Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I have to create a general journal, general ledger, and a trial balance. Ace Lawn Care Module 1Mini Practice Problem Jim Graham started his career
I have to create a general journal, general ledger, and a trial balance.
Ace Lawn Care Module 1Mini Practice Problem Jim Graham started his career mowing lawns for neighbors while he was in junior high school. Jim worked summers for the local golf course while he was in high school and now that he has graduated, he is starting his own lawn care business. You are taking an accounting class at the local community college and have agreed to help Jim set up and maintain the accounting records for his new business. He has set up a checking account in the business name, Ace Lawn Care, at the local bank. After some discussion with you, Jim has decided to set the business up as a sole proprietorship. You and Jim established a chart of accounts to be used in recording the business transactions. In May 2014, the following activities occur at Ace Lawn Care. May1 Jim withdraws $20,000 from his savings account and deposits it in the business' bank account. May 2 Jim purchases a used truck for $7,000 to use for the lawn care business, he writes a check for $3,500 and signs a 1 year, 6% note for the balance. May 5 Jim purchases a lawn mower for $300 and an aerator for S500 and writes a check for the total amount. May 6 Jim writes a S600 check for a six month insurance policy that expires October 31, 2014 May 7 Jim establishes a $1,000 line of credit account with Jones Fuel, a local gas station. Jim writes a check for S50 for a weekly advertisement in the local newspaper. The advertisement will run every Friday through the end of May, 2014. May 8 May 16 At the end of the first week, Jim has earned S600 for lawn care services. Of the S600, S500 was paid in cash and S100 was on credit. May 23 At the end of the second week, Jim has earned $1,100 for lawn care services. Of the $1,100, S700 was paid in cash and $400 was on credit. Jim writes a check for $75 to have the mower blade May 26 sharpened. May 30 At the end of the third week, Jim has carned $1,000 for lawn care services. Of the $1,000, $800 was paid in cash and $200 was on credit. May 3 Jim receives payments, on account, in the amount of S500 May 3 Jim receives his monthly invoice and writes a check for $400 to Jones Fuel Jim writes a check to himself for $1,500 for personal May 31 expenses Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started