Question

Cut the Green Stuff (CGS) is a landscape service company that provides its customers with lawn and garden maintenance. For a new customer, CGS requires a prepayment of the first 3 months of service fees. After three months, customers are billed as services are provided (billing occurs on the 15th and 30th of each month) with invoices due in 30 days. At the end of November 2019, CGS has the following balances in its accounts: Account Title Balance $ 52,200 54,000 Cash Accounts Receivable Supplies Equipment Accumulated Depreciation, Equipment Accounts Payable 740 70,000 14,200 5,000 38,000 57,740 298,600 22,000 195,000 Common Stock Retained Earnings Landscaping Service Revenue Supplies expense Wages expense Rent expense Utilities expense 13,300 6,300

T-accounts are not provided. The purpose of the question is to write down the journal entries and make T-accounts based on them. The chart from Dec 1 - 31 are the ones that need to be put into a journal entry and also T-account

Answer 1

DATE DE811 in 2 December CREDIT CAR 1300 1300 Journal Entries PARTICULARS Rent expenses all-... Dr. To cash al (Belong monthly rent paid) cash account ----- DA To land scaping service det (Being eash collected from new customer) December 2400 2450 124000 350 4 4000 1800 cempee Lown-movers account--- D 1 24000 To note payable account (Being 3 lawn. movers purchased) December, utilities expenses are --- Dr. I 350 To cash account (Being gasoline purchased December, Accounts payable al be 4000 To cash account (Being accounts payable pard) December, Advertisement expenses ale-- Dy 1800 To cash Ale (Being advarsiment expenses pavid) Decembes cash account ---- Dr 12000 14 To account receivable. (Being cash collected from customel) December | wages expenses alca - Dr 10000 To cash A/C (paid employees for work performed december Account receivable a/-- Dr I 27000 15 To land scaping service (Being billed customers for providing senice) 12000 10000 27000

recember | 17 6000 Utilities expenses ale - Dr To cash acc. (Being gasoline purchased) 8000 december FOD 700 18000 electricity bill ale – – – Dr. 20 To cash al (Being electric bill paid) december, cash account - – – – Dr. 18000 28 To accouot receivable (Being cash collected from customers) december Account receivable alco Dr 19000 To service revenue (Being customers billed for service providing) december, wage expenses aka – Dr 13000 30 To cash afe (Being wages paid) december, dividend to shareholders alco-Dr 2600 30 To cash Al (Being dividend paid) do r as 30 19ovo 13000 2600

The lawn mowers account is included in equipment account.