Glorious Garden Lawn Service – Glorious Garden Lawn Service 1. Prepare the entries using the list of transactions. Put them in the general journal. 2023 Business Finance
2023 Glorious Garden Lawn Service 1 Prepare the entries using the list of transactions Put them in
Glorious Garden Lawn Service
1. Prepare the entries using the list of transactions. Put them in the general journal.
2. Post the journal entries from the general journal to the general ledger.
3. Prepare a trial balance using the general ledger totals.
4. Complete the work sheet using the information for adjustments.
5. Prepare financial statements from the worksheet.
6. Make the adjusting journal entries in the general journal.
7. Post the adjustments to the general ledger.
8. Make the appropriate closing entries in the general journal.
9. Post the closing entries to the general ledger.
10. Prepare a post-closing trial balance.
CHART OF ACCOUNTS
110 Accounts Receivable-Mr. Foster
111 Accounts Receivable-Ms. Sanchez
112 Accounts Receivable- Mr Grayson
120 Advertising Materials
130 Office Supplies
140 Landscaping Supplies
150 2004 Nissan Pickup Truck
151 Accumulated Depreciation-Pickup Truck
160 Lawn Equipment
161 Accumulated Depreciation-Lawn Equipment
200 Note Payable-Aunt Emma
210 Accounts Payable-Lovell Home & Garden Center
220 Accounts Payable-VISA
230 Interest Payable
240 Unearned Revenue
300 Jay Stevens, Capital
310 Jay Stevens, Drawing
320 Income Summary
400 Lawn Care/Landscaping Revenue
410 Interest Revenue
500 Landscaping Supplies Expense
510 Gas and Oil Expense
520 Telephone Expense
530 Advertising Expense
540 Office Supplies Expense
545 Interest Expense
550 Pickup Truck Maintenance
560 Equipment Rental Expense
570 Insurance Expense
580 Depreciation Expense-Pickup Truck
590 Depreciation Expense-Lawn Equipment
NARRATIVE OF TRANSACTIONS
1) 7/1 Jay opened two accounts at Union State Bank, using $3000 of his own money. He deposited 2,500 in a checking account and $500 into savings.
2) 7/2 Jay borrowed $6,000 from his Aunt Emma and signed a note with 8% interest. Under the terms of the note, he must make payments of $250 plus accrued interest on the first day of each month. Jay put $4,500 into his checking account and $1,500 into savings.
3) 7/3 Jay purchased a 2004 Nissan pickup truck by writing a check for $4,820.
4) 7/3 Jay purchased insurance for the pickup truck at a cost of $150 per month. He paid for the month of July.
5) 7/3 Jay established a cell phone account for the business. The phone was free, and he paid $75 for the first month’s service.
6) 7/5 Jay returned to the bank an applied for a VISA care. He received a card with a $1,000 credit limit.
7) 7/5 Jay purchased a lawn mower and garden tools on account from Lovell Home & Garden Center. The total cost was $1,080. (Debit Lawn Equipment)
8) 7/6 Jay purchased $185 worth of gloves, stakes, trimmer lines, and other supplies at the local hardware store using his VISA card.
9) 7/6 Jay paid $80 cash from gas and oil for his pickup truck and the mower.
10) 7/7 A box of 500 additional checks arrived from the bank along with a memo that the $25 cost was charged to Jay’s checking account. He considered this an immaterial amount and charged it all to Office Supplies Expense.
11) 7/7 Jay had 1,500 advertising flyers printed to promote his new business. The flyers cost $225 and are considered advertising materials. He also purchased $90 of office supplies. Jay used his VISA for all of these purchases.
12) 7/8 One of Jay’s neighbors, Mr. Adams, is leaving town for six weeks. He paid Jay $360 to mow his lawn each week and keep his hedges trimmed while he is away.
13) 7/9 Jay paid $75 cash to rent some equipment needed for the Foster job (see transaction 15).
14) 7/10 Jay purchased another $60 of gas using his VISA card.
15)7/11 Jay completed a landscaping and clean-up job for Mr. Foster. He left Mr. Foster a bill for $720.
16) 7/13 Jay charged another $140 in landscaping supplies at Lovell Home & Garden Center.
17) 7/14 Jay completed a $550 job for Mrs. Sanchez. She had hired him to mow her lawn and create a perennial flower bed in the front of her house. Mrs. Sanchez paid him $250 and agreed to pay the rest later.
18) 7/15 Jay’s girlfriend insisted that he take a break. He withdrew $120 from his checking account to go out for a nice evening with his girlfriend, Vanessa.
19) 7/16 Jay charged $110 on his VISA card for an oil change and some other minor maintenance on his truck.
20) 7/17 Jay paid Lovell Home & Garden Center $175 on his account.
21) 7/17 Jay transferred $300 from his checking account to his savings account.
22) 7/18 Jay wrote a check for $40 for fuel for the truck and the mower.
23) 7/19 Jay had no cash on him, so he wrote a business check for $12 to pay for his lunch.
24) 7/19 Jay completed a job in which he mowed Mrs. Mattson’s lawn and created two new flower beds. She paid him $425 in cash.
25) 7/20 Jay paid $55 to rent a piece of equipment to assist in trimming Mr. Young’s trees (transaction 26) 7/20 Mr. Young paid Jay $150 to mow his lawn and trim his trees.
27) 7/21 Jay received $400 from Mr. Foster, with a note that he would pay the balance next week.
28) 7/22 Jay paid $80 to rent some equipment needed for the Grayson job (see transaction 29).
29) 7/23 Jay completed a $700 job landscaping Mr. Grayson’s pool area. He was paid $200 in cash, and Mr. Grayson agreed to pay the balance in August.
30) 7/24 A check for $150 was received from Mrs. Sanchez as partial payment on the work Jay completed on July 14.
31) 7/24 Jay charged (on his VISA) another $65 for landscaping supplies.
32) 7/25 Mrs. Yee paid Jay $140 to mow, weed, and put new mulch in her garden beds.
33) 7/26 Jay wrote for $85 for more fuel for his truck and mower.
34) 7/27 Jay purchased an additional $45 of office supplies.
35) 7/30 Jay paid another $75 on his account at Lovell Home & Garden.
7/31 Now that Jay has completed his first month in business he wants to prepare financial statements.
He has gathered the information needed to make adjustments for the mother ended July 31.
Information for Adjustments
AI) Jay estimates that his truck will last four years and have an estimated salvage value of $500. ( Jay is using straight-line depreciation for all assets.)
A2)The lawn mower and tools should last three years, with no salvage value.
A3) Jay needs to accrue one month’s interest on his loan from Aunt Emma.
A4) By July 31, Jay had mowed Mr. Adams’ yard three of the six agreed-upon times.
A5, A6 & A7) As of July 31, Jay had $25 of office supplies, $75 of landscaping supplies, and 200 advertising flyers still on hand.
A8) Jay’s bank statement showed that his savings account had earned $5 in interest revenue.
Use this workbook to complete the Glorious Garden Lawn Service practice set for ACC121.
There are 6 tabs that include the general journals, general ledger, worksheet, financial statements and post closing trial balance.
Read the introduction on page one of the practice set and follow the instructions on page two.
The practice set is to be completed individually throughout the course with portions due during weeks three, four and five.