Green Thumbs Landscaping, owned by Talib Reade needs your help. Their current financial position is as follows in the Sheet File.

Ledger: Use the following file and edit directly. Do NOT make a copy, Copy of Green Thumbs Ledger 2

Instructions:

1. Set up the ledger of ABCreative in the T-accounts. Record the beginning balances on the correct side of each T account. Revenue, Expense and Drawings accounts do not have beginning balances.

2. For the transactions listed below, record the accounting entries in T-accounts. Number each Transaction.

Transactions (Debits = Credits)

1. Purchased a new lawn mower equipment for $2500. Paid $1000 cash and we owe the rest ($1500) to Home Depot on our account (Compound entry - 3 entries)

2. T. Clarke purchased a $55 plant for his mother’s birthday while he was at the Home Depot. He paid cash using company funds. This transaction is unrelated to the business operations.

3. Paid $100 to Green Supply Co. to reduce our liability on account

4. Received $150 cash from our customer P. Mohamed on account.

5. Paid hydro bill of $1000 in cash.

6. Purchased a $100 Facebook advertisement on account to advertise the business.

7. Sold $2200 of design services for a new front lawn to B. Clarke on the account.

8. Sold Maintenance Services of $2500 for weeding received cash

9. Paid the balance owing to Home Depot.

3. Calculate pin totals and circle (highlight) the final total for each account.

4. Take off a Trial Balance to prove that your ledger is correct.

5. Prepare an Income Statement.

6. Prepare an updated Balance Sheet.

Answer rating: 100% (QA)

Income Statement of ABC Cretaive Particluars Debit amount Particluars credit amount To Hydro bill ex... View the full answer