Solved: The unadjusted trial balance for Forever Green

Landscaping on August
The unadjusted trial balance for Forever Green Landscaping on August

The unadjusted trial balance for Forever Green Landscaping on August 31, 2016, follows

Required

1. Enter the unadjusted trial balance in the first two columns of a ten-column work sheet.

2. Enter the necessary adjustments in the appropriate columns of the work sheet for each of the
following:

a. A count of the supplies on hand at the end of August reveals a balance of $730.

b. The company paid $4,200 in cash on May 1, 2016, for a two-year insurance policy.

c. The equipment has a four-year estimated useful life and no salvage value.

d. The buildings have an estimated useful life of 30 years and no salvage value.

e. The company leases space in its building to another company. The agreement requires the
tenant to pay Forever Green $700 on the 10th of each month for the previous month's rent.

f. Wages and salaries earned by employees at the end of August but not yet paid amount to
$3,320.

The company signed a six-month promissory note on August 1, 2016. Interest at an annual rate
of 12% and the principal amount of $10,000 are due on February 1, 2017.

3. Complete the remaining columns of the work sheet.

4. Assume that Forever Green closes its books at the end of each month before preparing
financial statements. Prepare the necessary closing entries at August 31, 2016.

The unadjusted trial balance for Forever Green Landscaping on August

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