JOURNALIZING AND POSTING TRANSACTIONS AND PREPARING FINANCIAL STATEMENTS Molly Claussen owns a lawn care business. She opened her business in April with a cash investment of $5,000. She rents a small shop area where she stores her equipment and has an assistant to receive orders and process accounts. Her trial balance shows her account balances for the first two months of business (April and May). No adjustments were made at the end of April or May.

Transactions for June are as follows:
June 1 Paid shop rent, $200.
2 Purchased office supplies, $230.
3 Purchased new landscaping equipment on account from Earth Care, Inc., $1,000.
5 Paid telephone bill, $31.
6 Received cash for lawn care fees, $640.
8 Paid electricity bill, $31.
10 Paid part-time worker, $300.
11 Received cash for lawn care fees, $580.
12 Paid for a one-year insurance policy, $200.
June 14 Made payment on account for landscaping equipment previously purchased, $100.
15 Paid for gas and oil, $40.
19 Paid for mower repairs, $25.
21 Received $310 cash for lawn care fees and earned $480 on account.
24 Withdrew cash for personal use, $100.
26 Paid for edging equipment repairs, $20.
28 Received cash from customers (previously owed), $480.
29 Paid part-time worker, $300.
Additional accounts needed are as follows:
313.....Income Summary
523.....Office Supplies Expense
524.....Lawn Care Supplies Expense
535.....Insurance Expense
542.....Depreciation Expense'Lawn Care Equipment
June 30 adjustments are as follows:
(a) Office supplies on hand, $273.
(b) Lawn care supplies on hand, $300.
(c) Prepaid insurance expired over past three months, $100.
(d) Depreciation on lawn care equipment for past three months, $260.
REQUIRED
1. Journalize the transactions for June using the modified cash basis and page 5 of a combination journal. Set up special columns for Lawn Care Fees (credit), Repair Expense (debit), and Wages Expense (debit).
2. Determine the cash balance as of June 12.
3. Prove the combination journal.
4. Set up general ledger accounts including the additional accounts listed above, entering balances as of June 1, 20--. Post the entries from the combination journal.
5. Prepare a work sheet for the three months ended June 30, 20--.
6. Record the adjusting entries on page 6 of the combination journal and post to the general ledger accounts.
7. Prepare an income statement and statement of owner's equity for the three months ended June 30, and a balance sheet as of June 30, 20--. Assume that Claussen invested $5,000 on April 1, 20--.
8. Record the closing entries on page 6 of the combination journal and post to the general ledgeraccounts.

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Molly Claussen's Green Thumb Trial Balance May 31, 20 -- ACCOUNTNTLE ACCOUNT NO. DEBIT BALANCE CREDIT BALANCE 46 0 4 00 58 8 00 2 4 3 00 1 5 0 00 2 4 0 8 00 Cash 101 Lawn Care Supplies Offke Supplies 141 142 Prepaid Insurance Lawn Care Equipment 145 189 Accumulated Depreciation-Lawn Care Equipment Accounts Payable Molly Claussen, Capital Moly Claussen, Drawing 189.1 10 8 0 00 5|0 0 0 00 202 311 8 0 0 00 312 4 033 00 Lawn Care Fees 401 6 0 0 00 40 0 00 511 Wages Experse Rent Expense Telephone Experse Electrkity Expense 521 8 8 00 6 2 00 525 533 Repair Expense Gas and OilExpense 5 0 00 1 2 0 00 10 1 1 3 00 537 538 10 1 13 00