Question
April 1, 2016 The stockholders purchase 7,500 shares of $10 par value stock. Total cash received is $75,000. April 1, 2016 The company took a
April 1, 2016 The stockholders purchase 7,500 shares of $10 par value stock. Total cash received is $75,000.
April 1, 2016 The company took a $30,000 business loan from a local bank. The loan is "interest only" loan for three years at a fixed rate of 10%. A ballon payment of the principal will be due in 3 years. The montly interest payment is due by the 10th of the following month.
April 1, 2016 Management rents a combination office and garage facility for $1,000 per month and pays 4 months ($4,000) in advance by cash in addition to a $1,500 security deposit.
April 1, 2016 Purchased a truck valued at $45,000 with a $15,000 down payment and a 4-year $30,000 note payable with an annual interest rate of 5%. The truck has a 5-year useful life and no salvage value. The monthly payment including principal and interest is $690.88.
April 1, 2016 Purchased used equipment and trailers for $25,000 cash. The equipment and trailers have a 5-year useful life and no salvage value.
April 2, 2016 Purchased on account Lawn & Garden Supplies in the amount of $6,000 from Wintergreen Garden Center.
April 4, 2016 Dorsey contracted with two local businesses, Preston Hill B & B and Grace's Diner to provide monthly llandscaping service at a rate of $650 per month. Dorsey Landscape will bill the businesses at the end of each month.
April 6, 2016 Purchased $500 of office supplies on account from ABC Office Supply.
April 8, 2016 Paid invoice from Insurance company for 4 months of coverage beginning April 1, 2015 for a total of $1,600.
April 10, 2016 Receipts of cash from landscaping services in the amount of $5,200 were deposited to bank.
April 14, 2016 Paid 1/2 of amount owed to Wintergreen Garden Center.
April 16, 2016 Paid $1,200 in wage expense for the period April 1 - April 15, 2015.
Aprl 19, 2016 Paid ABC Office Supply invoice for purchases on April 6, 2016.
April 20, 2016 Received $7,500 in cash and checks for landscaping services rendered.
April 24, 2016 Returned $500 worth of lawn and garden supplies to Wintergreen Garden Center and received credit on account.
April 25, 2016 Received $1,000 advance deposit from customer for landscaping work to be stared in May 2016.
April 28, 2016 Paid remaining balance owed to Wintergreen Garden Center.
April 30, 2016 Truck Payment # 1 - Total $690.88 (Principal = $565.88; Interest = $125.00)
April 30, 2016 Paid $1,400 in wages expense for the period April 16 - April 30, 2016.
April 30, 2016 Pay credit card in full with the following charges incurred in April 2016: Gasoline - $625; Equipment Maintenance - $375; Dues - $150; Uniforms - $425; Advertising $375; Postage $100 April 30, 2016 Sent invoices to Grace's Diner and Preston Hill B & B for monthly lawn service.
April 30, 2016 Paid dividends to shareholders in the amount of $500. Prepare and post the closing entries for the month ended April 30, 2016.
Note the following additional information:
1. The business began on April 1, 2016
2. The period under consideration is April 1, 2016 - April 30, 2016.
3. ignore the effects of income tax, property tax, sales tax, and payroll tax.
4. Straight-line depreciation method is used.
5. On April 30, 2016, the company had $150 of Office Supplies and $850 of Lawn & Garden Supplies on hand
. 6. The telephone bill for April 2016 for $260 was received May 2016 .
7. The utility bill for April 2016 for $185 was received May 2016
. 8., consider the note payable for the truck purchase to be a current liability.
prepare trial balance
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started