Business Background

Assume that you established Green Thumb Gardening Services (a fictional business) on 1 May 2023 in Sydney. The company provides quality gardening services including lawn care, tree trimming and garden design in Sydneys Northern Beaches. You are required to complete the following tasks in order to prepare the businesss financial statements as at 31 st May 2023.

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Create a Trial Balance

PLEASE NOTE: You do not need to enter all transactions at the same time, however, please ensure you record the transactions in chronological order and use the dates given for each transaction. If you do not enter the correct dates, Xero will default to the date you are entering the transaction. 1/05/2023 You invested $30,000 cash to commence the business (Hint: From the accounting menu choose the manual journal function to enter this transaction). 3/05/2023 The business purchased a 12-month insurance policy for the business from Shield Insurance for $3,600 for the period 1 May 2023 to 30 April 2024. The due date for payment of this invoice is 30 days from the date the invoice was issued. The reference number is 2579. (Hint: From the business menu use the bills to pay function to enter this transaction as a new bill. Ensure you approve and save it). 4/05/2023 The business negotiated to borrow $25,000 from Southern Cross Bank Ltd for two years. The loan was due to be repaid by May 2025. (From the ' + ' menu use the receive money function to enter this transaction and choose direct payment. You can ignore the reference column.) 08/05/2023 The business purchased new gardening equipment for $9,500 on credit from All Green Gardening Centre. The reference number is 561 . The invoice is due to be paid by the 22nd May 2023. (Hint: From the business menu use the bills to pay function to enter this transaction as a new bill. Ensure you approve and save it.) 11/05/2023 Provided gardening services to a new client Tony Fletcher and invoiced him $2,100. This invoice is due to be paid by the 25th May 2023 and the reference number is 3064 . The invoice number should be auto generated as Inv-0001. (Hint: From the business menu use the invoices function to enter this transaction as a new invoice. Ensure you approve and save it.) 12/05/2023 Purchased and paid $1,360 for gardening supplies from Quality Garden Suppliers to be used for garden maintenance. The reference number is 1490. (Hint: From the ' + ' menu use the spend money function to enter this transaction and choose prepayment.) (Add a new current asset account "Gardening Supplies". Use "122" as the Account Code. Ensure you SAVE the details). 15/05/2023 Designed a new garden for Seabreeze Properties' office premises in Dee Why and invoiced the client $5,700. This invoice is due to be paid by the 29th May 2023 and the reference number is 9423 . The invoice number should be auto generated as Inv-0002. (Hint: From the ' + ' menu use the invoice function to enter this transaction. Take care you choose the correct revenue account.) 16/05/2023 Received and paid an invoice for $770 from The Mower Medic for repairs to the ride-on lawn mower. The reference number is 2485. (Hint: From the ' + ' menu use the bill function to enter this transaction. Ensure you approve and pay it on the same day.) 18/05/2023 Provided lawn mowing services to Saddleridge Horse Stables and invoiced the client $4,200. This invoice is due to be paid by the 28th May 2023 and the reference number is 4367 . The invoice number should be auto generated as Inv-0003. (Hint: From the business menu use the invoices function to enter this transaction as a new invoice. Ensure you approve and save it.) 20/05/2023 Tony Fletcher paid its outstanding invoice issued on the 11th May 2023 in full. (Hint: From the business menu use the invoices function to receipt this cash by selecting the invoice and completing the receive payment details.) 21/05/2023 Paid All Green Gardening Centre for the new gardening equipment purchased on the 8th May 2023. (Hint: From the business menu use the bills to pay function to pay this outstanding bill by selecting the bill and completing the payment details.) 24/05/2023 Completed a gardening services project for Terry Hillside Public School including lawn care, tree trimming and weeding services. The client was invoiced $3,400 for the total cost of the gardening services project. This invoice is due to be paid by the 24th June 2023 as the client was given extended credit terms. The reference number is 1478 . The invoice should be auto generated as Inv-0004. (Hint: From the ' + ' menu use the invoice function to enter this transaction. Take care you choose the correct revenue account.)