Analysis reveals the following additional data for the month: 1. Prepaid insurance is the cost of...

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Analysis reveals the following additional data for the month: 1. Prepaid insurance is the cost of a 12-month insurance policy that started April 1. 2. Supplies costing $225 were on hand on April 30. 3. The equipment is expected to have a useful life of four years. 4. The note payable is dated April 1. It is a six-month, 4% note with interest payable on the first of each month starting on May 1. 5. Seven customers paid for the company's six-month lawn service package of $600, beginning in April. These customers were served in April. 6. Laun services performed for other customers but not billed or recorded at April 30 totalled $1,500. Instructions a. Prepare the adjusting entries for the month of April. Show calculations. b. Prepare T accounts for the accounts affected by the adjusting entries. Post the adjusting entries to the T accounts. c. Prepare an adjusted trial balance at April 30, 2021. d. Prepare an income statement, statement of owner's equity, and balance sheet. Cash Prepaid insurance Supplies Equipment Notes payable Accounts payable Unearned revenue J. Szo, capital J. Sze. drawings Service revenue Rent expense Totals April 30, 2021 Debit $10,950 3,600 850 28,000 650 Credit $20,000 450 4,200 18,000 1,800 $44,450 Analysis reveals the following additional data for the month: 1. Prepaid insurance is the cost of a 12-month insurance policy that started April 1. 2. Supplies costing $225 were on hand on April 30. 3. The equipment is expected to have a useful life of four years. 4. The note payable is dated April 1. It is a six-month, 4% note with interest payable on the first of each month starting on May 1. 5. Seven customers paid for the company's six-month lawn service package of $600, beginning in April. These customers were served in April. 6. Laun services performed for other customers but not billed or recorded at April 30 totalled $1,500. Instructions a. Prepare the adjusting entries for the month of April. Show calculations. b. Prepare T accounts for the accounts affected by the adjusting entries. Post the adjusting entries to the T accounts. c. Prepare an adjusted trial balance at April 30, 2021. d. Prepare an income statement, statement of owner's equity, and balance sheet. Cash Prepaid insurance Supplies Equipment Notes payable Accounts payable Unearned revenue J. Szo, capital J. Sze. drawings Service revenue Rent expense Totals April 30, 2021 Debit $10,950 3,600 850 28,000 650 Credit $20,000 450 4,200 18,000 1,800 $44,450

Answer rating: 100% (QA)

Step 13 Adjusting entries as on 30April 2021 S No Particulars Debit Credit 1 Insurance Expense 300 To Prepaid Insurance 300 Insurance Expense for April 3600121 2 Supplies Expense 625 To Supplies 625 B... View the full answer