During its first month of operation, the Leonard Landscaping Company, which, specializes in landscaping services, completed the
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During its first month of operation, the Leonard Landscaping Company, which, specializes in landscaping services, completed the following transactions. | |
April Transactions | |
Date | Transaction Description |
April 1 | Started a landscaping business by making a $50,000 deposit in a company bank account, in exchange for 5,000 shares of $10 par value common stock. |
April 1 | Purchased insurance for the year and paid $3,600 cash. |
April 1 | Paid monthly rental of $2,500 cash on a warehouse to store the landscaping equipment. |
April 3 | Purchased landscaping equipment from Toro for $15,000, paying a downpayment of $10,000 cash, and $5,000 on account. |
April 5 | Purchased landscaping supplies of $750 on account. |
i | Paid $500 cash for advertising in local newspapers. |
April 10 | Received $12,500 in cash for landscaping services provided. |
April 12 | Paid $2,000 on account for landscaping equipment previously purchased on April 3rd. |
April 15 | Provided landscaping services on account for $1,200. |
April 20 | Received $10,500 in cash for landscaping services provided. |
April 28 | Received $600 cash on account for landscaping services performed on April 15th. |
April 30 | Received $4,000 cash for landscaping services provided. |
April 30 | Paid a utility bill of $700 cash. |
April 30 | Paid dividends of $3,000 cash |
April 30 | The inventory of landscaping supplies showed a balance of $300 on hand at the end of the month. |
Chart of Accounts
Use the following account descriptions for journal entries. | |||
Chart of Accounts | |||
Account Type | Account Number | Account Title | Normal Balance |
Assets | |||
111 | Cash | Debit | |
115 | Accounts Receivable | Debit | |
117 | Prepaid Insurance | Debit | |
119 | Landscaping Supplies | Debit | |
144 | Landscaping Equipment | Debit | |
Liabilities | |||
212 | Accounts Payable | Credit | |
Stockholders Equity | |||
311 | Common Stock | Credit | |
313 | Dividends | Debit | |
Revenue | |||
411 | Landscape Services Revenue | Credit | |
Expenses | |||
511 | Warehouse Rent Expense | Debit | |
512 | Advertising Expense | Debit | |
514 | Landscaping Supplies Expense | Debit | |
517 | Utility Expense | Debit |
General Ledger Entries
Date | Particulars | Amount Debit | Date | Particulars | Amount Credit |
1-Apr | common Stock | 50,000 | 1-Apr | Prepaid Insurance | 3600 |
1-Apr | Warehouse Rent | 2500 | |||
3-Apr | Landscaping Equipment | 10000 | |||
8-Apr | Advertising Expense | 500 | |||
10-Apr | Landscape Service Revenue | 12500 | 12-Apr | Accounts payable | 2000 |
20-Apr | Landscape Service | 10500 | |||
28-Apr | Accounts Receivable | 600 | |||
30-Apr | Landscape Service Revenue | 4000 | |||
30-Apr | Utility Expense | 700 | |||
30-Apr | Dividends | 3000 | |||
30-Apr | Balance C/D | 55300 | |||
TOTAL | 77600 | 77600 |
1 - Journal Entries
REQUIREMENT #1: Prepare journal entries to record the the April transactions in the General Journal below. Remember that Debits must equal Credits—All of your Journal Entries should balance. | ||||
General Journal | ||||
Date | Account Number from Chart of Accounts tab | Account Title from Chart of Accounts tab | Debit | Credit |
Related Book For
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
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