The unadjusted trial balance for Garden Designs at its year end, April 30, 2017, is as follows:

Additional information:
1. $500 of the unearned revenue has been earned by April 30, 2017.
2. The equipment has an estimated useful life of eight years.
3. Interest on the note payable is due on the first day of each month for the previous month's interest. The note payable has a 6% annual interest rate.
Instructions
(a) Graden Designs prepares adjusting entries monthly. Prepare adjusting entries for the month ended April 30, 2017.
(b) Post the adjusting entries.
(c) Prepare closing entries for the year ended.

Transcribed Image Text:

GARDEN DESIGNS Trial Balance April 30, 2017 Debit Credit 11,430 8,780 4,875 24,000 Cash Accounts receivable Prepaid rent Equipment Accumulated depreciation-equipment Accounts payable Notes payable Unearned revenue T. Muzyka, capital T. Muzyka, drawings Service revenue Salaries expense Interest expense Depreciation expense $6,000 5,650 12,000 1,500 25,960 4,150 15,400 9,865 660 2,750 S66,510 $66,510