Question

Directions: Please complete the requirements of the following problem. Please use the workpapers I am providing. I require that you work individually on this project. You may come to me with questions, but may not use any resources other than your textbook and class notes. For the past several years, Matthew Silver has operated a landscape design business from his home on a part- ime basis. As of June 1, 2020, Matthew decided to move to rented quarters and to operate the business, which as to be known as Landscape Creations, Inc., on a full-time basis. Landscape Creations entered into the Sllowing transactions in June: un. I in. I in 2 S 48,600 in. 2 in. 5 n. 10 n. 15 n. 15 7.16 The following assets were received from Matthew Silver in exchange for capital stock of Landscape Creations, Inc. Cash $ 45,000 Supplies $ 8,775 Equipment $ 70,200 Borrowed cash from First National Bank by signing a 5-year, 9% $ 650,000 note. Paid the premiums on 12-month insurance policies. The policy expires on June 1, 2021. Paid three months' rent on a lease rental contract. $ 43,200 Received cash from clients as an advance payment for services to S 85,050 be performed and recorded them as unearned fees. Declared a dividend, payable on Jun. 30. $ 17,550 Recorded services performed on account for the period June 1-15. $ 37,300 Recorded services performed for cash customers for the period June 1-15. S 41,775 Paid staff for two weeks' salary. $ 4,680 Purchased additional equipment from Bergstrom Co. The business ousiness $ 29,450 paid half in cash and will pay the balance on June 21. Received cash payments from clients on account. $ 15,000 Paid cash for supplies. $ 13,388 Recorded services performed on account for the period June 16-20. $ 45,225 Paid Bergstrom Co. for the debt incurred on June 17. 14,725 Recorded services performed for cash customers for the period s 25175 June 16-21. Paid cash for an online advertisement $ 2,100 Received cash from clients on account. $ 17,800 1.17 19 20 20 21 2 5

Answer 1

	General Journal
	Date	Journal	Debit	Credit
	01-06-2001	Cash	45,000.00
		Supplies	8,775.00
		Equipment	70,200.00
		To Capital Stock		1,23,975.00
		(Being assets brought in exchange for capital)
	01-06-2001	Cash	6,50,000.00
		To Notes Payable		6,50,000.00
		(Cash borrowed from bank as notes payable)
	02-06-2021	Insurance Expense	4,050.00
		Prepaid Insurance	44,550.00
		To Cash		48,600.00
		(Insurance expense for 1 month accounted and balance to prepaid account)
	02-06-2021	Rent Expense	14,400.00
		Prepaid Rent	28,800.00
		To Cash		43,200.00
		(Prepaid rent for 2 months accounted)
	05-06-2021	Cash	85,050.00
		To Unearned Fees		85,050.00
		(Unearned fees received from clients accounted)
	10-06-2021	Dividends	17,550.00
		To Dividend Payable		17,550.00
		(Declared dividend payable on June 30)
	15-06-2021	Accounts Receivable	37,300.00
		To Fees Earned		37,300.00
		(Services performed on account from June 1-15)
	15-06-2021	Cash	41,775.00
		To Fees Earned		41,775.00
		(Services performed for cash from June 1-15)
	16-06-2021	Salary Expense	4,680.00
		To Cash		4,680.00
		(Salary for 2 weeks paid)
	17-06-2021	Equipment	29,450.00
		To Cash		14,725.00
		To Accounts Payable		14,725.00
		(Purchase of equipment, half the price paid in cash and balance on June 21)
	19-06-2021	Cash	15,000.00
		To Accounts Receivable		15,000.00
		(Cash received from clients on account)
	20-06-2021	Supplies	13,388.00
		To Cash		13,388.00
		(Cash paid for supplies)
	20-06-2021	Accounts Receivable	45,225.00
		To Fees Earned		45,225.00
		(Services performed on account from June 16-20)
	21-06-2021	Accounts Payable	14,725.00
		To Cash		14,725.00
		(Balance paid to Bergstrom Co. for purchase of equipment)
	21-06-2021	Cash	25,125.00
		To Fees Earned		25,125.00
		(Services performed for cash from June 16-21)
	22-06-2021	Utilities and Ad Expense	2,100.00
		To Cash		2,100.00
		(Cash paid for online advertisement)
	25-06-2021	Cash	17,800.00
		To Accounts Receivable		17,800.00
		(Cash received from clients on account)
	28-06-2021	Salary Expense	4,680.00
		To Cash		4,680.00
		(Salary for 2 weeks paid)
	29-06-2021	Utilities and Ad Expense	2,530.00
		To Cash		2,530.00
		(Cash paid for telephone bill)
	30-06-2021	Utilities and Ad Expense	4,950.00
		To Accounts Payable		4,950.00
		(Electricity bill for june to be paid in july)
	30-06-2021	Dividend Payable	17,550.00
		To Cash		17,550.00
		(Dividend declared on June 10 paid)
	30-06-2021	Cash	19,650.00
		To Fees Earned		19,650.00
		(Services performed for cash from June 22-30)
	30-06-2021	Accounts Receivable	16,200.00
		To Fees Earned		16,200.00
		(Services performed on account from June 21-30)
			12,80,503.00	12,80,503.00 General Ledger Amount Amount Particulars To Capital Stock To Cash Particulars To Capital Stock To Notes Payable To Unearned Fees To Fees Earned To Accounts Receivable To Fees Earned To Accounts Receivable To Fees Earned Supplies Account Amount Particulars 8,775.00 13,388.00 Balance c/f 22,163.00 22,163.00 22,163.00 Cash Account Amount Particulars 45,000.00 Insurance Expense 6,50,000.00 Prepaid Insurance 85,050.00 Rent Expense 41,775.00 Prepaid Rent 15,000.00 Salary Expense 25,125.00 Equipment 17,800.00 Supplies 19,650.00 Accounts Payable Utilities and Ad Expense Salary Expense Utilities and Ad Expense Dividend Payable Balance c/f 8,99,400.00 4,050.00 44,550.00 14,400.00 28,800.00 4,680.00 14,725.00 13,388.00 14,725.00 2,100.00 4,680.00 2,530.00 17,550.00 7,33,222.00 8,99,400.00 Particulars To Fees Earned To Fees Earned To Fees Earned Accounts Receivable Amount Particulars 37,300.00 Cash 45,225.00 Cash 16,200.00 Balance c/f 98,725.00 Amount 15,000.00 17,800.00 65,925.00 98,725.00 Amount Particulars To Cash Prepaid Rent Account Amount Particulars 28,800.00 Balance c/f 28,800.00 28,800.00 28,800.00 Amount Particulars Amount Particulars To Cash Prepaid Insurance Amount Particulars 44,550.00 Balance c/f 44.550.00 Unearned fees Amount Particulars Cash 85,050.00 85,050.00 85,050.00 Balance c/f 44,550.00 44,550.00 85,050.00 Amount Particulars To Cash Dividend Payable Amount Particulars 17,550.00 Dividends Amount 17,550.00 Particulars To Capital Stock To Cash To Accounts Payable Equipment Amount Particulars 70,200.00 14,725.00 14,725.00 Balance c/f 99,650.00 17,550.00 17,550.00 99,650.00 99,650.00 Particulars Notes Payable Amount Particulars Cash 6,50,000.00 6,50,000.00 Amount 6,50,000.00 Balance c/f Particulars To Cash Accounts Payable Amount Particulars 14,725.00 Equipment Utilities and Ad Expense 4,950.00 19,675.00 Amount 14,725.00 4,950.00 6,50,000.00 Balance c/f 19,675.00 Particulars Amount Capital Stock Amount Particulars Cash Supplies Equipment 1,23,975.00 1,23,975.00 Amount 45,000.00 8,775.00 70,200.00 Particulars To Cash To Cash Salary expense Amount Particulars 4,680.00 4,680.00 Balance c/f 9,360.00 9,360.00 1,23,975.00 Dividends Amount 17,550.00 Particulars Amount Particulars To Dividend Payable Amount Rent expense Amount Particulars 14,400.00 Particulars To Cash 17,550.00 17,550.00 14,400.00 14,400.00 Particulars Insurance expense Amount Particulars 4,050.00 Particulars To Cash Amount Fees earned Amount Particulars Accounts Receivable Cash Accounts Receivable Cash Cash Accounts Receivable 1,85,275.00 4,050.00 4,050.00 Amount 37,300.00 41,775.00 45,225.00 25,125.00 19,650.00 16,200.00 1,85,275.00 Amount Particulars To Cash To Cash To Accounts Payable Utilities and Ad expense Amount Particulars 2,100.00 2,530.00 4,950.00 9,580.00 9,580.00 Credit Trial Balance as on June 30,2020 Ledgers Debit Cash Account 7,33,222.00 Supplies Account 22,163.00 Accounts Receivable 65,925.00 Prepaid Rent Account 28,800.00 Prepaid Insurance 44,550.00 Equipment 99,650.00 Unearned fees Notes Payable Accounts Payable Capital Stock Salary expense 9,360.00 Dividends 17,550.00 Rent expense 14,400.00 Fees earned Insurance expense 4,050.00 Utilities and Ad expense 9,580.00 10,49,250.00 85,050.00 6,50,000.00 4,950.00 1,23,975.00 1,85,275.00 10,49,250.00