Journal Entries (Appendix) Following is a list of transactions entered into during the fi rst month of
Question:
Journal Entries (Appendix)
Following is a list of transactions entered into during the fi rst month of operations of Gardener Corporation, a new landscape service. Prepare in journal form the entry to record each transaction.
April 1: Articles of incorporation are fi led with the state, and 100,000 shares of common stock are issued for $100,000 in cash.
April 4: A six-month promissory note is signed at the bank. Interest at 9% per annum will be repaid in six months along with the principal amount of the loan of
$50,000.
April 8: Land and a storage shed are acquired for a lump sum of $80,000. On the basis of an appraisal, 25% of the value is assigned to the land and the remainder to the building.
April 10: Mowing equipment is purchased from a supplier at a total cost of $25,000.
A down payment of $10,000 is made, with the remainder due by the end of the month.
April 18: Customers are billed for services provided during the fi rst half of the month.
The total amount billed of $5,500 is due within ten days.
April 27: The remaining balance due on the mowing equipment is paid to the supplier.
April 28: The total amount of $5,500 due from customers is received.
April 30: Customers are billed for services provided during the second half of the month. The total amount billed is $9,850.
April 30: Salaries and wages of $4,650 for the month of April are paid.
AppendixLO1
Step by Step Answer:
Using Financial Accounting Information The Alternative To Debits And Credits
ISBN: 9780538452748
7th Edition
Authors: Curtis L. Norton, Gary A. Porter