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Question

The following are the transactions relating to the formation of Cardinal Mowing Services, Inc., and its first month of operations.

a.The firm was organized and the initial stockholders invested cash of $720.

b.The company borrowed $1,080 from a relative of one of the initial stockholders; a short-term note was signed.

c.Two zero-turn lawn mowers costing $576 each and a professional trimmer costing $156 were purchased for cash. The original list price of each mower was $732, 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 $108.

e.Advertising flyers announcing the formation of the business and a newspaper ad were purchased. The cost of these items, $204, 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 $846; $558 was collected in cash, and the balance will be received within 30 days.

g.Employees were paid $504 for their work during the first two weeks.

h.Additional gasoline, oil, and trash bags costing $132 were purchased for cash.

i.In the last two weeks of the first month, revenues totaled $1,104, of which $450 was collected.

j..Employee wages for the last two weeks totaled $612; 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 $36.

l.Customers paid a total of $180 due from mowing services provided during the first two weeks. The revenue for these services was recognized in transaction f.

The following are the transactions relating to the formation of Cardinal Mowing Services, Inc., and its first month of operations. a. The firm was organized and the initial stockholders; invested cash of $720. b. The company borrowed $1, 080 from a relative of one of the initial stockholders; a short-term note was signed. c. Two zero-turn lawn mowers costing $576 each and a professional trimmer costing $156 were purchased for cash. The original list price of each mow was $732, 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 $108. e. Advertising flyers announcing the formation of the business and a newspaper ad were purchased. The cost of these items, $204, will be paid in 30 days. f. During the first two weeks of operations, 47 lawns were moved. The total revenue for this work was $846; $558 was collected in cash, and the balance will be received within 30 days. g. Employers were paid $604 for their work during the first two weeks. h. Additional gasoline, oil, and trash bags costing $132 were purchased for cash. i. In the last two weeks of the first month, revenues totaled $1, 104, of which $450 was collected. j. Employee wages for the last two weeks totaled $612; 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 $36. l. Customers paid a total of $180 due from mowing services provided during the first two weeks. The revenue for these services was recognized in transaction f. Required: a. Record each transaction in the appropriate columns. (If an transaction/Adjustment are not affecting the balance sheet category or income statement, leave the cells blank. Enter decreases to account balances as a negative.)