Analysis Component:

What is the purpose of recording depreciation? If depreciation is not recorded,

how would the income statement be affected?

Problem 3-3A Preparing adjusting entries (monthly)—unearned

revenues LO4

Helping Hand Outdoor Services pre-sells yard maintenance packages for the

gardening season. During October, the company collects cash from clients for

Christmas trees to be delivered in December. Snow removal services are also

provided. Helping Hand prepares adjusting entries monthly. The following

selected accounts appear on the November 30, 2023, unadjusted trial balance: Required

Prepare the monthly adjusting journal entries at November 30, 2023, using the

following additional information.

A$86,000 of the Unearned Lawn Services account represents payments received

from customers for the 2024 season. The remainder represents fall lawn

services actually performed during November 2023.

B$31,950 of the Unearned Garden Services account had been earned by

November 30, 2023.

C$9,200 of the Unearned Snow Removal Services account remained unearned at

November 30, 2023.

DHelping Hand arranges with its customers to deliver trees from December 5 to

December 20. As a result, the Unearned Christmas Tree Sales account will be

earned in total by December 20.