Landscapes R Us is an S-Corp that specializes in Landscapes sales and installation. There are three owners who are all equal in ownership. LRU utilizes a calendar year and accrual-based accounting. It originated and was incorporated in January of 2009. LRU carries some inventory of trees, bushes, and mulch and has some equipment as well.

Accounts—Balances as of 12/1/2013 Cash—Checking $38,886 Accounts Receivable $38,125 Accounts Receivable Office Supplies 12,500 Purchases—Tree inventory $344,105 Purchases—Bush inventory $199,250 Purchases—Mulch inventory $96,600

Land $172,000 Building $235,000 Equipment 1 $4,000 Accumulated Depreciation— Equipment 1 $3,500 2010 Equipment 2 $12,000 2009 Truck $24,000 Back Hoe $8,000 Trailer $4,000 Accumulated Depreciation—Trailer $1,600 Accumulated Depreciation—Back Hoe 0 Accumulated Depreciation—Truck 0 Accumulated Depreciation— Equipment 2 $2,000 Utility expense $8,900 Rent expense $27,500 Accounts Payable Note payable 0 Long-Term Note payable $11,200 Sales Tax payable $6,200 Sales—trees, bushes, mulch $985,000 Installation revenue $38,000 Advertising expense $12,500 Accounts Payable Capital Account—Jones $173,914 —Smith $173,914 Capital Account—Clark $173,914 COGS 7% Sales tax expense $62,300 Wage expense $111,241 Office supplies $12,500 Insurance payable Insurance expense $3,800 Unearned installation revenue Fuel expense $174,750 Repair expense—Building $8,500 Repair expense—Equipment $10,750 Interest expense Phone expense $5,750 Bank Fee expense $3,810 Gain on the sale of equipment Loss on the sale of equipment

Journal entries: 12/6 Sales of 10 trees for $1,400—cash and carry Paid insurance bill for one-year policy, effective 12/7 for $1,200 will need the adjusting entry. 12/10 Received $4,000 for work to be done over approximately four months Sales of $10,000, $6,000 in cash, balance on account Sale on account of 12/6 pays $500 12/11 Paid the full amount due on AP of 12/8 Paid wages of $8,200, includes tax payment— wages done by ADP Sales of 75 trees @ 250 each, 25 yards mulch @ $50 each, $20,000 paid in cash Purchase 1,500 yards of mulch for $30,000, on account 12/15 Sales of 11 bushes for $1,100, paid in cash Fuel expense of $1,300 Purchased office supplies for $125, on account 12/18 Sales of $9,000, $5,000 in cash, balance on account Paid for newspaper ad—$800 Rented equipment—$150 12/22 Sales of $14,000, $4,000 in cash, balance on account Paid for repair of truck—$450 Installation revenue collected—$2,500 12/23 Sales of $14,000, on account Purchased 1,000 bushes for $30,000, on account Paid fuel expense of $2,100 Paid phone bill of $200 Bank fees of $320 12/26 Sales of 10 yards of mulch for $500, paid in cash Paid $300 principle payment and $50 interest on long term note, due 12/31 Repaired the building front door—$1,000 on account Sales of $29,000, on account 12/27 Paid wages of $7,450, includes tax payment— wages done by ADP Paid November sales tax of $6,200 Installation revenue paid—$2,500 Submission Requirements: Submit the updated balance sheet and journal entry templates to your instructor for evaluation.

Calculate the annual depreciation for the following assets for the entire lifespan of each asset. Each asset will have a different method to utilize. In addition, complete the applicable journal entries for each asset for tax year 2014. · Land: 58 acres valued at $172,000, inherited, currently in Year 3. · Building: Built in 2011—started to use on 1/1/2012, basis $225,000, residual value $10,000, 30-year life uses straight-line depreciation—currently in Year 3. · Equipment 2: Straight line cost $12,000, $2,000 residual value, five-year life—purchased 10/1/2012, currently in Year 3. · Truck—Sum of Years Digit: Cost $24,000, no residual value, five years, purchased and started using on 1/1/2013—currently Year 2. · Back Hoe—Units Of Production: Cost $8,000, no residual value, total use hours 10,000 or six years, used of 2,500 hours in 2013—started using on 1/1/2013—currently in Year 2. · Trailer—Double Declining Balance: Cost $4,000, no residual value, five-year life—started to use 6/1/2012— currently in Year 3. · Cost of Goods Sold: Calculate the cost of goods sold using LIFO for the trees, bushes, and mulch, independently using the following information. Use those cumulative amounts to calculate the gross income for 2014. 1. Trees: 2014 Annual sales of 6,430 units. Ending inventory is 1,825 units. Units Unit Cost Total Cost Beginning Inventory 3,895 45 $175,275 Purchase 1 2,910 43 $125,130 Purchase 2 950 46 $43,700 Purchase 3—Dec 500 40 $20,000 the adjustments and year end entries?

Bushes: 2013 Annual sales of 5175 units. Ending inventory is 1,350. Units Unit Cost Total Cost Beginning Inventory 1,575 40 $63,000 Purchase 1 2,750 35 $96,250 Purchase 2 1,000 40 $40,000 Purchase 3—Dec 200 35 $7,000 Purchase 4—Dec 1,000 30 $30,000 3. Mulch: 2013 Annual sales of 3,475 units. Ending inventory is 1,775. Units Unit Cost Total Cost Beginning Inventory 650 18 $11,700 Purchase 1 1,100 21 $23,100 Purchase 2 1,400 21 $29,400 Purchase 3 600 24 $14,400 Purchase 4—Dec 1,500 20 $30,000

Using the business scenario of LRU and the adjustment data provided below, complete the end-of-year adjusting and closing entries. Adjustments needed: · Depreciation—Equipment 2 · Depreciation—Truck Depreciation—Backhoe · Depreciation—Trailer · Prepaid Insurance · Unearned income 40% completed · Wage expense due—$3,200 · Cash reserve · Office supplies remaining—$75 · Calculate sales tax payable—due 1/28 · Interest payable · COGS—Trees · COGS—Bushes · COGS—Mulch

Use the resulting data to create the following: · Post-Closing Balance Sheet · Income Statement · Ratio Analysis · Annual Budget · Cash Analysis

***You will use all of the data to create a Post-closing Balance Sheet and then to perform Ratio Analysis for Landscapes R Us. You will also create a budget, based on your knowledge of Landscapes R Us financials and operations. Develop and submit an annual budget, using what you know about the company. Landscapes R Us is cash poor, and must do a better job of budgeting else the business will fail. Create a budget that will put LRU in a better cash position. Finally, you will further analyze the Landscapes R Us cash situation and write a narrative analysis, recommending potential solutions to remedy the cash balance situation. This should take the form of a technical report, documenting various cash strategies, the advantages and disadvantages of each, and a final recommendation to Landscapes R Us. Compile the Post-Closing Balance Sheet and Income Statement ·

*** This is what I need help with

Additional info:

Balance Sheet
31-Dec-14
ASSETS
Current assets:
Cash		38886
Accounts Receivable		38125
Office Supplies		12500
Inventories:
Tree		344105
Bush		199250
Mulch		96600
Total Current Assets		729466
Non-Current Assets
Land		172000
Building	235000
Less: Accum. Depr. Equip 1	4000
Less: Accum. Depr. Equip 1	-3500	500
2010 Equipment 2	12000
Less: Accum. Depr. Equip 2	-2000	10000
2009 Truck	24000
Accum. Depr. - Truck	0
Back Hoe	8000
Accum. Depr. Back Hoe	0
Trailer	4000
Accum. Depr. Trailer	-1600	2400
LIABILITIES
Current Liabilities:
Accounts Payable
Note Payable
Sales Tax Payable		6200
Unearned Revenue
Non-Current Liabilites:
Long-term Note Payable		11200
Shareholder's Equity:
Capital Acct - Jones		173914
Capital Acct - Smith		173914
Capital Acct - Clark		173914
Total Shareholders Equity		521742

Answer rating: 100% (QA)

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