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. 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. 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. On May 6, Bill writes a $600 check for a six month insurance policy that expires October 31, 2014. Instructions: Using the chart of accounts provided, and the Excel template provided with this assignment, record the adjustments in the Worksheet, calculate the adjusted trial balance and complete the worksheet. Prepare the Income Statement, Statement of Owner’s Capital and Balance Sheet for Bill’s Lawn Care for May, 2014 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. Post the journal entries to general ledger accounts. There are already transactions in the ledger for the month, you are adding to those transactions. 

Prepare and post the closing entries for May, 2014. Start with Page 4 of the General Journal for the closing entries. 

Prepare a post-closing trial balance as of May 31, 2014, for Bill’s Lawn Care. I need help preparing a worksheet, income statement, general ledgers, and a statement of owners equity.

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Trial Balance Debit 12860 200 500 00 5,000 Credit (16,000-2.000-800-600-50-500+700-60+800-600-160 1000) (100-400-200-500) Cash Accounts Recevatles Prepad Insurarce Equipment Truck Interest payable Note Payable Captol Drawings Serice Revenue Vartenance Experses Fuel Expenses Advertisement Expenzes Interest Experses Insurance Expenses ](3,000 x 0%)/ 12 for one month 15 3.000 15.000 1000 2700 50 150 50 15 100 20715 Jes005) Insurance for one month has expired 20715 Trial Balance Debit 12860 200 500 00 5,000 Credit (16,000-2.000-800-600-50-500+700-60+800-600-160 1000) (100-400-200-500) Cash Accounts Recevatles Prepad Insurarce Equipment Truck Interest payable Note Payable Captol Drawings Serice Revenue Vartenance Experses Fuel Expenses Advertisement Expenzes Interest Experses Insurance Expenses ](3,000 x 0%)/ 12 for one month 15 3.000 15.000 1000 2700 50 150 50 15 100 20715 Jes005) Insurance for one month has expired 20715

Answer rating: 100% (QA)

Answer a Journal Entry Date Particulars Dr Amt Cr Amt 1 Interest Expenses Dr 15 3000 X 6 X 112 To In... View the full answer