Question

Cash, Accounts Receivable. Equipment, Notes Payable, Capital Stock, and Retained Earn- Prepare a summary of transactions (see Part A of Exhibit 1.3). Use money columns headed ings. Determine balances after each transaction to show that the accounting equation balances. Reliable Lawn Care Service, Inc., a company that takes care of the lawns and shrubbery 31 An order was received week, which will be billed at $12,000. mary of nd balance 6) of personal residences, engaged in the following transactions in April 2018: Apr. 1 The company was organized and received $500,000 cash from the owners in exchange for capital stock issued. 4 The company bought equipment for cash, $181,760. 9 The company bought additional mowing equipment that cost $18,120 and agreed to pay for it in 30 days. 15 Cash received for services performed to date was $13,840. 16 Amount due from a customer for services performed totaled $5,280. 30 of the receivable (see April 16), $3,072 was collected in cash. 30 Miscellaneous operating expenses of $8,240 were paid during the month. 30 An order was placed for miscellaneous equipment costing $28,800. The a. Prepare a summary of transactions (see Part A of Exhibit 1.3). Use money columns headed Cash, Accounts Receivable, Equipment, Accounts Payable, Capital Stock, and Retained Earnings. Determine balances after each transaction to show that the basic accounting equation balances, b. Prepare a balance sheet as of April 30. b. Analysis of the transactions of the Moonlight Drive-In Theater for June 2018 disclosed the following: c. d. et Tinn

Answer 1

1. Accounting Equation -

Reliable Lawn Care Service, Inc. Accounting Equation Assets Liabilities Accounts Accounts Equipment Receivable Payable = + Sr. No. Cash + + + Stockholder's Equity Capital Retained + Stock Earnings $500,000 $ 181,760 $ 18,120 $ 18,120 Apr 1 $ 500,000 Apr 4 $(181,760) Apr 9 Apr 15 $ 13,840 Apr 16 Apr 30$ 3,072 Apr 30 $ (8,240) Apr 30 No Entry $ 13,840 $ 5,280 $ 5,280 $ (3,072) $ (8,240) $ 326,912 + $ 2,208 + $ 199,880 = $ 18,120 + $500,000 + $ 10,880

2. Balance Sheet -

Reliable Lawn Care Service, Inc. Balance Sheet April 2018 Assets: Cash $326,912 Accounts Receivable $ 2,208 Equipment $ 199,880 Total Assets $529,000 Liabilities and Stockholder'e Equity Liabilities: Accounts Payable $ 18,120 Stockholder'e Equity: Capital Stock Retained Earnings Total Stockholder'e Equity $500,000 $ 10,880 $ 510,880 Total Liabilities and Stockholder'e Equity $529,000