Green Services was founded on January 2 and offers various technology services. During the first

quarter of operations, the following events occurred:

a. In January, Green provided and billed clients for $42,000 of consulting services. Clients paid

for these services in March.

b. In January, Green collected $25,000 from clients for services provided during the month.

c. In February, Green provided and billed clients for $45,000 of consulting services. Green

collected $12,000 in February and the remaining amount in March.

d. In March, Green Collected $34,000 from clients for services provided during the month and

billed clients an additional $21,000 for services provided.

e. Green pays employees at the end of each month for services provided. Monthly payroll was

$12,000, $13,000 and $15,000 in January, February and March respectively.

F. Green pays it utiity bills at the end of each month. Utilities bills totaled $800, $850 and $1,000

in January, February and March respectively.

G. Green hired an independent contractor who provided $1,200 of services in February. The

contractor was paid in March.

Required:

1. Provide journal entries to record the transactions using the accrual method of accounting.

2. Determine Green's net income for the first quarter using the accrual

method of accounting.

3. Prepare Green's Balance Sheet for the First Quarter.

4. Assuming March 31 is Green's year-end, prepare March 31 closing entries.

5. Prepare Green's March 31 statement of Retained Earnings.

6. Prepare Green's Statement March 31 statement of Cash Flows using the indirect method.

Use the Excel file template provided.

Worksheets are provided for problems 4, 5, 11, 12 and 13 Problem 4 Green Services, Inc. Journal, General Ledger, Financial Statements Use the templates below to provide the problem solution. Green Services, Inc. General Journal Instructions: Use the general journal below to record the transaction. Journal entry descriptions are not required. Posting of closing entries is not required. Date Account Description Debit Credit Green Services, Inc. General Ledger Cash Accounts Receivable 0 0 0 Accounts Payable 0 Wages Expense 0 0 0 0 0 0 Revenue 0 0 Utility Expense 0 0 0 Contractor Expense 0 0 0 0 0 0 Green Services, Inc. Financial Statements In proper form, provide the four basic financial statements. Use the multiple-step form for the Income statement. Provide a classified balance sheet. Use the indirect method when preparing the statement of cash flows