This exercise is the first exercise in a sequence that begins an accounting cycle. The cycle is continued in Chapter 2 and completed in Chapter 3. Lydon’s Yard Care, Inc., began operations and 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. Analyze the effects of Lydon’s Yard Care, Inc.’s transactions on the accounting equation. Include these headings: Cash, Accounts Receivable, Lawn Supplies, Equipment, Accounts Payable, Common Stock, Retained Earnings, Service Revenue, and Fuel Expense. Determine the ending balances in each account on April 30.

  • CreatedApril 29, 2014
  • Files Included
Post your question