Question

Question #1: Use FSET to record adjusting entries on April 30th Terry Thomas and a group of investors incorporate the Green Thumb Lawn Care Corporation on April 1. At April 30, the trial balance shows the following balances for selected accounts. Prepaid Insurance $ 3,600 Equipment 28,000 Notes Payable 20,000 Unearned Service Revenue 4,200 Service Revenue 1,800 Analysis reveals the following additional data pertaining to these accounts. 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, 6% note. 4. Seven customers paid for the company's 6-month lawn service package of $600 per customer beginning in April. These customers received the first month of services in April. 5. Lawn services performed for other customers but not billed at April 30 totaled $1,500.

Please use the financial statement effects template below to answer the question. Thanks!

Answer 1

Financial statement effect

Transaction	Cash assets	+	Non Cash assets	=	Liabilities	+	Contrib Cap	+	Earned Cap	Revenue	-	Expense	=	Net income
1			-150						-150			+150		-150
2			-500						-500			+500		-500
3					100				-100			+100		-100
4					-4200				4200	4200				4200
5			1500						1500	1500				1500