University:
Michigan State University
Course:
ACC 300 | Intermediate Financial Accounting I
Academic year:

2021
Views:

309

Pages:

3
Author:

folclord7m

50 Minutes, Strong PROBLEM 3.6A DONEGAN'S LAWN CARE SERVIC E a. General Journal 2011 Jul y 18 Cash 1,500 Ca p ital Stock Issued 500 shares of capital stock. 22 23 24 25 26 30 1,500 Office Supplies Accounts Pa yable Purchased office supplies on account. 100 100 Mowing Equipment Cash Notes p a yable Purchased mowing equipment, paying $400 cash and issuing a $1,600 note payable for the balance. Fuel Expense Cash Paid for gasoline to be used in July. 2,000 400 1,600 25 25 Accounts Receivable Mowin g Revenue Billed Lost Creek Cemetery for mowing services. Payment is due July 30. 150 Accounts Receivable Mowin g Revenue Billed Golf View Condominium for mowing services. Payment is due August 1. 200 Cash 150 150 200 Accounts Receivable Collected amount due from Lost Creek Cemetery for mowing services provided July 25. 31 Salaries Expense Cash Paid salary to Teddy Grimm for work performed in July. P3.6A 150 80 80 PROBLEM 3.6A DONEGAN'S LAWN CARE SERVICE (continued) b. Jul 18 Jul 30 Cash 1,500 July 23 150 July 24 July 31 July 31 Bal. 1,145 July 22 July 31 Bal. Office Su pplies 100 100 July 31 Bal. Capital Stock July 18 July 31 Bal. Mowin gRevenue July 25 July 26 July 31 Bal. July 31 Bal. July 25 July 26 July 31 Bal. Accounts Pa y able July 22 July 24 400 25 80 Accounts Receivable 150 July 30 200 200 July 23 Mowing Equipment 2,000 July 31 Bal. 2,000 Notes Pa y able July 23 100 150 100 July 31 Bal. 1,600 1,600 Retained Earnings 1,500 1,500 July 31 Bal. 150 200 July 31 Salaries Ex pense 80 350 July 31 Bal. 80 Fuel Expense 25 25 P3.6A(p.2) 0 PROBLEM 3.6A DONEGAN'S LAWN CARE SERVICE (concluded) c. DONEGAN'S LAWN CARE SERVICE Trial Balance July 31, 2011 $ Cash Accounts receivable Office supplies Mowing equipment 1,145 200 100 2,000 Accounts payable Notes payable Capital stock $ Retained earnings Mowing revenue 0 350 Salaries expense Fuel expense $ d. 100 1,600 1,500 80 25 3,550 $ 3,550 Donegan’s Retained Earnings balance is zero because the company has been in business for only two weeks and has not yet updated the Retained Earnings account for any revenue or expense activities. The procedure to update the Retained Earnings account is discussed in Chapter 5. P3.6A(p.3)