Brava Landscaping, Inc., completed the following transactions during its first month of operations for January 2016:

a. Gabrielle Brava invested $8,500 cash and a truck valued at $16,000 to start Brava Landscaping, Inc.; the business issued common stock in exchange for these assets

b. Purchased $450 of supplies on account

c. Paid $1,800 for a six-month insurance policy

d. Performed landscape services for a customer and received $925 cash

e. Completed a $5,300 landscaping job on account

f. Paid employee salary, $820

g. Received $1,560 cash for performing landscaping services

h. Collected $1,350 in advance for landscaping service to be performed later

i. Collected $2,800 cash from a customer on account

j. Purchased fuel for the truck, paying $110 with a company credit card; credit

Accounts Payable

k. Performed landscaping services on account, $2,130

l. Paid the current month's office rent, $1,150

m. Paid $400 on account

n. Paid cash dividends of $1,000

Requirements

1. Record each transaction in the general journal. Use the letter corresponding to each transaction as the transaction date. Explanations are not required.

2. Post the transactions you recorded in Requirement 1 in the following T-accounts.

3. Prepare an unadjusted trial balance as of January 31, 2016.
4. Journalize and post the adjusting journal entries on January 31, 2016, based on
the following information:
a. Accrued salaries expense, $470
b. Depreciation expense, $330
c. Record the expiration of one month’s insurance
d. Supplies on hand, $85
e. Earned 2/3 of the Unearned Service Revenue during January
5. Prepare an adjusted trial balance as of January 31, 2016. Use the adjusted trial balance to prepare Brava Landscaping’s income statement and statement of retained earnings for the month ending January 31, 2016, and balance sheet at January 31, 2016. On the income statement, list expenses in decreasing order by amount—that is, the largest expense first, the smallest expense last.
6. Journalize and post the closing entries.
7. Prepare a post-closing trial balance at January 31, 2016.

Transcribed Image Text:

Salaries Payable Unearned Service Revenue Common Stock Retained Earnings Dividends Service Revenue Salaries Expense Depreciation Expense, Truck Insurance Expense Fuel Expense Rent Expense Supplies Expense Cash Accounts Receivable Supplies Prepaid Insurance Truck Accumulated Depreciation, Truck Accounts Payable