Develop an adjusted trial balance to measure changes in ledger accounts. The management of accounting...

90.2K

Verified Solution

Question

Accounting

image
Develop an adjusted trial balance to measure changes in ledger accounts. The management of accounting information and the recording of transactions The company "Green Lawn began operations on April 1. As of April 30, the trial balance showed the following balances in one of its selected accounts: Accounts Balance Prepaid insurance $ 3,600.00 Equipment $ 22,400.00 Notes to Pay $ 20,000.00 Sales for Services (cash not received) $ 4,200.00 Sales for Services $ 1,800.00 However, a detailed analysis of the accountant revealed the following additional information about this balance: a) Prepaid Insurance is the cost of a 2-year insurance policy which became effective on April 1. b) The depreciation of the equipment is $ 500.00 per month. c) The note payable is dated April 1. And it is a note for 6 months at 12%. d) Seven clients paid a package of $ 600.00 each for 6-month services, beginning in April. The company has already carried out and completed the services corresponding to the month of April. e) Other services already completed for other clients but that were not registered as of April 30 totaled $ 1,500.00 Instructions for the development of the task: 2. Prepare an adjusted trial balance by displaying the following five columns: Date; Account Name and Explanation of the Adjustment made; Ref.; Debit; and Credit. 3. Show the totals for all Debit and Credit accounts at the end of the balance sheet. 4. Show your calculations before completing the records

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students