The company Green Lawn began operations on April 1. As of April 30, the trial balance showed the following balances in one of its selected accounts:

Accounts Balance

Prepaid insurance $ 3,600.00

Equipment $ 22,400.00

Notes to Pay $ 20,000.00

Sales for Services (cash not received) $ 4,200.00

Sales for Services $ 1,800.00

However, a detailed analysis of the accountant revealed the following additional information about this balance:

a) Prepaid Insurance is the cost of a 2-year insurance policy which became effective on April 1.

b) The depreciation of the equipment is $ 500.00 per month.

c) The note payable is dated April 1. And it is a note for 6 months at 12%.

d) Seven clients paid a package of $ 600.00 each for 6-month services, beginning in April. The company has already carried out and completed the services corresponding to the month of April.

e) Other services already completed for other clients but that were not registered as of April 30, totaled $ 1,500.00.

Instructions for the development of the task:

1. Prepare the adjusted records for the month of April with the information provided above.

2. Prepare an adjusted trial balance showing the following five

columns: Date; Account Name and Explanation of the Adjustment made; Ref .; Debit; and Credit.

3. Show the totals for all Debit and Credit accounts at the end of the balance sheet.

4. Show your calculations before completing the records.