Bills Lawn Care Module 2 Mini Practice Problem Bill has asked you to prepare financial statements for his first month of operation. The following information relates to the month of May, 2014. (Round all calculations to the nearest whole dollar) On May 2, Bill signed a 1 year, 6% note for $3,000 associated with the purchase of a used truck for the business. The interest will be due with the principle of the note. On May 2, Bill purchased a used truck for $5,000 to use for the lawn care business. He estimates a trade-in value of $500 at the end of the estimated five-year life of the truck. On May 5, Bill purchased a lawn mower for $300 and an aerator for $500. He estimates $0 salvage value for both pieces of equipment and an estimated two-year life for both. On May 6, Bill writes a $600 check for a six month insurance policy that expires October 31, 2014. Instructions: Using the chart of accounts provided, and the Excel template provided with this assignment, record the adjustments in the Worksheet, calculate the adjusted trial balance and complete the worksheet. Prepare the Income Statement, Statement of Owners Capital and Balance Sheet for Bills Lawn Care for May, 2014 Prepare journal entries, in good form, to record the May adjusting entries. Explanations are optional. Start with Page 3 of the General Journal for the adjusting entries. Post the journal entries to general ledger accounts. There are already transactions in the ledger for the month, you are adding to those transactions. Prepare and post the closing entries for May, 2014. Start with Page 4 of the General Journal for the closing entries Prepare a post-closing trial balance as of May 31, 2014, for Bills Lawn Care. I need help preparing a worksheet, income statement, general ledgers, and a statement of owners equity.

Book1 Microsot Excel Trial Balance Debit Credit 16,000-2 000 800-80050-500+700-60+900 600-160-1000) 100.400.200.500 Prepad Insrarce Equpmert Truck 15-13000 K e%)/ 12for one month 10 1,000 2700 12 13 Varienance Expeses uel Expenses 150 50 16 t6 6006) Insurance for one month has espired 2071520715 18 10 20 21 23 24