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

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

2. Post the General Journal entries to the General Ledger.

1. make the Unadjusted Trial Balance in the Trial Balance tab

4. Journalize any adjusting entries in the General Journal and post in the General Ledger. Show your calcuations for the adjustments in the Adjustments tab.

5. make the Adjusted Trial Blance in the Trial Balances tab. Also include the Income Statement and Balance Sheet on the Trial Balance Worksheet.

6. make the Income Statement, Statement of Shareholders' Equity, and Balance Sheet for the period ending April 30, 2016 in the appropriate tabs. Ignore the effects of income tax.

7. make an appropriate data visualization of financial results (either income statement or balance sheet)

8. make and post the closing entries for the month ended April 30, 2016.

9. Note the following additional information:

1. The business began on April 1, 2016

2. The period under consideration is April 1, 2016 - April 30, 2016.

3. For the purposes of this assignment, ignore the effects of income tax, property tax, sales tax, and payroll tax.

4. Straight-line depreciation method is used.

5. On April 30, 2016, the company had $150 of Office Supplies and $850 of Lawn & Garden Supplies on hand.

6. The telephone bill for April 2016 for $260 was received May 2016.

7. The utility bill for April 2016for $185 was received May 2016.

8. For the purposes of this assignment, consider the note payable for the truck purchase to be a current liability.

Dorsey Landscape,Inc.

Accounting Transactions for the Period of April 1, 2016 - April 30, 2016

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 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 llandscaping service at a rate of $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.