Analysis reveals the following additional data

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Reference no: EM13513313

Terry Thomas opens the Green Thumb Lawn Care Company 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 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.

Reference no: EM13513313

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