You are an accountant of GREENPLACE, a small business offering gardening and landscaping services. Before closing accounts for April 2018, you find three transactions that have not been recorded in the accounts as below:

• April 28, purchased supplies on credit $1200
• April 29, paid monthly office rent $3500
• April 30, received payment from a customer $5600

After recording the above transactions, below are the company's account balances at 30 April 2017:

Rent expense

$5,200

Accounts receivable

$35,500

Supplies expense

1,200

Cash

20,000

Long term Loan payable

45,000

Accumulated depreciation

25,200

Bartlett, Drawings

5,000

Accounts payable

25,800

Salary expense

18,600

Equipment

120,000

Salary payable

18,400

Advertising expense

7,500

Service revenue

65,000

Insurance expense

3,600

Supplies

4,500

Interest expense

3,880

Capital

29,780

Prepaid insurance

8,600

Depreciation expense

9,800

Unearned revenue

34,200

Requirements:

1. What is PALER? Based on PALER, identify the type of account for each account listed above. (4 marks)
2. Provide journal entries for transactions that have not been recorded. (6 marks)
3. From the account listed above, prepare the trial balance. (5 marks)
4. What are temporary and permanent accounts? From the account listed above, choose four permanent and four temporary accounts. (4 marks)
5. From the account listed above, choose two accounts with normal debit balances and two accounts with normal credit balances. (2 marks)
6. What are adjusting entries? Why do we have to do adjusting entries? Give five examples with journal entries. (10 marks)
7. Open T-accounts for all accounts listed above and post your examples of adjusting entries to the T-accounts. Provide your handwritten solution - scan or use your phone to copy and paste its image in your assignment. You can use a free scanning app such as Camscanner, OfficeLens, or Google Drive. (10 marks)
8. Using your T-accounts in the preceding question and Excel spreadsheet, prepare the ten column worksheet for the month ended 30 April. In the spreadsheet, you are required to have a data section separated from a report section. Use an IF function for Profit or Loss. Present your answers in both normal and formula views, showing columns and rows. (15 marks)
9. Using the spreadsheet, prepare three financial reports. Present your answers in both normal and formula views. (9 marks)
10. Describe the current ratio. Calculate the firm's current ratio, what does it tell you? (3 marks)
11. Evaluate the firm's debt ratio. (2 marks)