Question
The Green Thumb Lawn Care Company began operations on April 1. At April 30, the trial balance shows the following balances for selected accounts. Lawn
The Green Thumb Lawn Care Company began operations on April 1. At April 30, the trial balance shows the following balances for selected accounts. Lawn Care company Trail Balance April 30, 2020 Cash Accounts Receivable Supplies Prepaid Insurance Debit $10,000 Credit 7,000 2,600 3,600 Equipment 28,000 Notes Payable $20,000 Unearned Service Revenue 4,200 Owner, Capital 50,200 Service Revenue 1,800 Salaries and Wages Expense 7,000 Rent Expense 18,000 $76,200 $76,200 Analysis reveals the following additional data: 1. Prepaid insurance is the cost of a 2-year insurance policy, effective April 1. 2. The equipment has a 7-year life with no salvage value. 3. On April 30, $900 of supplies were on hand. 4. Utility expenses incurred but not paid prior to April 30 totaled $400. 5. $1,000 of unearned service revenue remains unearned at the end of the month. Instructions: Prepare the adjusting entries for the month of April. Show computations
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