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Below are the transactions for Broncho Landscaping Masters, Inc. for the month of October 2021. This is the company's first month of operation. Its owner
Below are the transactions for Broncho Landscaping Masters, Inc. for the month of October 2021. This is the company's first month of operation. Its owner is a retired University of Central Oklahoma professor who wants to launch a career on HGTV as a landscape designer. a. October 1--Invested $22,000 cash and an SUV valued at $60,000 to start Broncho Landscaping Masters, Inc. The business issued 10,000 shares of no-par common stock in exchange for these assets. b. October 3--Borrowed $75,000 from Last National Bank. The loan is due in 1 year and has an interest rate of 12%. c. October 5--Purchased a work truck from Danny Stewart Motors for $18,000 cash. d. October 5--The Corporation purchased a nine-month insurance policy for $8,100 and charged the amount to an asset account. e. October 7--Performed landscape services for Peaceful Rest Cemetery and received $5,500 cash. f. October 8--Completed a $34,000 landscaping job and billed Mercy Rest Home for the amount due. g. October 15--Paid employee salaries of $3,200. h. October 16--Received $4,800 from Judge Judy for planting a rose garden. i. October 17--Received $45,000 from Rest Well Cemetery for an annual maintenance contract. The amount was charged to a revenue account. j. October 18--Received a check from Mercy Rest Home for the full amount due. k. October 19--Received a bill from Edmond Telephone Company for $675. 1. October 19--Received an electric bill for $520. m. October 21--Purchased office supplies from Staples for $2,000 cash and recorded them in an inventory account. n. October 22--Paid the telephone bill and the electric bill. 0. October 25--Paid $300 to Slow-Joe Lube Company for auto service. p. October 31--Received cash of $7,500 for several landscaping jobs. 4. October 31--Paid a cash dividend to the owner of $3,200. 1. Journalize each of the above transactions in the general journal. 2. Open the following T accounts: a. Cash b. Accounts Receivable c. Supplies Inventory d. Prepaid Insurance e. Autos and Trucks f. Accumulated Depreciation g. Accounts Payable h. Salaries Payable i. Interest Payable j. Notes Payable k. Unearned Service Revenue 1. Common Stock m. Dividends n. Service Revenue o. Salaries Expense p. Depreciation Expense 4. Interest Expense r. Insurance Expense s. Fuel Expense t. Rent Expense u. Auto Expense v. Supplies Expense w. Utilities Expense X. Telephone Expense 3. Prepare an unadjusted trial balance as of October 31, 2021. 4. Journalize and post the adjusting journal entries on October 31, 2021. The following information is provided: a. Salaries incurred but not paid, $1,850 b. Depreciation expense on vehicles, $3,000 c. Interest expense has been accrued for one month on the note. d. Insurance for one month has expired. e. The company has performed one month of the service contract. f. Office supplies on hand, $625. 5. Prepare an adjusted trial balance as of October 31, 2021. 6. Prepare a balance sheet, income statement, and statement of shareholder equity as of October 31, 2021. Please list expenses in descending amounts on the income statement. 7. Journalize and post the closing entries to the T-accounts. 8. Prepare a post-closing trial balance as of October 31, 2021
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