Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please only attempt if you can solve the question with a proper explanation. Please do not copy from Chegg. Dave Harris opened a lawn service
Please only attempt if you can solve the question with a proper explanation. Please do not copy from Chegg.
Dave Harris opened a lawn service company on April 1, 2012. At April 30, the trial balance shows the following selected accounts shown below: Prepaid Insurance $3,600 Equipment $28,000 Notes Payable $20,000 Unearned Service Revenue $4,200 Service Revenue $1,800 Analysis of the accounts revealed the following additional data: 1. Prepaid insurance is the cost of a 2 year insurance policy, effective April 1 2. Depreciation on the equipment is $500 per month 3. The note payable is dated April 1. It is a 6-month 12% note 4. Seven customers paid for the company's 6 month's lawn service package of $600 beginning April. The company performed services for these customers in April 5. Lawn services provided other customers but not recorded at April 30 totaled $1,500 Instructions: Prepare the adjusting entries for the month of April and show your computations
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started