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Please use the financial statement effects template below to answer the question. Thanks! Question #1: Use FSET to record adjusting entries on April 30th Terry
Please use the financial statement effects template below to answer the question. Thanks!
Question #1: Use FSET to record adjusting entries on April 30th Terry Thomas and a group of investors incorporate the Green Thumb Lawn Care Corporation on April 1. At April 30, the trial balance shows the following balances for selected accounts. Prepaid Insurance $ 3,600 Equipment 28,000 Notes Payable 20,000 Unearned Service Revenue 4,200 Service Revenue 1,800 Analysis reveals the following additional data pertaining to these accounts. 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, 6% note. 4. Seven customers paid for the company's 6-month lawn service package of $600 per customer beginning in April. These customers received the first month of services in April. 5. Lawn services performed for other customers but not billed at April 30 totaled $1,500. BALANCE SHEET INCOME STATEMENT Transaction Liabilities Revenues Cash Assets Net Income Non cash Assets Expenses Contrib . . EarnedStep by Step Solution
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