6:11 GBBC0101_ACC1100_Final As... Part 1 - Full Accounting Cycle 150 marks! Ms. Freida has started a new Landscaping business in the name of Freida's Ferns on March 1, 2020. Following transactions have taken place during the first month of operation 1. March 18 - Started Freida's Ferns by bringing in $ 15,000 in cash and $ 5,000 worth of equipment 2. March 1st - Took an office space on rent of $ 1,000 per month and paid 3 months rent in advance. 3. March 1st - Recruited 4 members to work on landscaping and incurred $ 1,000 towards recruitments expenses 4. March 1" - Borrowed $ 8.000 from bank to invest in new equipment. 5. Mach 3 - Purchased a new lawn mower for $ 5,000 by paying $ 2.000 upfront and balance is agreed to be paid in 30days. 6 March 3 - Purchased fuel for mowers - $ 1,200. 7. March 5- Received an advance of $ 200 from Mr. Henry for landscaping work. 8. March 6 - Purchased office supplies on account - $ 600. 9. March 8-Paid for advertising on a home decor magazine - $1,500 10. March 134 - Paid $ 500 for repairing the mowers. 11. March 15th - Performed 200 hours of land mowing work for first 2 weeks including 5 hours on Mr. Henry's. Charged a flat rate of $ 40 per hour of work. All charges collected on same day except for 50 hours of work on Mr. Roy's lawn. 12. March 16h - Paid a 1" bi-weekly salary of $ 2,500. 13. March 19h Paid the balance for equipment purchased on March 3 14 March 20" - Purchased fuel for mowers - $ 1,000. 15. March 21 - Received a utilities bill for $ 1,100 and is not paid yet. 16. March 25 - Purchased and paid for an insurance policy (effective from April 19 for 1 year -$ 2,400 17. March 31" - Performed 180 hours of land mowing work in last 2 weeks. Invoiced $ 40 per hour. All charges are collected except for 30 hours of work on RON 6:11 TO DOVORE GBBC0101_ACC1100_Final As... - VICCIO magazine - $1,500. 10. March 134 - Paid $ 500 for repairing the mowers. 11. March 15" - Performed 200 hours of land mowing work for first 2 weeks including 5 hours on Mr. Henry's. Charged a flat rate of $ 40 per hour of work. All charges collected on same day except for 50 hours of work on Mr. Roy's lawn. 12. March 16h - Paid a 1" bi-weekly salary of $ 2,500. 13 March 19h - Paid the balance for equipment purchased on March 30 14 March 20+ - Purchased fuel for mowers - $ 1,000. 15 March 21" - Received a utilities bill for $ 1,100 and is not paid yet. 16. March 256 - Purchased and paid for an insurance policy (effective from April 14) for 1 year $ 2,400 17. March 314 - Performed 180 hours of land mowing work in last 2 weeks. Invoiced $ 40 per hour. All charges are collected except for 30 hours of work on Mr. Jenson's lawn. 18. March 31s - Paid the 2nd bi-weekly salaries - 5 2,500 19. March 31" - Charge one month rent and adjust the advance paid for rent (means increase the expense and reduce the asset) 20. March 31st - Paid $ 50 towards interest on loan. Required 1. Prepare journal entries for the transactions given above [20 marks] 2. Prepare 'T' Accounts (all accounts - cashA/c - 2 marks rest each) [20 marks] 3. Prepare a Trial Balance as at the end of March 31" [5 marks] 4. Prepare a Income Statement for the month of March and Balance Sheet as at the end of March 31". (Add net income to Owners' Equity) (5 marks] Hanson International Academy -WINTER 2020 Page 5 of 2
