5 - UA P 88 Clipboard IS Font Alignment Nu Lenny's Lawn Service, Inc. - Transactions - Additional Information July 2021 Transactions Date Description of the Transaction July 1 Borrow $35,000.00 from 1st Bank by signing a 24 month note. As an example of how to journize and post transaction this transaction has already been entered into the General Journal and posted to the General Ledger July 1 Receive $65,700.00 cash from new investors, and issue $65,700.00 of Common Stock to them July 1 Purchase $43,800.00 of new mowing equipment, paying cash to the mower dealer. July 1 Pay $500.00 cash for the July truck rental July 3 Invoice a new customer S4,725.00 for a completed mowing job - customer will pay in 10 days July 5 The Board of Directors declares a cash dividend. The total amount of the dividend is $25,000.00 The Date of Record is set as July 15. The Date of Payment is set as July 31 July 7 Pay the employees 55,800.00 for work performed during the 1st week of July July 10 Complete a mowing job for a new customer -- customer pays $4,200,00 cash for the job. July 12 Collect $3,500.00 cash from the golf course for special rush mowing job completed on May 31, July 14 Pay the employees $7.000.00 for work performed during the 2nd week of July July 15 Purchase $1,020.00 of supplies from the mower dealer. The supplies are consumed immediately Lenny's will pay the mower dealer for the supplies in about 2 weeks July 15 Collect $4.725.00 on account. The cash that is received is from the new customer for the job that was completed on July 3. July 17 One of the original mowers purchased in January of 2020 broke down and is repared by the mower dealer. The cost of the Mower Repair job is $420,00 Lenny's will pay the mower dealer in 30 days Directions Trans Chart Accts Journal GL Assets GL Liab Equity GL Rev.Exp Trial Bai IS & SEquity BalSht Post ** Type here to search O 2 UW Page Layout Formulas Data Review View Help Arial - 12 A A llllilt MIHI til 8 1. A 5 Font Alignment Number Lenny's will pay the mower dealer for the supplies in about 2 weeks July 15 Colect $4,725.00 on account. The cash that is received is from the new customer for the job that was completed on July 3 July 17 One of the original mowers purchased in January of 2020 broke down and is repaired by the mower dealer. The cost of the Mower Repair job is $420,00, Lenny's will pay the mower dealer in 30 days July 19 Purchase for cash $22.750.00 of supplies. These supplies be consumed over the next 12 months July 20 Collect $30,000.00 from the property management company for work performed in June July 21 Pay the employees $7,100.00 for work performed during the 3rd week of July July 23 Receive a $21.500.00 advance payment from the university. The advance payment is for 6 months of work which will be performed from August 1.2021 to January 31, 2022 July 25 Complete a special mowing job for the golf course. The total price for the mowing job is $5,200.00 The golf course pays $500.00 cash on this date and will pay the remainder on August 25 July 27 Complete a mowing job for a new customer -- customer pays $3,900.00 cash for the job July 27 Pay $1.020.00 cash to the mower dealer for the supplies purchased on account on July 15. July 28 Pay the employees $6.100,00 for work performed during the 4th week of July July 31 Invoice the property management company $20,000.00 for July mowing work. The property management company will pay the invoice on the 20th of next month July 31 Pay the cash dividend which was declared on July 5. Additional Information Equipment: The $48,000.00 beginning balance in the Equipment account relates to the mowing equipment which was purchased on January 2, 2020 For information related to this mowing equipment see Page 70 in the Solid Footing text (PDF 07 - Intro to Adjusting Entries) This equipment continues to be used and should be depreciated for the month of July. Directions Trans Chart Accts Journal GL Assets GL Liab-Equity GL Rev-Exp Trial Bal IS & SEquity Balsht Po Type here to search AutoSave 0 ma Chapter 10 - Accounting Cyde Project 13e - Read-Only - Excel File Home Insert Draw Sh Page Layout Formulas Data Review View Help Ara - 12 A IN A ILU = = = B Hill 10 DEA MO $.96 s2 Clipboard Font Alignment C2 Number Additional Information Equipment: The $48,000.00 beginning balance in the Equipment account relates to the mowing equipment which was purchased on January 2, 2020. For information related to this mowing equipment see Page 70 in the Solid Footing text (PDF 07 - Intro to Adjusting Entries) This equipment continues to be used and should be depreciated for the month of July The following information relates to the new equipment which was purchased on July 1, 2021 - The new equipment was placed into service on July 1, 2021 and should be depreciated for the month of July The estimated useful life of the new equipment is 5 years. At the end of 5 years, the new equipment will have no future value and will be scrapped The new equipment will be depreciated using the straight-ine method Supplies: At the end of July there are $24.150.00 supplies on-hand Mowing Service at the University: The monthly mowing service was provided to the university per the contract signed on April 1, 2021 For information on the contract with the university and the related advance payment, see Pages 95 and 98 in the Solid Footing text (PDF 08 - Agusting Entries Continued) Wages Due the Employees: The last wage payment was made to the employees on July 28, 2021. The employees worked on July 29, 30, and 31. For these three days of work the employees eamed 53,375.00 of wages. These three days of wages will be paid to the workers during the first week of August Bank Loan: The interest on the loan from 1st Bank will be paid every three months. The first interest payment to the bank will be made on September 30, 2021. Lenny's calls the bank on July 31 and the bank indicates that the interest on the loan for July is $915.00 Directions Trans Chart Accts Journal GL Assets GL Lab Equity GL RevExp Trial Bal IS & SEquity Balsht Type here to search ignol B2 2 fo Lenny's Lawn Service, Inc. - Chart of Accounts Account # Account Name 100 105 110 150 155 200 205 210 215 220 250 Assets: Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Liabilities: Accounts Payable Wages Payable Interest Payable Unearned Revenue Dividends Payable Note Payable Equity: Common Stock Retained Earnings Revenues: Service Revenue Expenses: Supplies Expense Mower Repair Expense Wages Expense Truck Rental Expense Depreciation Expense Interest Expense 300 305 400 500 505 510 515 520 550 Directions Trans Chart Accts Journal GL Assets GL Lab-Equity GL Rev Exp Trial Bal IS & SE Type here to search O AL Arial 10 B 1 19 - lil II Clipboard Font 11 Alignment Numb Lenny's Lawn Service, Inc. Jena Cooper General Journal Page #1 2021 Month-Day 7-1 Posted Debit Account Number 100 250 Credit Account Name Cash Notes Payable Borrowed on Note Payable 35,000.00 X X 35,000.00 Directions Trans Chart Accts Journal GL Assets Gl Lab Equity GL Rev Exp Trial Bal IS & SEquity Bals ad EF Type here to search O @ I E A SU 6 = = . B TUBA Clipboard Font Alignment Nur C11 Lenny's Lawn Service, Inc. General Journal Page #2 2021 Month-Day Account Number Account Name Posted Debit Credit Directions Trans Chart Accts Journal GL Assets GL Lab Equity GL Rev Exp Trial Bal IS & SEquity Type here to search O IZ 2 C 99. A Nume Clipboard Alignment Font 011 > Lenny's Lawn Service, Inc. - General Journal Page 3 2021 Month-Day Account Number Account Name Posted Debit Credit Direction Trans Chart Accts Journal GL Assets GL Liab-Equity GL Rev-Exp Trial Bal IS & SEquity Heady Type here to search o E 1 A Clipboard Font Alignment NO C11 Lenny's Lawn Service, Inc. - General Journal Page #4 2021 Month-Day Account Number Account Name Posted Debit Credit Directions Trans Chart ACCES Journal GL Assets GL Liab-Equity GL Rev-Exp Trial Bal IS & SEquity ody Type here to search 0 RI @ E ED 99 1 Font Clipboard Nu Alignment 11 Lenny's Lawn Service, Inc. - General Journal Page 5 2021 Month-Day Account Number Account Name Posted Debit Credit Directions Trans Chart Acets Journal GL Assets GL Lab Equity GL Rev-Exp Trial Bal IS & SEquity Real EL Type here to search O BE E 8 ili II Clipboard Fort Alignment Number 11 Jena Cooper Lenny's Lawn Service, Inc. General Ledger Account # 100 Cash Enter am typing in Do NOT General Journal Page 1 Debit 2021 Month-Day 7-1 7-1 Credit Beginning Balance 38.250.00 35,000.00 Balance 38,250.00 Dr 73,250.00 Dr 1 Account # 105 Accounts Receivable 2021 Directions Journal Trans Chart Accts Journal GL Assets GL Liab-Equity GL Rev-Exp Trial Bal IS & SEquity Balsh Type here to search O FI . 99 3 $%6 1 A IM00 Clipboard Ton Alignment Number 11 X f Account # 105 Accounts Receivable 2021 Month-Day Journal Page : Debit Credit Balance 7.1 Beginning Balance 33,500.00 33,500.00 DE Account # 110 Supplies 2021 Month-Day 7-1 Beginning Balance Journal Page 3 Debit Credit 4,375.00 Balance 4,375.00 Dr Account # 150 Equipment 2021 Month Day 7-1 Journal Page Debit Credit Balance Beginning Balance 48,000.00 48,000.00 D Directions Trans Chart Accts Journal GL Assets GL Liab Equity GL Rev.bp Trial Bal IS & SEquity Balsh Read Type here to search O E 99. Arial 10 B - - A IM U $ % 48 18 de Chipboard Font Alignment Number 11 X f Account # 110 Supplies 2021 Month-Day 7-1 Journal Page Credit Debit 4,375.00 Balance 4,375.00 Dr Beginning Balance Account # 150 Equipment 2021 Month Day 7-1 Journal Page 1 Debit Credit Balance Beginning Balance 48,000.00 48,000.00 DE Account # 155 Accumulated Depreciation 2021 Month Day 7-1 Journal Page Debit Credit Balance Beginning Balance 18,000.00 18,000.00 Cr Directions Trans Chart Accts Journal GL Assets GL Lab Equity GL Rev.Exp Trial Bal IS & SEquity Bals E Type here to search O AL E 99 LU AI 8 8 se TAI 11 1 Font Clipboard Number Alignment 10 X Jena Cooper Lenny's Lawn Service, Inc. General Ledger G Enter and typing in Do NOT General de Account # 200 Accounts Payable Journal Page 1 Debit Credit 2021 Month-Day 7-1 Balance Beginning Balance 0.00 0.00 Cr Account # 205 Wages Payable Journal Pages Debit 2021 Month Day 7-1 Credit Balance 0.00 CE Beginning Balance 0.00 Account # 210 Interest Payable Journal Page Debit 2021 Month Day 7-1 Credit Balance 0.00 CE Beginning Balance 0.00 Account 215 Unearned Revenue Directions Trans Chart Accts Journal GL Assets GL Liab-Equity GL Rev Exp Trial Bal IS & SEquity Bal wady * Type here to search O R! E 994 REVIEW View Help Ariel 10 A IIIII Silit B 3 1 19 Clipboard Font Alignment Number C10 x fo Supplies Expense Account # 500 2021 Month-Day 7-1 Journal Page : Debit Credit Beginning Balance Balance 0.00 Dr 0.00 Account # 505 Mower Repair Expense 2021 Month-Day 7-1 Journal Page 1 Credit Debit 0.00 Beginning Balance Balance 0.00 DE Account # 510 Wages Expense 2021 Month Day 7-1 Beginning Balance Journal Page Debit Credit Balance 0.00 DE 0.00 Directions Trans Chart Act Journal GL Assets GL Lab Equity GL Rev Exp Trial Bal Real IS & SEquity Balsht Type here to search O 99. !!! All - 10 A A I - 4A 2 88 Clipboard Fone Alignment Number CO f Account # 515 Truck Rental Expense Journal Page Debit Credit 2021 Month Day 7-1 Beginning Balance Balance 0.00 0.00 Dr Account w 520 Depreciation Expense 2021 Month-Day 7-1 Journal Page Debit Credit Balance Beginning Balance 0.00 0.00 Dr Account # 550 Interest Expense 2021 Month-Day 7-1 Journal Page 1 Debit Credit Balance Beginning Balance 0.00 0.00 DE Directions Trans Chart Acces Journal GL Assets GL Liab-Equity GL Rev-Exp Trial Bal IS & SEquity Balsh ER Type here to search O RI E 994 AutoSave On URUALLL 8- Review View Data Formulas Help File Draw Insert Home Page Layout 29 A Arial 12 - A li IS Pal 8 1 EA Number Alignment Font Clipboard E6 Jena Cooper Lenny's - July 31, 2021 Pre-Closing Trial Balance Account Name Debit Credit CAUTION Enter amounts into the Pre-Closing by typing in the amounts. Do NOT copy cells from the General Account 100 105 110 150 155 200 205 210 215 220 250 300 305 400 500 Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Wages Payable Interest Payable Uneamed Revenue Dividends Payable Note Payable Common Stock Retained Earnings Service Revenue Supplies Expense Mower Repair Expense Wages Expense Truck Rental Expense Depreciation Expense Interest Expense Totals 505 510 515 520 550 0.00 0.00 Directions Trans Chart Accts Journal GL Assets Gl Lab Equity GL Rev-Exp Trial Bal IS & SEquity Rally E Type here to search O C AutoSave On URUALLL 8- Review View Data Formulas Help File Draw Insert Home Page Layout 29 A Arial 12 - A li IS Pal 8 1 EA Number Alignment Font Clipboard E6 Jena Cooper Lenny's - July 31, 2021 Pre-Closing Trial Balance Account Name Debit Credit CAUTION Enter amounts into the Pre-Closing by typing in the amounts. Do NOT copy cells from the General Account 100 105 110 150 155 200 205 210 215 220 250 300 305 400 500 Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Wages Payable Interest Payable Uneamed Revenue Dividends Payable Note Payable Common Stock Retained Earnings Service Revenue Supplies Expense Mower Repair Expense Wages Expense Truck Rental Expense Depreciation Expense Interest Expense Totals 505 510 515 520 550 0.00 0.00 Directions Trans Chart Accts Journal GL Assets Gl Lab Equity GL Rev-Exp Trial Bal IS & SEquity Rally E Type here to search O C Font D6 Alignment Number Shes Jena Cooper Lenny's Lawn Service, Inc. Income Statement for the Month Ended July 31, 2021 CAUTION Enter amounts into the Financial Statements by typing in the amounts Do NOT copy cells from the General Ledger or Pre-Closing Trial Balance Service Revenue Operating Expenses Supplies Mower Repair Wages Truck Rental Depreciation Total Operating Expenses Income from Operations Interest Expense Net Income Note the new line item on Lenny's Income Statement Income from Operations. This is Lenny's income from the normal operations of the lawn mowing business Interest Expense, which is not a cost of operating the business but rather a cost of financing the business, is shown below Income from Operations. Interest Expense is subtracted from Income from Operations to arrive at Net Income 0.00 0.00 $0.00 Lenny's Lawn Service, Inc. Statement of Stockholders' Equity for the Month Ended July 31, 2021 This is the first time you have prepared a formal Statement of Stockholders' Equity for Lenny's. This statement shows what caused the change in Common Stock and in Retained Earnings from July 1, 2021 to July 31, 2021 Note that the Retained Earnings column on the statement looks different than the calculation you have been doing each month to determine the Retained Earnings amount needed for the Balance Sheet Beginning Balance is the starting amount. In previous Retained Earnings calculations, you used Current Balance as the starting amount Beginning Balance is the starting point for this calculation, because Dividends is shown as a line item (a deduction) in the Retained Earnings column Common Stock Retained Earnings Beginning Balance July 1, 2021 Issue Common Stock Net Income Dividends Ending Balance July 31, 2021 Total $0.00 0.00 -0.00 0.00 $0.00 The Ending Balance in the Retained Earnings column is the balance needed for the Balance Sheet $0.00 $0.00 Directions Trans Chart Accts Journal GL Assets GL Liab-Equity GL Rev-Exp Trial Bal 15 & SEquity Batsht Post Close TB lear Jenni Cooper Lenny's Lawn Service, Inc. Balance Sheet as of July 31, 2021 CAUTION Enter amounts into the Balance Sheet by typing in the amounts Do NOT copy cells from the General Ledger or Pre-Closing Trial Balance Assets 0.00 Current Assets Cash Accounts Receivable Supplies Total Current Assets Property & Equipment: Equipment Accumulated Depreciation Property & Equipment, net Total Assets 0.00, $0.00 Note the following three new sub-totals appearing on Lenny's Balance Sheet: Total Current Assets is a total of those assets, which will turn into cash during the next 12 months or be consumed during the next 12 months. The comparison of Total Current Assets to Total Current Liabilities gives some indication of Lenny's liquidity - that is, its ability to pay its bills in the short-term Property & Equipment, net is the amount of Fixed Asset cost, which remains to be depreciated in future accounting periods Total Current Liabilities is a total of those liabilities that will require payment in the next 12 months. In the case of Unearned Revenue, this current liability will be "paid-off" by Lenny's delivering mowing services to the university 0.00* Liabilities & Stockholders' Equity Current Liabilities: Accounts Payable Wages Payable Interest Payable Uneamed Revenue Total Current Liabilities Long-Term Liabilities Note Payable Total Liabilities Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities & Stockholders' Equity 0.00 0.00 $0.00 Directions Trans Chart Accts Journal GL Assets GL Lab Equity GL Rev-Exp Tral BaliS & SEquity BalSht Post Close TB = = U - -- A Clipboard TV Font Alignment Number Cooper Lenny's - July 31, 2021 Post-Closing Trial Balance Account Debit Credit CAUTION Enter amounts into the Post-Closing Trial Balance by typing in the amounts Do NOT copy colls from the General Ledger 100 105 110 150 155 200 205 210 215 220 250 300 305 400 500 505 510 515 520 550 Account Name Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Wagus Payable Interest Payable Unearned Revenue Dividends Payable Note Payable Common Stock Retained Earnings Service Revenue Supplies Expense Mower Repair Expense Wages Expense Truck Rental Expense Depreciation Expense Interest Expense Totals 0.00 0.00 Directions Trans Chat Act Journa Gl Assets GL Lab Equity Glev op Trial al IS & SEquity ia5M Post Claret Type here to search O o Lenny's Lawn Service, Inc. Transactions Additional Information OO July 2021 Transactions Date Description of the Transaction July 1 Borrow 535,000.00 from 1st Bank by signing a 24 month note (As an example of how to journalize and post a transaction this transaction has already been entered into the General Journal and posted to the General Ledger July 1 Receive $65,700.00 cash from new investors, and issue 365,700.00 of Common Stock to them. July 1 Purchase $43,800.00 of new mowing equipment, paying cash to the mower dealer July 1 Pay $500.00 cash for the July truck rental. July 3 Invoice a new customer $4.725.00 for a completed mowing job - customer will pay in 10 days July 5 The Board of Directors declares a cash dividend. The total amount of the dividend is $25,000.00 The Date of Record is set as July 15. The Date of Payment is set as July 31, July 7 Pay the employees $5,800.00 for work performed during the 1st week of July July 10 Complete a mowing job for a new customer - customer pays $4,200.00 cash for the job. July 12 Collect $3,500.00 cash from the golf course for special rush mowing job completed on May 31, July 14 Pay the employees $7,000.00 for work performed during the 2nd week of July July 15 Purchase $1,020.00 of supplies from the mower dealer. The supplies are consumed immediately Lenny's will pay the mower dealer for the supplies in about 2 weeks July 15 Collect 54.725 00 on account the cash that is received is from the new customer for the job that was completed on July 3 July 17 One of the orginal mowers purchased in January of 2020 broke down and is repared by the mower dealer. The cost of the Mower Repair job is $420,00 Lenny's will pay the mower dealer in 30 days . Director Trans Chart Accts Jun Ace