The management of accounting information and the recording of transactions The company "Green Lawn" began its operations on April 1. By April 30, the trial balance showed the following balances in some of its selected accounts: Accounts Balance Prepaid Insurance $3,600.00 Equipment $22,400.00 Notes Payable $20,000.00 Sales for Services (cash not received) $4,200.00 Sales for Services $1,800.00 However, a detailed accountant analysis 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 6-month package of $600.00 each for services, starting in April. The company has already performed and completed the services corresponding to the month of April. e) Other services already completed for other clients but that were not recorded as of April 30, totaled $1,500.00. Instructions for carrying out 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; Name of the Account and Explanation of the Adjustment made; Ref.; Debit; and Credit. 3. Show the totals of all Debit and Credit accounts at the end of the balance sheet. 4. Show your calculations before completing the records. Important: Please note that the adjustments were made for a single month (April). Perform your calculations and select the accounts to be adjusted carefully.

Complete the debit records first and then the indented credit records. Check that the total debits are exactly the same as the total credits.