can't get the ADDITIONAL INFORMATION portion correct on my Journal Entry which is messing up my TRIAL BALANCE. Please help!! **The supplies account is $4,375 beginning balance on July 1.

Beginning July 1 balances:

Cash: 38250 Acct Rec: 33500 Supplies: 4,375 Equip: 48,000 Acc Dep: 18000 Acc Payable: 0 Wages Payable 0 Int Payable 0 Unearned Rev 8000 Div Pay: 0 Note payable: 0 common stock: 50000 Ret Earn 48125 Srv Rev 0 Supplies Exp 0 Mower repari: 0 wages exp 0 Truck Rental exp : 0 Dep exp: 0 Int exp 0

July 2019 Transactions Date Description of the Transaction > July 1 Borrow $35,000.00 from 1st Bank by signing a 24 month note. (As an example of how to journalize and post a transaction--this transaction has already been entered into the General Journal and posted to the General Ledger July 1 Receive $80,050.00 cash from new investors, and issue $80,050.00 of Common Stock to them. July 1 Purchase $45,900.00 of new mowing equipment, paying cash to the mower dealer July 1 Pay $500.00 cash for the July truck rental July 3 Invoice a new customer $2,695.00 for a completed mowing job -- customer will pay in 10 days. July 5 The Board of Directors declares a cash dividend. The total amount of the dividend is $22,500.00 The Date of Record is set as July 15. The Date of Payment is set as July 31. July 7 Pay the employees $6,000.00 for work performed during the 1st week of July July 10 Complete a mowing job for a new customer -- customer pays $6,500.00 cash for the job. July 12 Collect $3,500.00 cash from the golf course for special rush mowing job completed on May 31 July 14 Pay the employees $7,500.00 for work performed during the 2nd week of July July 15 Purchase $1,180.00 of supplies from the mower dealer. The supplies are consumed immediately Lenny's will pay the mower dealer for the supplies in about 2 weeks. July 15 Collect $2,695.00 on account. The cash that is received is from the new customer for the job that was completed on July 3. July 17 One of the original mowers purchased in January of 2018 broke down and is repaired by the mower dealer. The cost of the Mower Repair job is $645.00. Lenny's will pay the mower dealer in 30 days July 19 Purchase for cash $21,000.00 of supplies. These supplies will be consumed over the next 12 months July 20 Collect $30,000.00 from the property management company for work performed in June. July 21 Pay the employees $6,850.00 for work performed during the 3rd week of July July 23 Receive a $22,500.00 advance payment from the university. The advance payment is for 6 months of work which will be performed from August 1, 2019 to January 31, 2020 July 25 Complete a special mowing job for the golf course. The total price for the mowing job is $3,300.00 The golf course pays $500,00 cash on this date and will pay the remainder on August 25 July 27 Complete a mowing job for a new customer-customer pays $3,800.00 cash for the job July 27 Pay $1,180.00 cash to the mower dealer for the supplies purchased on account on July 15. July 28 Pay the employees 55,300.00 for work performed during the 4th week of July. July 31 Invoice the property management company $19,300.00 for July mowing work. The property management company will pay the invoice on the 20th of next month. July 31 Pay the cash dividend which was declared on July 5 Additional Information Equipment: The $48,000.00 beginning balance in the Equipment account relates to the mowing equipment which was purchased on January 2, 2018. For information related to this mowing equipment see Page 70 in the Solid Footing book. This equipment continues to be used and should be depreciated for the month of July The following information relates to the new equipment which was purchased on July 1, 2019 - The new equipment was placed into service on July 1, 2019 and should be depreciated for the month of July. -- The estimated useful life of the new equipment is 5 years. -- At the end of 5 years, the new equipment will have no future value and will be scrapped. -- The new equipment will be depreciated using the straight-line method Supplies: At the end of July there are 521,400.00 supplies on-hand. Mowing Service at the University: The monthly mowing service was provided to the university per the contract signed on Apni 1, 2019 For information on the contract with the university and the related advance payment, see Pages 95 and 98 in the Solid Footing book Wages Due the Employees: The last wage payment was made to the employees on July 28, 2019. The employees worked on July 29, 30, and 31. For these three days of work the employees earned 52.575.00 of wages. These three days of wages will be paid to the workers during the first week of August Bank Loan: The interest on the loan from 1st Bank will be paid every three months. The first interest payment to the bank will be made on September 30, 2019. Lanny's calls the bank on July 31 and the bank indicates that the interest on the loan for July is 5785.00 Directions Trans Chart Acets Journal GL Assets GL Liab-Equity dy e - PROPERTY, PLANT, & EQUIPMENT and THE DEPRECIATION ADJUSTING ENTRY The Accumulated Depreciation account is one of the accounts that will require an adjusting entry at the end of each accounting period. Before discussing the Accumulated Depreciation account, let's first discuss the long-term asset accounts that are related to Accumulated Depreciation Companies buy many types of long term assets. Long-term assets are assets a company will keep and use for more than one year. Most long-term assets purchased by a company are of the Property, Plant, & Equipment type. Lenny's lawn mowing equipment is an example of a Property Plant, & Equipment asset. Property, Plant, & Equipment assets are also called Fixed Assets Observe on the screen that Lenny's has a $48,000 balance in its Equipment account. This equipment was purchased over a year ago, on January 2, 2018, when Lenny's started in business At that time, Lenny's estimated: The lawn mowing equipment would last for four years (48 months) At the end of the four years, the equipment would have no future value and would be scrapped Therefore, for each month that Lenny's uses the lawn mowing equipment, 1/48 of the equipment's service life is used up. If the balance in the Equipment account is reduced by 1/48h of its original cost each month; then by the end of four years, the balance in the Equipment account will be zero. The calculation of the monthly reduction amount is Equipment Cost Monthly reduction in Equipment account Months of Useful Life $48,000 $1,000 per month 48 months The $1,000 is called the monthly depreciation. Depreciation is the process of allocating the cost of Property. Plant, & Equipment to the accounting periods in which these assets are used. There are many different ways to calculate the amount of depreciation. The above method is called the straight-line depreciation method because the amount of depreciation is the same each accounting penod. Only the straight-line depreciation method will be used in this book. RECEIVE ADVANCE PAYMENT TRANSACTION On April 1, Lenny's signs a contract to perform lawn services for a new customer. The new customer is a university in the Tampa area. The contract Lenny's signs with the university stipulates that Lenny's will be paid an $8,000 monthly fee for the lawn services. As part of the contract agreement, the university agrees to pay the first four months of services in advance; thus Lenny's receives $32,000 cash from the university on April 1. Click Advance Pmt. The $32,000 debit to the Cash account records the increase in cash that results from the advance payment. The credit portion of this entry is to the Unearned Revenue liability account. The Unearned Revenue account records the university's $32,000 claim to Lenny's assets. A liability account is increased because Lenny's has a future obligation to perform $32,000 of services for the university, and as of April 1, Lenny's has not earned any of the $32,000 The Uneamed Revenue liability account is just like any other liability account. It records the claim to assets of someone in this case, the university) who is not an owner of the business. The one thing that does make the Uneamed Revenue account different from most other liability accounts is that the Unearned Revenue liability will be "paid-off" by Lenny's providing services to the universitynot by Lenny's paying cash to the university 98 SOLID FOOTING Chapter 8 - Adjusting Entries Continued -> APRIL'S UNEARNED REVENUE ADJUSTING ENTRY On April 1, when Lenny's signed the contract with the university, Lenny's was paid $32,000 in advance for the first four months of services. During the month of April, Lenny's performed the Lawn services for the university The timeline below shows the period of service covered by the 532,000 Lenny's received on April 1. You can see from the timeline that on April 1, Lenny's owed the university $32,000 of services. The onginal $32,000 entry into the Unearned Liability account reflected Lenny's $32,000 liability for future services to the university The timeline also shows the period of time and the dollar amount of services the university is still due as of the end of April. As of April 30, Lenny's owes the university three months of service Each month of service has a value of $8,000 thus Lenny's owes the university $24,000 of future services as of April 30. Because the balance in the Uneamed Revenue account tracks Lenny's liability for future services to the university, the April 30 balance in the Uneamed Revenue account should be $24,000 Unearned Revenue Timeline | April 1 $32,000 April 30 May 31 June 30 July 31 1 3 2 $24,000 "T" Account Analysis for Asset and Liability Accounts Account Name-> Unearned Revenue Debit Credit (1) What is the current balance? 32,000 (3) What adjustment is required to adjust from the current balance to the should be balance? 8.000 (2) What should be the balance? 24,000