Accounting Cycle Project, I need help in the journal, GL assets, GL liab-equity, GL Rev-Exp, Trai Bal, IS&SEquity, BalSht, Post Close TB,

I don't know how to find out the supplies expense and the depreciation expense

please check my work, I think that I am wrong

Lenny's Lawn Service, Inc. - Transactions - Additional Information E 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 journalize and post a transaction -- this transaction has already been entered into the General Journal and posted to the General Ledger.) July 1 Receive $68,700.00 cash from new investors, and issue $68,700.00 of Common Stock to them. July 1 Purchase $44,700.00 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 $5,130.00 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. Directions Trans Chart Accts Journal Z GL Assets GL Liab-Equity_Z GL Rev-Exp_Trial Bal IS & SEquity Balsht Post Close TB INI C2 fa 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 $5,130.00 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 $575.00. Lenny's will pay the mower dealer in 30 days. July 19 Purchase for cash $22,750.00 of supplies. These supplies will 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 $23,750.00 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 $5,350.00 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 $19,900.00 for July mowing work. The property Trans Chart Accts Journal GL AssetsGL Lab-Equity_ZGL Rev-ExpTrial Bal IS & SEquity Balsht Post Close TB KI Directions C2 July 28 Pay the employees $6,100.00 for work performed during the 4th week of July July 31 Invoice the property management company $19,900.00 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. 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-line method. Supplies: At the end of July there are $24,000.00 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 - Adjusting Entries Continued). KI Directions Trans Chart Accts Journal Z GL Assets GL Liab-Equity GL Rev-Exp_Trial Bal IS & SEquity Balsht Post Close TB 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-line method. Supplies: At the end of July there are $24,000.00 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 - Adjusting 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 earned $3,525.00 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 $960.00. Directions Trans Chart Accts Journal GL AssetsGL Liab-Equity GL Rev-ExpTrial Bal/IS & SEquity Balsht Post Close TB PROPERTY, PLANT, & EQUIPMENT and THE DEPRECIATION ADJUSTING ENTRY The Accumulated Depreciation account is one of the accounts that will require an adjusting entry at the end of each accounting period. Before discussing the Accumulated Depreciation account, let's first discuss the long-term asset accounts that are related to Accumulated Depreciation. Companies buy many types of long-term assets. Long-term assets are assets a company will keep and use for more than one year. Most long-term assets purchased by a company are of the Property, Plant, & Equipment type. Lenny's lawn mowing equipment is an example of a Property, Plant, & Equipment asset. Property, Plant, & Equipment assets are also called Fixed Assets. Observe on the January tab that Lenny's has a 548,000 balance in its Equipment account. This equipment was purchased over a year ago, on January 2, 2020, when Lenny's started in business. At that time, Lenny's estimated: The lawn mowing equipment would last for four years (48 months). At the end of the four years, the equipment would have no future value and would be scrapped. Therefore, for each month that Lenny's uses the lawn mowing equipment, 1/48th of the equipment's service life is used up. If the balance in the Equipment account is reduced by 1/48 of its original cost each month; then by the end of four years, the balance in the Equipment account will be zero. The calculation of the monthly reduction amount is: Equipment Cost Months of Useful Life = Monthly reduction in Equipment account $48,000 48 months = $1,000 per month The $1,000 is called the monthly depreciation. Depreciation is the process of allocating the cost of Property, Plant, & Equipment to the accounting periods in which these assets are used. There are many different ways to calculate the amount of depreciation. The above method is called the straight-line depreciation method because the amount of depreciation is the same each accounting period. Only the straight-line depreciation method will be used in this book. LENNY'S APRIL TRANSACTIONS In this chapter, you will continue to use the Excel workbook that you used in Chapter 7 entitled Chapter 07 b - LENNY'S LAWN SERVICE (used in Chp 7 to 10). If this workbook is not open on your computer, do the following: Open the workbook Chapter 07 b - LENNY'S LAWN SERVICE (used in Chp 7 to 10) Enable Macros April tab You should see Screen 8 A in the upper left corner of the screen. RECEIVE ADVANCE PAYMENT TRANSACTION On April 1, Lenny's signs a contract to perform lawn services for a new customer. The new customer is a university in the Tampa area. The contract Lenny's signs with the university stipulates that Lenny's will be paid an $8,000 monthly fee for the lawn services. As part of the contract agreement, the university agrees to pay the first four months of services in advance; thus Lenny's receives $32,000 cash from the university on April 1. Advance Pmt. The $32,000 debit to the Cash account records the increase in cash that results from the advance payment. The credit portion of this entry is to the Unearned Revenue liability account. The Unearned Revenue account records the university's $32,000 claim to Lenny's assets. A liability account is increased because Lenny's has a future obligation to perform $32,000 of services for the university, and as of April 1, Lenny's has not earned any of the $32,000. The Unearned Revenue liability account is just like any other liability account. It records the claim to assets of someone in this case, the university) who is not an owner of the business. The one thing that does make the Unearned Revenue account different from most other liability accounts is that the Unearned Revenue liability will be "paid-off by Lenny's providing services to the university-not by Lenny's paying cash to the university On April 1, when Lenny's signed the contract with the university, Lenny's was paid $32,000 in advance for the first four months of services. During the month of April, Lenny's performed the lawn services for the university. The timeline below shows the period of service covered by the $32,000 Lenny's received on April 1. You can see from the timeline that on April 1, Lenny's owed the university $32,000 of services. The original $32,000 entry into the Unearned Liability account reflected Lenny's $32,000 liability for future services to the university. The timeline also shows the period of time and the dollar amount of services the university is still due as of the end of April. As of April 30, Lenny's owes the university three months of service. Each month of service has a value of $8,000; thus Lenny's owes the university $24,000 of future services as of April 30. Because the balance in the Unearned Revenue account tracks Lenny's liability for future services to the university, the April 30 balance in the Unearned Revenue account should be $24,000. Unearned Revenue Timeline + $32,000 April 1 May 31 June 30 July 31 April 30 + 2 3 $24,000 "T" Account Analysis for Asset and Liability Accounts Account Name Unearned Revenue (liability account) Debit Credit 1. What is the current balance? 32,000 3. What adjustment is required to adjust from the current balance to the should be balance? 8,000 2. What should be the balance? 24,000 7-31 25,000.00 220 100 Dividends Payable Cash 25,000.00 7-31 520 1,000.00 Depreciation Expense Accumulated Depreciation 155 1,000.00 7-31 520 Depreciation Expense Accumulated Depreciation XX 155 7-31 500 Supplies Expense Supplies Expense XX 110 7-31 8,000.00 215 400 Unearned Revenue Service Revenue X X 8,000.00 Lenny's Lawn Service, Inc. General Journal Page # 4 Posted Credit 2021 Account Account Name Month-Day Number 7-31 510 Wages Expense 205 Wages Payable Debit 3,525.00 3,525.00 7-31 550 960.00 Interest Expense Interest Payable X X 210 960.00 7-31 400 Service Revenue Retained Earnings 305 305 500 505 510 515 Retained Earnings Supplies Expense Mower Repair Expense Wages Epense Truck Rental Expense Depreciation Expense Interest Expense 575.00 29,525.00 500.00 520 550 960.00 100 105 110 150 155 200 205 210 215 220 250 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 Account # Account Name Debit Credit CAUTION Enter amounts into the Post-Closing Trial Balance by typing in the amounts. 92,960.00 23,850.00 Do NOT copy cells from the General Ledger. 575.00 3,525.00 960.00 100 105 110 150 155 200 205 210 215 220 250 300 305 400 500 505 510 515 520 550 Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Wages 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 35,000.00 118,700.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 116,810.00 158,760.00 Directions Trans / Chart Accts Journal/GL Assets GL Liab-Equity_GL Rev-Exp_Trial BalIS & SEquity_Balsht, Post Close TB Current Assets: Cash $92,960.00 Accounts Receivable 23,850.00 Supplies Total Current Assets 116,810.00 Property & Equipment: Equipment 92,700.00 Accumulated Depreciation Property & Equipment, net 92,700.00 Total Assets $209,510.00 Liabilities & Stockholders' Equity Current Liabilities: Accounts Payable $575.00 Wages Payable 3,525.00 Interest Payable 960.00 Unearned Revenue Total Current Liabilities 5,060.00 Long-Term Liabilities: Note Payable 35,000.00 Total Liabilities 40,060.00 Stockholders' Equity: Common Stock 118,700.00 Retained Earnings Total Stockholders' Equity 118,700.00 Total Liabilities & Stockholders' Equity $158,760.00 for the Month Ended July 31, 2021 DO NOT copy cens Trom the General Leuger or Pre-Closing Thai Dalance. Service Revenue (575.00) (29,325.00) (500.00) 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. (30,400.00) (30,400.00) (960.00) ($31,360.00) 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 Lenny's Lawn Service, Inc. from July 1, 2021 to July 31, 2021. Note that the Retained Earnings Statement of Stockholders' Equity column on the statement looks different than the calculation you for the Month Ended July 31, 2021 have been doing each month to determine the Retained Earnings amount needed for the Balance Sheet. Beginning Balance is the Common Retained starting amount. In previous Retained Earnings calculations, you Stock Earnings Total used Current Balance as the starting amount. Beginning Balance Beginning Balance July 1, 2021 $50,000.00 $50,000.00 is the starting point for this calculation, because Dividends is shown Issue Common Stock 68,700.00 68,700.00 as a line item (a deduction) in the Retained Earnings column. Net Income 0.00 Dividends (25,000.00) (25,000.00) The Ending Balance in the Retained Earnings column is the balance Godin. Dolonna lub 21 0021 410 700.00 reconn. 001 002 700.00 needed for the Balance Sheet KDirections TransChart Accts Journal Z GL Assets GL Liab-Equity_XGL Rev-Exp Trial Bal IS & SEquity Balsht Post Close TBC Account # Account Name Debit Credit Enter a Balanc 92,960.00 23,850.00 Do NO 92,700.00 575.00 3,525.00 960.00 100 105 110 150 155 200 205 210 215 220 250 300 305 400 500 505 510 515 520 550 Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Wages 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 35,000.00 118,700.00 575.00 29,325.00 500.00 960.00 240,870.00 158,760.00 Account # 520 Depreciation Expense Journal Page # Credit 2021 Month-Day 7-1 Beginning Balance 7-31 7-31 7-31 Debit 0.00 1,000.00 Balance 0.00 DI 1,000.00 DI 3 3 4 Account # 550 Interest Expense Journal Page # Debit Credit Balance 2021 Month-Day 7-1 Beginning Balance 7-31 7-31 0.00 960.00 4 0.00 Dr 960.00 Dr 0.00 DI 4 960.00 Account # 110 Supplies Journal Page # Debit Credit Balance 2021 Month-Day 7-1 Beginning Balance 7-19 7-31 4,375.00 22,750.00 4,375.00 Dr 27,125.00 D 2 3 Account # 155 Accumulated Depreciation Journal Page # Debit Credit Balance 2021 Month-Day 7-1 Beginning Balance 7-31 7-31 18,000.00 1,000.00 18,000.00 Cr 19,000.00 Cr