This question has been previsouly asked. HELP!1. On May 2, Bill signed a 1 year, 6% note for $3,000 associated with the purchase of a used truck for the business. The interest will be due with the principle of the note. 2. On May 2, Bill purchased a used truck for $5,000 to use for the lawn care business. He estimates a trade-in value of $500 at the end of the estimated five-year life of the truck. 3. On May 5, Bill purchased a lawn mower for $300 and an aerator for $500. He estimates $0 salvage value for both pieces of equipment and an estimated two-year life for both. 4. On May 6, Bill writes a $600 check for a six month insurance policy that expires October 31, 2014.

WORKSHEET Account Name CASH ACCOUNTS RECEIVABLE SUPPLIES PREPAID INSURANCE EQUIPMENT ACCUMULATED DEPRECIATION - EQUIPMENT ACCOUNTS PAYABLE NOTES PAYABLE INTEREST PAYABLE OWNER'S CAPITAL OWNER'S DRAWING LAWN SERVICE REVENUE SUPPLIES EXPENSE FUEL EXPENSE REPAIR AND MAINTENANCE EXPENSE ADVERTISING EXPENSE INSURANCE EXPENSE DEPRECIATION EXPENSE INTEREST EXPENSE INTEREST EXPENSE Totals Net Income Totals Trial Balance Debit Credit 15,575 200 600 7,800 3,500 20,000 1,500 2,700 400 75 50 26,200 26,200 Adjustments Debit Credit Adjusted Trial Balance Debit Credit Income Statement Debit Credit Balance Sheet Debit Credit INCOME STATEMENT OWNER'S EQUITY STATEMENT BALANCE SHEET GENERAL JOURNAL DATE DESCRIPTION GENERAL JOURNAL DATE DESCRIPTION Page POST. REF. DEBIT CREDIT Page POST. REF. DEBIT CREDIT GENERAL LEDGER Cash ACCOUNT DATE 2014 MAY ACCOUNT NO. DESCRIPTION 1 2 3 6 8 16 23 26 30 31 31 31 J1 J1 J1 J1 J1 J1 J1 J2 J2 J2 J2 J2 DATE DESCRIPTION 2014 MAY 16 23 30 31 CREDIT Debit 20,000 3,500 800 600 50 500 700 75 800 500 400 1,500 POST REF. DEBIT CREDIT DESCRIPTION 6 DATE POST REF. DEBIT CREDIT REF. DEBIT CREDIT POST REF. J1 J1 DESCRIPTION DESCRIPTION DEBIT CREDIT 7,000 800 DATE DESCRIPTION 2 Debit Credit 150 BALANCE Debit Credit 7,000 7,800 ACCOUNT NO. POST REF. DEBIT CREDIT 155 BALANCE Debit Credit ACCOUNT NO. POST REF. DEBIT CREDIT Notes Payable ACCOUNT 130 600 Accounts Payable DATE Credit BALANCE 600 Accumulated Depreciation - Equipment ACCOUNT Debit ACCOUNT NO. 2 3 DATE 120 BALANCE ACCOUNT NO. POST J1 DESCRIPTION ACCOUNT Credit 100 500 700 200 500 Equipment ACCOUNT 110 BALANCE Debit 100 400 200 Prepaid Insurance DATE 20,000 16,500 15,700 15,100 15,050 15,550 16,250 16,175 16,975 17,475 17,075 15,575 ACCOUNT NO. DESCRIPTION ACCOUNT Credit ACCOUNT NO. J1 J1 J2 J2 DATE 2014 MAY DEBIT Supplies ACCOUNT 2014 MAY REF. 101 BALANCE Accounts Receivable ACCOUNT 2014 MAY POST 201 BALANCE Debit Credit ACCOUNT NO. POST REF. J1 DEBIT CREDIT 3,500 220 BALANCE Debit Credit 3,500 Interest Payable ACCOUNT DATE DESCRIPTION DATE DESCRIPTION 1 ACCOUNT CREDIT DESCRIPTION ACCOUNT ACCOUNT DESCRIPTION DESCRIPTION DATE REF. DEBIT CREDIT 1,500 301 BALANCE Debit Credit 20,000 305 BALANCE Debit Credit 1,500 ACCOUNT NO. POST REF. DEBIT CREDIT 310 BALANCE Debit Credit ACCOUNT NO. POST REF. DEBIT CREDIT 401 BALANCE Debit Credit 600 1,100 1,000 600 1,700 2,700 ACCOUNT NO. POST REF. DEBIT CREDIT Fuel Expense 620 BALANCE Debit Credit ACCOUNT NO. DESCRIPTION 2014 MAY 31 ACCOUNT Credit ACCOUNT NO. POST Supplies Expense DESCRIPTION Debit 20,000 J1 J1 J2 DATE DATE CREDIT Lawn Service Revenue 2014 MAY 16 23 30 ACCOUNT DEBIT Income Summary DATE ACCOUNT REF. J2 DATE 225 BALANCE ACCOUNT NO. POST Owner's Drawing 2014 MAY 31 POST REF. J2 DEBIT CREDIT DESCRIPTION Credit 400 ACCOUNT NO. POST REF. DEBIT J2 CREDIT 640 BALANCE Debit 75 Credit 75 Advertising Expense DESCRIPTION 630 BALANCE Debit 400 Repair and Maintenance Expense 2014 MAY 26 DATE DEBIT J1 DATE ACCOUNT REF. Owner's Capital ACCOUNT 2014 MAY ACCOUNT NO. POST ACCOUNT NO. POST REF. DEBIT CREDIT 650 BALANCE Debit Credit 2014 MAY ACCOUNT DATE ACCOUNT DATE ACCOUNT DATE 8 J1 50 50 Insurance Expense DESCRIPTION ACCOUNT NO. POST REF. DEBIT CREDIT Depreciation Expense DESCRIPTION BALANCE Debit Credit ACCOUNT NO. POST REF. DEBIT CREDIT Interest Expense DESCRIPTION 660 670 BALANCE Debit Credit ACCOUNT NO. POST REF. DEBIT CREDIT 680 BALANCE Debit Credit POST CLOSING TRIAL BALANCE Debit Credit Credit Bill's Lawn Care Mini Practice Part 2 Bill has asked you to prepare financial statements for his first month of operation. The following information relates to the month of May, 2014. (Round all calculations to the nearest whole dollar) 1. On May 2, Bill signed a 1 year, 6% note for $3,500 associated with the purchase of a used truck for the business. The interest will be due with the principle of the note. 2. On May 2, Bill purchased a used truck for $7,000 to use for the lawn care business. He estimates a trade-in value of $500 at the end of the estimated five-year life of the truck. 3. On May 5, Bill purchased a lawn mower for $300 and an aerator for $500. He estimates $0 salvage value for both pieces of equipment and an estimated two-year life for both. 4. On May 6, Bill writes a $600 check for a six month insurance policy that expires October 31, 2014. Instructions: 1. Using the chart of accounts provided below, and the Excel template provided with this assignment, record the adjustments in the Worksheet, calculate the adjusted trial balance and complete the worksheet. 2. Prepare the Income Statement, Statement of Owner's Capital and Balance Sheet for Bill's Lawn Care for May, 2014 3. Prepare journal entries, in good form, to record the May adjusting entries. Explanations are optional. Start with Page 3 of the General Journal for the adjusting entries. 4. Post the journal entries to general ledger accounts. There are already transactions in the ledger for the month, you are adding to those transactions. 5. Prepare and post the closing entries for May, 2014. Start with Page 4 of the General Journal for the closing entries 6. Prepare a post-closing trial balance as of May 31, 2014, for Bill's Lawn Care. BILL'S LAWN CARE CHART OF ACCOUNTS ASSETS 101 Cash 110 Accounts Receivable 120 130 150 155 Supplies Prepaid Insurance Equipment Accumulated Depreciation - Equipment LIABILITIES 201 Accounts Payable 220 Notes Payable 225 Interest Payable OWNER'S EQUITY 301 Owner's Capital 305 Owner's Drawings 310 Income Summary REVENUES 401 Lawn Service Revenue EXPENSES 620 Supplies Expense 630 Fuel Expense 640 Repair and Maintenance Expense 650 Advertising Expense 660 Insurance Expense 670 Depreciation Expense 680 Interest Expense