of April before preparing the financial statements): a. One-fourth of the $1,600 cash received from the city at the beginning of April for future mowing service has been earned in April. The $1,600 in Unearned Revenues represents four months of service (April through July). b. Insurance costing $300 providing coverage for six months (April through September) paid by Terrific Lawn at the beginning of April has been partially used in April. c. Mowers, edgers, rakes, and hand tools (equipment) have been used in April to generate revenues. The company estimates $300 in depreciation each year. d. Wages have been paid through April 28. Employees worked the last two days of April and will be paid in May. Wages accrue at $200 per day. e. An extra telephone line was installed in April at an estimated cost of $52, including hookup and usage charges. The bill will be received and paid in May. f. Interest accrues on the outstanding notes payable at an annual rate of 12 percent. The $3,700 in principal has been outstanding all month. g . The estimated income tax rate for Terrific Lawn is 35 percent