Question

Steve Russell started a snow removal and landscaping business he called Total Care Services. Selected transactions for Total Care Services, for the year ended May 31, 2021, are listed below.

1.		Steve transfers his used pickup truck valued at $3,000 into the business.
2.		Steve invested $2,700 cash in the business and opened a bank account in the name of Total Care Services.
3.		Purchased a used snow plow from a dealer for $1,200 paying half as a down payment and half on account.
4.		Plowed the parking lot of a local mall and billed the mall management company $820.
5.		Paid for gas for the truck $100.
6.		Plowed three neighbours’ driveways and immediately got paid $20 each.
7.		Collected in full the invoice billed to the mall management company.
8.		Paid balance owing on the purchase of the snow plow.
9.		Purchased a new lawn mower for $700, paying 10% down in cash, the remainder on account.
10.		Paid for business cell phone charges of $30.
11.		Purchased $300 of lawn maintenance supplies for cash.
12.		Billed customers $1,000 for lawn maintenance services completed.
13.		Paid balance owing on lawn mower.
14.		Collected $695 from customers for services previously billed.
15.		Steve withdrew $1,000 cash for personal use.
16.		Provided lawn maintenance services totalling $1,100 for several clients – one client whose bill is $100 pays cash, the remainder are on account.

Prepare journal entries to record the above transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Post to T accounts and arrive at ending balances. (Post entries in the order of journal entries presented in the previous part. If ending balance is 0 enter 0 on the normal side for the account.)

Prepare a trial balance. (Do not list those accounts that have zero ending balance.)

TOTAL CARE SERVICES Trial Balance                                                                       For the Month Ended May 31, 2021For the Year Ended May 31, 2021May 31, 2021
	Debit	Credit
Accounts ReceivableAccounts PayableCashEquipmentFuel ExpenseS. Russell, CapitalS. Russell, DrawingsService RevenueSuppliesTelephone ExpenseVehicles	$	$
Accounts ReceivableAccounts PayableCashEquipmentFuel ExpenseS. Russell, CapitalS. Russell, DrawingsService RevenueSuppliesTelephone ExpenseVehicles
Accounts ReceivableAccounts PayableCashEquipmentFuel ExpenseS. Russell, CapitalS. Russell, DrawingsService RevenueSuppliesTelephone ExpenseVehicles
Accounts ReceivableAccounts PayableCashEquipmentFuel ExpenseS. Russell, CapitalS. Russell, DrawingsService RevenueSuppliesTelephone ExpenseVehicles
Accounts ReceivableAccounts PayableCashEquipmentFuel ExpenseS. Russell, CapitalS. Russell, DrawingsService RevenueSuppliesTelephone ExpenseVehicles
Accounts ReceivableAccounts PayableCashEquipmentFuel ExpenseS. Russell, CapitalS. Russell, DrawingsService RevenueSuppliesTelephone ExpenseVehicles
Accounts ReceivableAccounts PayableCashEquipmentFuel ExpenseS. Russell, CapitalS. Russell, DrawingsService RevenueSuppliesTelephone ExpenseVehicles
Accounts ReceivableAccounts PayableCashEquipmentFuel ExpenseS. Russell, CapitalS. Russell, DrawingsService RevenueSuppliesTelephone ExpenseVehicles
Accounts ReceivableAccounts PayableCashEquipmentFuel ExpenseS. Russell, CapitalS. Russell, DrawingsService RevenueSuppliesTelephone ExpenseVehicles
Accounts ReceivableAccounts PayableCashEquipmentFuel ExpenseS. Russell, CapitalS. Russell, DrawingsService RevenueSuppliesTelephone ExpenseVehicles
Totals	$	$

Answer 1

Prepare journal entries as follows:

S.no Credit Accounts Titles 1 Equipment-Truck Capital - Steve Debit $3,000 $3,000 $2.700 2 Cash Bank Capital - Steve $2.700 $1.200 3 Equipment-Snowplow Accounts payable Cash $600 $600 $820 4 Accounts receivable Service revenue-parking $820 $100 5 Fuel expense Cash $100

S20 6 Cash Service revenue S20 $820 7 Cash Accounts receivable $820 S600 8 Accounts payable Cash $600 $700 9 Equipment-Lawn mower Cash ($700 x 10%) Accounts payable S70 $630 $30 10 Utlities expense Cash $30 $300 11 Supplies Cash $300

$1,000 12 Accounts receivable Service revenue-Maintenance $1,000 $630 13 Accounts payable Cash $630 14 Cash Accounts receivable $695 $695 $1,000 15 Capital-Steve, Drawings Cash $1,000 16 Accounts receivable Cash Service revenue-Maintenance $1,000 $100 $1.100

______________________________________________________________________

Prepare T-accounts as follows:

Capital
		1	$3,000
		2	$2,700
		End. Bal.	$5,700
Equipment
1	$3,000
3	$1,200
9	$700
End. Bal.	$4,900
Cash
2	$2,700	3	$600
6	$60	5	$100
7	$820	8	$600
14	$695	9	$70
16	$100	10	$30
		11	$300
		13	$630
		15	$1,000
End. Bal.	$1,045
Accounts receivable
4	$820	7	$820
12	$1,000	14	$695
16	$1,000
End. Bal.	$1,305
Accounts payable
8	$600	3	$600
13	$630	9	$630
		End. Bal.	$0
Service revenue
		4	$820
		6	$60
		12	$1,000
		16	$1,100
		End. Bal.	$2,980
Fuel expense
5	$100
End. Bal.	$100
Utilities expense
10	$30
End. Bal.	$30
Supplies expense
11	$300
End. Bal.	$300
Capital-steve, drawings
15	$1,000
End. Bal.	$1,000

_______________________________________________________

Prepare trial balance as follows:

Trial balance
	Debit	Credit
Cash	$1,045
Accounts receivable	$1,305
Supplies	$300
Equipment	$4,900
Accounts payable		$0
Capital-steve		$5,700
Capital-steve, Drawings	$1,000
Service revenue		$2,980
Fuel expense	$100
utilities expense	$30
Total	$8,680	$8,680