This is the problem that we have used as a demonstration in our lessons. The following is the post-closing trial balance showing the account balances as of April 30, 2004. Spring Garden Lawn Care Incorporated entered

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This is the problem that we have used as a demonstration in our lessons. The following is the post-closing trial balance showing the account balances as of April 30, 2004. Spring Garden Lawn Care Incorporated entered into the following transactions during the month of May. Transactions for the month of May 1. Purchased office supplies on credit, $600. 2. Provided lawn care services to clients and received $16,000 in cash. 3. Provided lawn care services to clients on credit. Fees of $8,000 will be received in June. 4. Received $3,000 in cash from several clients in advance for services to be rendered in the future. 5. Paid $1,200 in cash for May advertising. 6. Paid $5,700 in cash for employee wages. Instructions 1. Record the May transactions into a journal. 2. Post the transactions to T ledger accounts(Note: When you are posting transactions to the ledgers, make sure you start with account balances from post-closing trial balance. For example: What would happen to cash balance if you were to post $5000 debit? The cash balance would be: 25,300 +5,000=$30, 300) 3. Prepare a trial balance. 4. Make adjusting entries for the following: A1-mount of office supplies left as of May 31 is $700 A2-$1,700 of the unearned fees earned as of May 31 A3-Expired insurance for the month A4-Expired rent for the month A5-Depreciation of the building for the month 5. Post the adjusting entries to appropriate ledgers. 6. Prepare adjusted trial balance. 7. Prepare income statement, statement of retained earnings, and balance sheet. Note: Use the demonstration problem format as shown for Spring Garden Lawn Care Incorporated in LESSONS 2 and 3. Make sure EACH transaction NUMBERED. Spring Garden Lawn Care Incorporated Post-Closing Trial Balance As of April 30, 20XX Accounts Debits Credits Cash 25,300 Accounts Receivable 11,300 Office Supplies 500 Prepaid Insurance 3,300 Prepaid Rent 46,000 Office Building 80,000 Accumulated Depreciation $400 Accounts Payable 2,000 Unearned Fees 1,500 Capital Stock 150,000 Retained Earnings 12,500..

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