Ryan Landscaping Service had the following account balances at the start of March. Cash \$23 710; Accounts Receivable \$440; GST Paid \$330; Supplies of Landscaping Materials \(\$ 3200\); Land \(\$ 40000\); Buildings \$82000; Accounts Payable \$123; GST Collected \(\$ 380\) and Mortgage Payable \(\$ 60000\).

The Ryan Landscaping Service entered into the following transactions during March.

Required:
a Calculate Ryan's capital account balance at 1 March.
b Prepare journal entries to record the preceding transactions.

c Set up the following T-accounts (and account numbers): Cash (101), Accounts Receivable (103) GST Paid (104), Supplies (108); Land (110), Building (112), Accounts Payable (215), GST Payable (220), PAYG Tax Payable (231), Mortgage Payable (221), R. Foster, Capital (301), R. Foster, Drawings (302), Landscaping Services Revenue (401), Repairs Expense (501), Supplies Expense (503), Utilities Expense (502), Telephone Expense (505) and Salaries Expense (507).
d Prepare a Trial Balance at 31 March.

Transcribed Image Text:

Date 1 Mar. 2 4 5 6 6-10 12 15 25 31 31 31 31 Transaction Provided landscaping service for customer, collecting $572 cash. Paid three months' rent in advance at $297 per month on storage and office building. Paid Accounts Payable owing from previous month. Purchased $55 of repair parts on credit from JR's, a small-engine service business; the parts are to be used immediately in repairing several of the business' mowers. Received accounts receivable from previous month Provided landscaping service for a customer; customer agreed to pay the contract price of $2695 in 15 days. Owner withdrew supplies $100 Paid amount due to JR's for repair parts purchased on 5 March. Collected amount owing from customer for service provided on 6-10 March. Paid $44 for March utilities bill. Paid $1980 including PAYG Tax of $280 to employees for March salaries. Received $88 March telephone bill, to be paid in early April. A stocktake of supplies indicated $1350 worth of supplies on hand.