Question
Accounting Cycle Review Comprehensive Problem Below are the transactions for Broncho Landscaping Masters, Inc. for the month of May 2018. This is the company's first
Accounting Cycle Review Comprehensive Problem
Below are the transactions for Broncho Landscaping Masters, Inc. for the month of May 2018. This is the company's first month of operation.
a. May 1--Invested $10,000 cash and an SUV valued at $25,000 to start Broncho Landscaping Masters, Inc. The business issued 5,000 shares of no-par common stock in exchange for these assets.
b. May 3--Borrowed $30,000 from Last National Bank. The loan is due in 1 year and has an interest rate of 12%
c. May 5--Purchased a work truck from Charles Gray Motors for $6,000 cash
d. May 5--The Corporation purchased a six-month insurance policy for $2,400 and charged the amount to an asset account.
e. May 7--Performed landscape services for Peaceful Rest Cemetary and received $1,300 cash.
f. May 8--Completed a $7,200 landscaping job and billed Mercy Rest HOme for the amount due.
g. May 15--Paid employee salaries of $1,400.
h. May 16--Received $1,920 from Judge Judy for planting a rose garden.
i. May 17--Received $9,000 from Rest Well Cemetery for an annual maintenance contract. The amount was charged to a revenue account
j. May 18--Received a check from mercy Rest Home for the full amount due.
k. May 19--Received a bill from Edmond Telephone Company for $250.
l. May 19--Received an electric bill from Edmond Light and Power for $750
m. May 20--Purhcased fuel for the SUV and truck on credit for $225
n. May 21--Paid office rent of $1,800.
o. May 21--Purchased office supplies from Staples for $750 cash and recorded them in an inventory account.
p. May 22--Paid the telephone bill and the electric bill
q. May25--Paid $95 to Slow-Joe Lube Company for auto service.
r. May 30--Received cash of $2,300 for several landscaping jobs.
s. May 31--Paid a cash dividend of $1,500.
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