1 2 5 6 ACCT 201 FUNDAMENTALS OF ACCOUNTING Project 1 Enter your Stetson ID number here >> Enter your last name here.......> 800757447 Burris 19 7 8 Year 1 9 1-Jan 10 11 1-Feb Issued common stock in exchange for cash Landscaping equipment is purchased for cash 12 10-Mar Paid for advertisements to be run during the month 13 1-Apr 14 15-May Paid in advance for a one-year insurance policy Purchased supplies on account 15 1-Jun 18-Jul 16 Paid in advance for two years of rent on a storage facility Performed lawn mowing services for cash 1-Aug 17 Paid for maintenance on the lawn mowers in cash 16 18 20-Aug Performed landscaping services on account 1-Sep Your Company was incorporated on January 1st. The business provides a full range of landscaping services, including landscape design, construction, and maintenance. The following transactions occurred during the first two years of operations: Given Information $ 739,686 591,749 7,212 16,273 32,398 40,683 135,363 10,818 105,035 Borrowed money from the bank by signing a one-year note, at a rate of 8% 162,731 20 30-Nov Received cash payment from a customer for future services (not yet performed) 85,064 21 15-Dec Paid new employees for one month of work; payday is always on the 15th of the month. 33,286 15 16 17 1-Aug 1-Jun 18-Jul Paid in advance for two years of rent on a storage facility Performed lawn mowing services for cash Paid for maintenance on the lawn mowers in cash 18 20-Aug Performed landscaping services on account 19 1-Sep Borrowed money from the bank by signing a one-year note, at a rate of 8% 30-Nov 20 21 22 Received cash payment from a customer for future services (not yet performed) 15-Dec Paid new employees for one month of work; payday is always on the 15th of the month. 22 23 24 24 December 31st Adjustments: a Record interest that has accrued on the note (to be paid in cash on Feb 1 next year) 25 25 b Record insurance expense for the time lapsed on the one-year insurance policy 26 27 28 29 29 d e f A physical count of supplies at the end of the year reveals one third of the supplies were used Record depreciation expense for the equipment, estimated to have a useful life of seven years with no salvage value. Record rent expense for the months that the storage facility has been used. Employees have worked for half a month (December 16 December 31) in the current year but won't be paid until January 15. Hint: See the transaction on December 15th for the amount for a full month of pay. 40,683 135,363 10,818 105,035 162,731 85,064 33,286 Formulas You Compute 30 31 Year 2 Given Information. 15-Jan 32 Paid employees for one month of work $ 33,286 33 15-Mar 34 20-Jun Performed half of the services for customer who paid in advance Issued additional common stock in exchange for cash 42,532 17,669 26-Jul 35 Collected cash from customers for services previously performed 94,532 36 16-Aug Performed services for cash 331,639 37 1-Sep Paid back the note payable in full, plus interest, at a rate of 8% 175,749 20-Sep Performed services on account 257,336 38 8-Oct 39 7-Nov 40 41 15-Dec Performed remaining services for customer who paid in advance Paid for maintenance on equipment in cash Paid employee salaries for the past eleven months 30-Dec Paid a cash dividend to owners of the business 42,532 26,504 366,146 5,917 42 43 December 31st Adjustments: 44 Formulas You Compute a Record insurance expense for the time lapsed on the one-year insurance policy 45 46 47 b C A physical count of supplies at the end of the year reveals all remaining supplies were used Record depreciation expense for the equipment, estimated to have a useful life of seven years with no salvage value. 6 7 8 b C d e A physical count of supplies at the end of the year reveals all remaining supplies were used Record depreciation expense for the equipment, estimated to have a useful life of seven years with no salvage value. Record rent expense for the months that the storage facility has been used. Employees have worked for half a month (December 16 December 31) in the current year but won't be paid until January 15. Hint: See the transaction on December 15th for the amount for a full month of pay. 19 50 51 52