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i need a pre closing balance ASAP, please!! July 2023 Transactions Date Description of the Transaction July 1 Borrow $35,000.00 from 1 st Bank by
i need a pre closing balance ASAP, please!!
July 2023 Transactions Date Description of the Transaction July 1 Borrow $35,000.00 from 1 st Bank by signing a 24 month note. (As an example of how to joumalize and post a tranaction - this transaction has already been entered into the General Joumal and posted to the General Ledger.) July 1 Recelve $75,500.00 cash from new hvestors, and issue $75,500.00 of Common Stock to them. July 1 Purchase $28,200.00 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 $5,825.00 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 $36,000,00 The Date of Record is set as July 15. The Date of Payment is set as July 31. July 7 Pay the employees $5,300.00 for work pertormed during the 1 st week of July. July 10 Complete a mowing job for a new customer - customer pays $6,910.00 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 $6,100.00 for work performed during the 2nd week of July. July 15 Purchase $2,770.00 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 $5,825.00 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 2022 broke down and is repaired by the mower dealer. The cost of the Mower Repair job is $995.00. Lenny's will pay the mower dealer in 30 days. July 19 Purchase for cash $27,250.00 of supplies. These supples wal be consumed over the next 12 months. July 20 Colloct $30.000.00 from the property management company for work performed in June. July 21 Pay the employees $6,950.00 for work pertormed during the 3rd week of July. July 23 Roceive $18,300.00 advance payment from the universky. The advance payment is for 6 months of work which wa be porformed from Aupust 1, 2023 to January 31, 2024 July 25 Complete a special mowing job for the got course. The total price for the mowing job is $4,100,00. The golf course pays $1,000,00 cash on this date and will pay the remainder on August 25 . July 27 Complete a mowing job for a new customer - customer pays $5,475.00 cash for the job. July 27 Pay $2,770.00 cash to the mower dealer for the supplies purchased on account on July 15. July 28 Pay the employees $7,150.00 for work performed during the 4 th week of July. July 31 Invoice the property management company $21,500.00 for July mowing work. The property management company will pay the invoice on the 20 th 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; 2022. For information related to this mowing equipment see Page 70 in the Solid Footing file CHAPTER 07 a - Intro to Adjusting Entries.pdf. 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, 2023: The new equipment was placed into service on July 1,2023 and should be depreclated 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 mothod. Supplies: As the end of July there are $25,150.00 supplies on-hand. Mowing Service at the University: The monthly mowing service was provided to the university per the contract signed on April 1, 2023. For information on the contract with the university and the related advance payment, see Pages 95 and 98 in the Solid Footing fie CHAPTER 08 a - Adjusting Entries Continued.pdf. Wages Due the Employees: The last wage payment was made to the employees on July 28, 2023. The employees worked on July 29,30 , and 31 . For these three days of work the employees earned $1,950.00 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 ban from 1st Bank wa be paid every three months. The first interest payment to the bank will be made on Soptember 30, 2023. Lenny's calls the bank on July 31 and the bank indicates that the interest on the loan for July is $755.00. In this chapter, you will continue to use the Excel workbook that you used in Chapter 7 entitled Chapter 07b - LENNY'S LAWN SERVICE (used in Chp 7 to 10). If this workbook is not open on your computer, do the following: Open the workbook Chapter 07 b-LENNY'S LAWN SERVICE (used in Chp 7 to 10) Enable Macros April tab You should see Screen 8A in the upper left corner of the screen. 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. 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 iiability 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 Unearned 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 Unearned 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 university - not by Lenny's paying cash to the university. 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 $32,000 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 original $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 Unearned Revenue account tracks Lenny's liability for future services to the university, the April 30 balance in the Unearned Revenue account should be $24,000. " T " Account Analysis for Asset and Liability Accounts Account Name Unearned Revenue (liabilitv account Step by Step Solution
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