Blackice Coffeeshop began operations April 1. At April 30, the trial balance shows the following balances for selected accounts:
Prepaid Insurance....................................$3,600
Equipment............................................28,000
Notes Payable.......................................20,000
Unearned Service Revenue.........................4,200
Service Revenue......................................1,800
Analysis reveals the following additional data.
1. Prepaid insurance is the cost of a two-year insurance policy, effective April 1.
2. Depreciation on the equipment is $500 per month.
3. The note payable is dated April 1. It is a six-month, 6% note.
4. Services delivered to customers but not recorded at April 30 totalled $1,500.
5. Provided $600 of services to customers who had paid the previous month.
Instructions
Prepare the adjusting entries for the month of April. Show calculations.