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The Green Thumb Lawn Care Inc. began operating on April 1in China. At April 30, the trial
balance shows the following balances for selected accounts. (Amounts are in Chinese yuan.)
Y 36,000
Prepaid Insurance
Equipment
280,000
Notes Payable
200,000
Unearned Revenue
42,000
Service Revenue
18,000
Analysis reveals the following additional data.
GENERAL JOURNAL
Credit
Adjusting Entries
Insurance Expense
Prepaid Insurance
(To record insurance expired:
Y36,000 + 24 = Y1,500 per month)
Depreciation Expense
Accumulated Depreciation-Equipment
(To record monthly depreciation)
1,500
Action Plan
Note that adjustments are being
made for one month.
Make corr~putationscarefully.
Select account titles carefully.
Make sure debits are made first
and credits are indented.
Check that debits equal credits
for each entry.
Interest Payable
(To record interest on notes payable:
Y200,000 x 12% x 1/12 = Y2,OOO)
Service Revenue
(To record service revenue: Y6,000 + 6 = Y1,000;
Y1,000 per month X 7 = Y7,OOO)
Service Revenue
(To record revenue for services provided)
-PLUS