GTC CompanyThe GTC Company began operations on April 1. On April 30, the trial balance shows the following balances for selected accounts. Prepaid InsuranceP 3,600Equipment28,000Notes Payable20,000Unearned Service Revenue4,200Service Revenue1,800 Analysis reveals the following additional data.Prepaid insurance is the cost of a 2-year insurance policy, effective AprilDepreciation on the equipment is P500 perThe note payable is dated April 1. It is a 6-month, 12%Seven (7) customers paid for the company’s 6-month lawn service package of P600 beginning in The company performed services for these customers in April.Lawn services performed for other customers but not recorded on April 30, totaled P1,500.Requirement: Prepare the adjusting entries for the month of April. Show computations

Adjusting entries: Adjusting entries are those entries that are recorded at the end of the year, to…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 64E: Accounts Payable Sleek Ride, a company providing limo services, has a December 31 year-end date. For...

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GTC Company

The GTC Company began operations on April 1. On April 30, the trial balance shows the following balances for selected accounts.

Prepaid Insurance	P 3,600
Equipment	28,000
Notes Payable	20,000
Unearned Service Revenue	4,200
Service Revenue	1,800

Analysis reveals the following additional data.

Prepaid insurance is the cost of a 2-year insurance policy, effective April
Depreciation on the equipment is P500 per
The note payable is dated April 1. It is a 6-month, 12%
Seven (7) customers paid for the company’s 6-month lawn service package of P600 beginning in The company performed services for these customers in April.
Lawn services performed for other customers but not recorded on April 30, totaled P1,500.

Requirement: Prepare the adjusting entries for the month of April. Show computations

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