This exercise continues with the business of Lydon’s Yard Care, Inc., begun in the continuing exercise in Chapter 1. Here, you will account for Lydon’s Yard Care, Inc.’s transactions in the general journal. Lydon’s Yard Care, Inc., completed the following transactions during April:
Apr 1 Received $1,500 and issued 500 shares of common stock. Deposited this amount in a bank account in the name of Lydon’s Yard Care, Inc.
3 Purchased on account a mower, $900, and weed whacker, $300. The equipment is expected to remain in service for four years.
5 Purchased $60 of gas. Wrote check #1 from the new bank account.
6 Performed lawn services for client on account, $200.
8 Purchased $75 of fertilizer from the lawn store. Wrote check #2 from the new bank account.
17 Completed landscaping job for client, received cash $700.
30 Received $150 on account from services performed on April 6.
1. Open T-accounts in the ledger: Cash, Accounts Receivable, Lawn Supplies, Equipment, Accounts Payable, Common Stock, Retained Earnings, Service Revenue, and Fuel Expense.
2. Journalize the transactions. Explanations are not required.
3. Post journal entries to the T-accounts. Key all items by date and denote an account balance as Bal. Formal posting references are not required. Determine ending balances in T-accounts on April 30, 2012.
4. Prepare a trial balance at April 30, 2012.