Question
a. The firm was organized and the initial stockholders invested cash of $900. b. The company borrowed $1,350 from a relative of one of the
a. | The firm was organized and the initial stockholders invested cash of $900. |
b. | The company borrowed $1,350 from a relative of one of the initial stockholders; a short-term note was signed. |
c. | Two zero-turn lawn mowers costing $720 each and a professional trimmer costing $195 were purchased for cash. The original list price of each mower was $915, but a discount was received because the seller was having a sale. |
d. | Gasoline, oil, and several packages of trash bags were purchased for cash of $135. |
e. | Advertising flyers announcing the formation of the business and a newspaper ad were purchased. The cost of these items, $255, will be paid in 30 days. |
f. | During the first two weeks of operations, 47 lawns were mowed. The total revenue for this work was $1,058; $698 was collected in cash, and the balance will be received within 30 days. |
g. | Employees were paid $630 for their work during the first two weeks. |
h. | Additional gasoline, oil, and trash bags costing $165 were purchased for cash. |
i. | In the last two weeks of the first month, revenues totaled $1,380, of which $563 was collected. |
j. | `Employee wages for the last two weeks totaled $765; these will be paid during the first week of the next month. |
k. | It was determined that at the end of the month the cost of the gasoline, oil, and trash bags still on hand was $45. |
l. | Customers paid a total of $225 due from mowing services provided during the first two weeks. The revenue for these services was recognized in transaction f. |
Required: |
a. |
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