Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dorsey Landscape, Inc. Accounting Transactions for the Period of April 1, 2016-April 30, 2016 ate Description April 1, 2016 The stockholders purchase 7,500 shares of

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
Dorsey Landscape, Inc. Accounting Transactions for the Period of April 1, 2016-April 30, 2016 ate Description 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 S30,000 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 landscaping service at a rate 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 of $650 per month. Dorsey Landscape will bill the businesses at the end of each month. for a total of $1,600 April 10, 2016 April 14, 2016 April 16, 2016 Aprl 19, 2016 April 20, 2016 April 24, 2016 Receipts of cash from landscaping services in the amount of $5,200 were deposited to bank. Paid 1/2 of amount owed to Wintergreen Garden Center Paid $1,200 in wage expense for the period April 1-April 15, 2015. Paid ABC Office Supply invoice for purchases on April 6, 2016. Received S7,500 in cash and checks for landscaping services rendered Returned $500 worth of lawn and garden supplies to Wintergreen Garden Center and received credit on account

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngrens Accounting The Managerial Chapters

Authors: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura

11th Global Edition

1292105879, 978-1292105871

More Books

Students also viewed these Accounting questions

Question

2. What role should job descriptions play in training at Apex?

Answered: 1 week ago