A B C D E 1 F G H J K M N Company Information & Summary of Significant Account Policies 2 Lawn King Company began operations on November 1, 2024. The main operating goal of the company is to sell high end 3 tractors. Customers may pay using cash or if appropriate, a credit is extended to customers with terms 2/10, n/30. 4 The company uses the perpetual inventory method and a FIFO cost system. The company follows a calendar year, with all 5 adjusting entries made at the end of the accounting period, December 31. The company uses the straight-line depreciation 6 for all depreciable assets. The company has decided to use the Allowance method to account for uncollectible accounts. At 7 the end of the period, based on industry standards, the company believes 1% of the balance in accounts recievable will be 8 uncollectible. The company purchases tractors for resale only as such they carry them as inventory. 9 10 The company has two employees, one is a sales technician, salary of $4000 per month and the other employee is the office 11 manager with a salary of $6000 per month. Payroll is processed on the last day of the month, and paid on the first day of the 12 following month. This means the November 30 payroll with accrue into Salaries Payable and then be paid on Decemember 1. 13 14 Required: 1) Lawn King Company engaged in the following transactions for November and December. Record the following transactions on the 15 Daily Transactions tab. Note: Place debits first, credits second but do NOT indent credits. If more than one debit or credit, please list in alphabetical order to 16 receive full credit. 17 1-Nov The owner invested $130000 into the company in exchange for 5,000 shares of common stock. 1-Nov The company purchased a computer system for $20000 and signed a one-year note for the entire balance. The note is due on November 1, 2025 and has an annual rate of interest of 3%. 18 19 2-Nov Paid for two years rent on the office space, $18000. 20 3-Nov Purchased 10 tractors at a total cost of $1100 each for cash, FOB Destination. 21 4-Nov Purchased $1700 of supplies on account, term n/30. 222 23 24 Equity Statement Balance Sheet Cl 15-Nov Purchased 12 tractors at a total cost of $1210 each on account, terms n/30, FOB Destination. Shipping of $150 was paid to the shipping company by the appropriate party. 17-Nov Paid for the supplies purchased on November 4. 18-Nov Paid for a two-year insurance policy for the store, $12000. The policy was effective beginning December 1, 2024. 20-Nov Sold 17 tractors for $3200 each on account, terms 2/10, n/30, the company uses FIFO to find the cost of goods sold. The printers were shipped FOB Shipping Point. Record the sales revenue first. 28-Nov Received payment in full on account from the November 20 sale. 29-Nov Paid for November's utilities bill $1700. Prepared payroll for the month of November, the first payroll for the company. Record the Salares Expense entry first. 2225 26 27 79F Instructions Daily Transactions Adjusting Entries Ledger Adjusted Trial Balance Income Statement