This exercise continues the Lawlor Lawn Service, Inc., situation from Exercise 2-61 of Chapter 2. Start from the trial balance and the posted T-accounts that Lawlor Lawn Service prepared at May 31, 2012.
Requirements
1. Open these additional T-accounts: Accumulated depreciation—equipment; Depreciation expense—equipment; Supplies expense.
2. Mindy Lawlor determines there are $40 in Lawn supplies left at May 31, 2012.
Depreciation on the equipment was $30 for the month. Journalize any required adjusting journal entries.
3. Post to the T-accounts, keying all items by date.
4. Prepare the adjusted trial balance, as illustrated in Exhibit 3-8.