Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ace Lawn Care Module 2 Mini Practice Problem Jim has asked you to prepare financial statements for his first month of operation. The following information

image text in transcribed
image text in transcribed
Ace Lawn Care Module 2 Mini Practice Problem Jim has asked you to prepare financial statements for his first month of operation. The following information relates to the month of May 2014. (Round all calculations to the nearest whole dollar) I. On May 2, Jim signed a 1 year, 6% note for $3.500 associated with the purchase of a used truck for the business. The interest will be due with the principle of the note. 2. On May 2, Jim purchased a used truck for $7,000 to use for the lawn care business. He estimates a trade-in value of S500 at the end of the estimated five-year life of the truck 3. On May 5, Jim purchased a lawn mower for $300 and an aerator for $500. He estimates $0 salvage value for both pieces of equipment and an estimated two-year life for both. 4. On May 6, Jim writes a $600 check for a six month insurance policy that expires October 31, 2014. Instructions: 1. Using the chart of accounts provided, and the Excel template provided with this assignment, record the adjustments in the Worksheet, calculate the adjusted trial balance and complete the worksheet 2. Prepare the Income Statement, Statement of Owner's Capital and Balance Sheet for Ace Lawn Care for May, 2014 3. Prepare journal entries, in good form, to record the May adjusting entries. Explanations are optional. Start with Page 3 of the General Journal for the adjusting entries. 4. Post the journal entries to general ledger accounts. There are already transactions in the ledger for the month, you are adding to those transactions. 5. Prepare and post the closing entries for May, 2014. Start with Page 4 of the General Journal for the closing entries 6. Prepare a post-closing trial balance as of May 31, 2014, for Ace Lawn Care. Ace Lawn Care Chart of Accounts 120 Supplies 130 Prepaid Insurance 150 quipment 155 Accualated Depeeciation-Eqsipme 220 Notes Payable Aocounts Payable Inerest Payable Owner's Capital OWNER'S EQUITY 3 05 Owner's Drawings 310 Income Summary 401 Lawn Service Reve 620 Sapplies Exense 630 Fuel Expense REVENUES Repair and Mainienance Expense 650 Advertising Expeme Insurance Expense 670 Deprociaton Expense

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Tips For The New Auditor

Authors: Marty Sturino

1st Edition

1733097813, 978-1733097819

More Books

Students also viewed these Accounting questions

Question

Describe how different theorists explain change.

Answered: 1 week ago