Question

everC Construction began operations in March and completed the following transactions during that first month of operations. SeverCo's stockholders invested $30,000 cash in the company The company purchased $25,000 in construction equipment. It paid $5,000 in cash and signed a note payable promising to pay the $20,000 over the next three years. The company rented office space and paid $1,000 cash for the March rent. The company bought office supplies in the amount of $750 for use over the next two months. The company completed a landscaping job for a customer on credit in the amount of $7,500. The company purchased a $2,500 riding lawn mower for the business on credit. The company completed landscaping work for additional customers in the amount of 10,000, immediately collecting cash. The company paid its landscaping and administrative employees' salaries of $3,750 for the first half of the month. The company installed a new pond and waterfall feature for a customer and immediately collected $3,500 The company received $7,500 in payments from the customers billed on March 7. The company paid $1,000 on the lawn mower purchased on March 8. It will pay the remaining balance in May The company paid its employees' salaries of $3,750 for the second half of the month The company paid a vendor $2,500 for landscaping supplies purchased and used during March. March 1 15 17 20 28 Required: Using the Excel Template, complete the following: Show the effects of the transactions on the accounts using the accounting equation. Record increases an decreases in the appropriate columns in the table. Do not determine new account balances after each transaction, Determine the final total for each account and verify that the equation is in balance. Review the grading rubric to understand how you will be graded on this assignment. Reach out to your instructor if you have questions about the assignment. 31 31 31 The company paid $325 cash for this month's utility bil weer +51000 lel)

Answer 1

Answer

[Decrease in balances have been shown by negative values, by putting amounts within "( )"]

	Cash	Accounts receivables	Supplies	Equipments	Accounts Payable	Notes Payable	Unearned Revenue	Capital Stock	Revenues	Wages expenses	Tax expenses	Rent Expenses	Suplies expenses	Utilities expenses
Mar-01	$30,000							$30,000
Explanation	Cash and stock increased by the amount of cash received.
Mar-02	($5,000)			$25,000		$20,000
Explanation	Cash is decreased by the amount of cash paid, Notes payable increases by the amount of notes payable. Equipment will increase by the amount of equipment purchased
Mar-02	($1,000)											$1,000
Explanation	Payment of rent will decrease cash and increase Rent exense.
Mar-06	($750)		$750
Explanation	Supplies purchased in cash
Mar-07		$7,500							$7,500
Explanation	Revenue earned but not received.
Mar-08				$2,500	$2,500
Explanation	Equipment purchased on account will increase accounts payable balance.
Mar-09	$10,000								$10,000
Explanation	Revenue earned and received in cash.
Mar-15	($3,750)									$3,750
Explanation	Half month wages paid in cash.
Mar-17	$3,500								$3,500
Explanation	Revenue earned and received in cash.
Mar-20	$7,500	($7,500)
Explanation	Cash received for revenue already earned.
Mar-28	($1,000)				($1,000)
Explanation	Cash paid to accounts Payable.
Mar-31	($3,750)									$3,750
Explanation	Half month wages paid in cash.
Mar-31	($2,500)												$2,500
Explanation	Supplies used will increase Supplies expenses balance.
Mar-31	($325)													$325
Explanation	Utilities expenses will increase
TOTAL	$32,925	$0	$750	$27,500	$1,500	$20,000	$0	$30,000	$21,000	$7,500	$0	$1,000	$2,500	$325