Dubai Lawn Care Inc. was opened on August 1 by Saeed Dubai. The following selected events...

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Dubai Lawn Care Inc. was opened on August 1 by Saeed Dubai. The following selected events and transactions occurred during August. Aug. 1 Invested $55,000 cash in the business in exchange for ordinary shares. 3 Purchased O'Brien's Tree Service for $38,000 cash. The price consists of land $20,000, building $15,000, and equipment $3,000. (Make one compound entry.) 5 Advertised the opening of the business, paying advertising expenses of $1,600. 6 Paid cash $1,480 for a one-year insurance policy. 10 Purchased equipment for $2,500 from Gupta Company, payable in 30 days. 18 Received fees for services of $1,200 in cash. 25 Declared and paid a $700 cash dividend. 30 Paid wages of $1,300. 30 Paid Gupta Company in full. 31 Received $850 of fees in cash. Dubai uses the following accounts: Cash, Prepaid Insurance, Land, Buildings, Equipment, Accounts Payable, Share Capital - Ordinary, Dividends, Service Revenue, Advertising Expense, and Salaries and Wages Expense. Instructions Journalize the August transactions. Provide explanations for the journal entries. Dubai Lawn Care Inc. was opened on August 1 by Saeed Dubai. The following selected events and transactions occurred during August. Aug. 1 Invested $55,000 cash in the business in exchange for ordinary shares. 3 Purchased O'Brien's Tree Service for $38,000 cash. The price consists of land $20,000, building $15,000, and equipment $3,000. (Make one compound entry.) 5 Advertised the opening of the business, paying advertising expenses of $1,600. 6 Paid cash $1,480 for a one-year insurance policy. 10 Purchased equipment for $2,500 from Gupta Company, payable in 30 days. 18 Received fees for services of $1,200 in cash. 25 Declared and paid a $700 cash dividend. 30 Paid wages of $1,300. 30 Paid Gupta Company in full. 31 Received $850 of fees in cash. Dubai uses the following accounts: Cash, Prepaid Insurance, Land, Buildings, Equipment, Accounts Payable, Share Capital - Ordinary, Dividends, Service Revenue, Advertising Expense, and Salaries and Wages Expense. Instructions Journalize the August transactions. Provide explanations for the journal entries.

Answer rating: 100% (QA)

Answer Date Aug Particulars 1 Cash Ac To Common Stock Ac Invested cash in business in exchange f... View the full answer