Question

CULTURU Wi!i5 rum. Journal entries for all transactions through the end of year (Dec. 31*) End of year unadjusted trial balance Adjusting journal entries for end of year adjusting transactions End of year adjusted trial balance Income Statement Statement of Retained Earnings Balance Sheet Transactions 1. Dec. 1" - a new company is formed called "Lawn Darter, Inc." $10,000 cash is contributed to the start-up in exchange for common stock. 2. Dec. 1" - $1,500 was paid for 3 months' rent in advance. 3. Dec. 1" - a $2,400 riding lawn mower was purchased in cash. This piece of equipment was determined to have a 2 year (24 month) usable lifespan. 4. Dec. 8" - 5400 of supplies were purchased on account and paid in cash 30 days later. 5. Dec. 10"-lawn service job was performed and payment was $1,250 in cash 6. Dec. 12" - a customer paid $1,400 in cash for lawn service to be performed Jan. 10 7. Dec. 15" - lawn service job was performed and payment was $1,100 in cash 8. Dec. 17" - lawn service job was performed and payment was $750 on account, paid in cash 30 days later. 9. Dec. 20° - lawn service job was performed and payment was $1,800 in cash 10. Jan. 1" - an inventory was done and it was determined $150 of supplies were used in Dec.

Answer 1

Journal Entries Date Account Title and Explaination Debit Post. Ref. Credit (S) (S) Dec.1 10,000.00 Cash Common Stock (To record Common Stock issued in exchange of cash) $ 10,000.00 Dec.1 1,500.00 Prepaid Rent Rent Expense (To record 3 months rent paid in advance) 1,500.00 Dec.1 $ 2,400.00 Equipment Cash (To record Equipment purchased) $ 2,400.00 Dec. 8 400.00 Supplies Accounts Payable (To record Supplies purchased on account) 400.00 $ 1,250.00 Dec. 10 Cash Service Revenue (To record Service provided for cash) 1,250.00

$ 1,400.00 Dec. 12 Cash Unearned Service Revenue (To record advance received for future services) $ 1,400.00 1,100.00 Dec. 15 Cash Service Revenue (To record Service provided for cash) $ 1,100.00 750.00 Dec.17 Accounts Receivable Service Revenue (To record Service provided on account) 750.00 1,800.00 Dec.20 Cash Service Revenue (To record Service provided for cash) 1,800.00

Jan.1 150.00 Supplies Expense Supplies (To record Consumption of Supplies) 150.00 Jan.5 $ 1,700.00 Dividends Payable Cash (To record Dividends of previous year paid) $ 1,700.00 Jan.5 Wages Expense $ 1,700.00 Cash $ 1,700.00 (To record wages paid) Jan.10 1,400.00 Unearned Service Revenue Service Revenue (To record service provided as per previous agreement) S 1,400.00 Mar.1 450.00 Income Tax Expense Income Tax Payable (To record Income Tax Expense) $ 450.00