Dorsey Landscape, Inc. Case Study

This case study must be completed in Excel or other spreadsheet program using the formats provided in this workbook.

Objectives:

1.Practice the steps involved in the Accounting Cycle

2.Practice electronic spreadsheet skills

a. Formulas

b. Linking worksheets

3. Practice using visulalization to share results

Instructions

• Using the Chart of Accounts provided, record the transactions in the General Journal. Do not add accounts.

• . make the Unadjusted Trial Balance in the Trial Balance tab
• Journalize any adjusting entries in the General Journal and post in the General Ledger. Show your calcuations for the adjustments in the Adjustments tab.
• make the Adjusted Trial Blance in the Trial Balances tab. Also include the Income Statement and Balance Sheet on the Trial Balance Worksheet.
• . make the Income Statement, Statement of Shareholders' Equity, and Balance Sheet for the period endingApril 30, 2016 in the appropriate tabs. Ignore the effects of income tax.
• make an appropriate data visualization of financial results (either income statement or balance sheet)
• make and post the closing entries for the month ended April 30, 2016.
• Note the following additional information:
• The business began on April 1, 2016
• The period under consideration is April 1, 2016 - April 30, 2016.
• . For the purposes of this assignment, ignore the effects of income tax, property tax, sales tax, and payroll tax.
• Straight-line depreciation method is used.
• On April 30, 2016, the company had $150 of Office Supplies and $850 of Lawn & Garden Supplies on hand.
• The telephone bill for April 2016 for $260 was received May 2016.
• The utility bill for April 2016for $185 was received May 2016.
• For the purposes of this assignment, consider the note payable for the truck purchase to be a current liability.

Transactions:

Date 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 $30,000 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 lifeand 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 llandscaping service at a rateof $650 per month. Dorsey Landscape will bill the businesses at the end of each month.

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 for a total of $1,600.

April 10, 2016 Receipts of cash from landscaping services in the amount of $5,200 were deposited to bank.

April 14, 2016 Paid 1/2 of amount owed to Wintergreen Garden Center.

April 16, 2016 Paid $1,200 in wage expense for the period April 1 - April 15, 2015.

Aprl 19, 2016 Paid ABC Office Supply invoice for purchases on April 6, 2016.

April 20, 2016 Received $7,500 in cash and checks for landscaping services rendered.

April 24, 2016 Returned $500 worth of lawn and garden supplies to Wintergreen Garden Center and received credit on account.

April 25, 2016 Received $1,000 advance deposit from customer for landscaping work to be stared in May 2016.

April 28, 2016 Paid remaining balance owed to Wintergreen Garden Center.

April 30, 2016 Truck Payment # 1 - Total $690.88 (Principal = $565.88; Interest = $125.00)

April 30, 2016 Paid $1,400 in wages expense for the period April 16 - April 30, 2016.

April 30, 2016 Pay credit card in full with the following charges incurred in April 2016:Gasoline - $625; Equipment Maintenance - $375; Dues - $150; Uniforms - $425; Advertising $375; Postage $100

April 30, 2016 Sent invoices to Grace's Diner and Preston Hill B & B for monthly lawn service.

April 30, 2016 Paid dividends to shareholders in the amount of $500.