Question

Dec. This problem is based on the transactions for the Landscape Dreams Company in your text. Prepare journal entries for each transaction and identify the financial statement impact of each entry. The financial statements are automatically generated based on the journal entries recorded. 1 On December 1, Sal Strods forms a consulting business, named Landscape Dreams. Landscape Dreams receives $60,000 cash from Sal Strods in exchange for common stock. Dec. 2 Landscape Dreams pays $4,000 cash for supplies. The company's policy is to record all prepaid expenses in asset accounts. Dec. 3 Landscape Dreams pays $44,000 cash for equipment. Dec. 4 Landscape Dreams purchases $9,400 of supplies on credit from a supplier, CalTech Supply. Dec. 5 Landscape Dreams provides consulting services and immediately collects $5,700 cash. Dec. 6 Landscape Dreams pays $2,500 cash for December rent. Dec. 7 Landscape Dreams pays $1,800 cash for employee salary. Dec. 8 Landscape Dreams provides consulting services of $3,500 and rents its test facilities for $2,200. The customer is billed $5,700 for these services. Dec. 9 Landscape Dreams receives $5,700 cash from the client billed on December 8. Dec. 10 Landscape Dreams pays CalTech Supply $2,400 cash as partial payment for its December 4 $9,480 purchase of supplies. Dec. 11 Landscape Dreams pays $900 cash for dividends. Dec. 12 Landscape Dreams receives $3,700 cash in advance of providing consulting services to a customer. The company's policy is record fees collected in advance in a balance sheet account. Dec. 13 Landscape Dreams pays $3,900 cash (insurance premium) for a 24-month insurance policy. Coverage begins on December 1. The company's policy is to record all prepaid expenses in a balance sheet account. Dec. 14 Landscape Dreams pays $1,620 cash for supplies. Dec. 15 Landscape Dreams pays $1,885 cash for December utilities expense. Dec. 16 Landscape Dreams pays $1,450 cash in employee salary for work performed in the latter part of December Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Every journal entry must keep the accounting equation in balance. Prepare the journal entries for each of the transactions of the Landscape Dreams Company, entering the debits before the credits. Each transaction will automatically be posted to the General < Prev 48 of 48 Next

Answer 1

Solution:

General Journal Date Particulars P.R. Debit (S) 60,000 Credit (S) Dec-01 Cash Common Stock (To record capital invested in business) 60,000 4,000 Dec-02 Supplies Cash (To record supplies purchased on cash) 4.000 44,000 Dec-03 Equipment Cash (To record payment for purchase an equipment) 44.000 9,400 Dec-04 Supplies Caltech Supply Creditor) (To record supplies purchased on credit) 9,400 Dec-05 Cash 5,700 Consulting Service Revenue (To reocrd payment received for providing consulting services) 5.700 2,500 Dec-06 Rent Expense Cash (To record payment of rent) 2,500 1,000 Dec-07 Salary Expense Cash (To record payment of salary) 1,000 Dec-08 Sundry Debtor 5,700.00 Consulting Service Revenue 3,500.00 Rent Income 2,200.00 (To record consulting service provided and to record rent of test facility) 5,700.00 Dec-09 Cash Sundry Debtor (To record received from debtor) 5,700.00 2,400.00 Dec-10 Caltech Supply Creditor) Cash (To record payment to caltech supply) 2.400.00 900.00 Dec-11 Dividend Cash (To record payment of dividend) 900.00 3,700.00 Dec-12 Cash Advance Consulting Service Revenue (To record service revenue received in advance) 3.700.00 3.737.50 162.50 Dec-13 Prepaid Insurance Insurance Expense Cash (To record payment of insurance premium) 3,900.00

1,620 Dec-14 Supplies Cash (To record supplies purchased on cash) 1,620 1,805 Dec-15 Utilities Expense Cash (To record payment of utilities expense) 1,805 1,450 Dec-16 Salary Expense Cash (To record payment of employee's salary) 1,450