1. Terry Thomas opens the Green Thumb Lawn Care Company on April 1.At April 30, thetrial balance shows the following balances for selected accounts.
| Prepaid Insurance Don't use plagiarized sources. Get Your Custom Essay on prepaid insurance is the cost of a 2 year insurance policy effective april 1 337710 Get an essay WRITTEN FOR YOU, Plagiarism free, and by an EXPERT! Just from $10/Page | $ 3,600 |
| Equipment | 28,000 |
| Notes Payable | 20,000 |
| Unearned Revenue | 4,200 |
| Service Revenue | 1,800 |
Analysis reveals the following additional data.
1. Prepaid insurance is the cost of a 2 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 6 month, 12% note.
4. Seven customers paid for the company’s 6 months’ lawn service package of $600
beginning in April.The company performed services for these customers in April.
5. Lawn services provided other customers but not recorded at April 30 totaled $1,500.
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