In this file on the Journal Tab date 7-31. Where it is talking about depreciation. How did they get the numbers "1,000", "1,460"?

Accounting Cycle Project - Solid Footing 6e Project is Activated Before you begin working, save your activated project by following the directions in the SAVING YOUR PROJECT box >> Instructions: You will be recording the July 2013 transactions for Lenny's Lawn Service, Inc. After recording the July transactions you will be preparing a Pre-Closing Trial Balance, Income Statement, Statement of Stockholders' Equity, Balance Sheet, and Post-Closing Trial Balance. As you work on your project, be sure to save your file often. You are given the following: _ July 2013 transactions and Additional Information -- Trans tab _ Chart of Accounts with Account Numbers and Account Names -- Chart Accts tab _ General Journal pages -- Journal tab _ Lenny's General Ledger -- GL Assets, GL Liab-Equity, GL Rev-Exp-Div tabs _ Forms for the July 31, 2013 Pre-Closing Trial Balance, Income Statement, Statement of Stockholders' Equity, Balance Sheet, and Post-Closing Trial Balance Trial Bal, IS & SEquity, BalSht, and Post Close TB tabs First Name: Huyen Last Name: Tran ID Code: 88048732 SAVING YOUR PROJECT -- Immediately after Activation Save your project in a file that uses your name as the file name. The file name should be in the form: LastNameFirstName-ACP.xls For example, Mary Smith would save her project with the file name SmithMary-ACP.xls Windows Excel 2013, Excel 2010, and Excel 2003, follow these directions: - Click File - Click Save As - For Excel 2013 only: Click on Current Folder (C: \\Solid Footing 6e\\) - In File name: enter LastNameFirstName-ACP.xls - Click Save Windows Excel 2007, follow these directions: - Click the Office Button in the upper left corner of your screen - Point to Save As - Click Excel 97-2003 Workbook - In File name: enter LastNameFirstName-ACP.xls - Click Save Any time you save your project, if Excel 2007 asks you: Do you want to increase the security of this document by converting to an Office Open XML format? Always click No Mac Excel 2011, follow these directions: To Complete Your Project do the following: _ Print the July Transactions (click the Trans tab and then click the Printer Icon). _ Print the Chart of Accounts (click the Chart Accts tab and then click the Printer Icon). - Click File - Click Save As - In Save As: enter LastNameFirstName-ACP.xls - Format should be Excel 97-2004 Workbook (xls) - Click Save - Always Click Continue to the message X "This workbook contains features that will not ...." _ Record the July transactions in the General Journal. Click the Journal tab and record your entries directly into the General Journal. Look at the July 1 Notes Payable transaction, which has already been entered, for an example of how to make your entries. Do not put the "X" in the Posted column at this time. Use the printed Chart of Accounts as a reference source for the Account Numbers and Account Names that are available in Lenny's accounting system. _ To make posting from the General Journal to the General Ledger easier, it is recommended that you print the General Journal -- click the Journal tab and then click the Printer Icon. Steps 1 and 2 in the Accounting Cycle Step 1 For each business transaction that occurs during the accounting period, determine the effect of the transaction on the General Ledger accounts. _ Post the entries from the printed General Journal to the General Ledger accounts. Click the GL Assets, GL Liab-Equity, and GL Rev-Exp-Div tabs to find the accounts to be posted. Record your postings directly into the General Ledger. As you post an amount to an account be sure to enter the General Journal Page # into the Journal Page # column. See the first posting to the Cash account for an example. After you post an amount to a General Ledger account, then hand write an "X" in the Posted column of the printed General Journal. This will help you keep track of which entries you have posted. _ Enter the "X"s, which you hand wrote on your General Journal pages, into the General Journal. Click the Journal tab and enter the "X"s in the Posted column. Step 2 Make an entry in the General Journal for each transaction and post the entry to the General Ledger accounts. Pg. 2 _ Determine the required adjusting entries as of July 31, 2013. The information needed for the adjusting entires is on the page titled "Additional Information". This is the second page that printed when you printed the Trans tab. Click the Journal tab and record your adjusting entries in the General Journal. Use the printed Chart of Accounts as a reference source for the Account Numbers and Account Names that are available in Lenny's accounting system. Put your adjusting entries on Page # 4 of the General Journal. _ Post the adjusting entries from the General Journal to the General Ledger accounts. Click the GL Assets, GL Liab-Equity, and GL Rev-Exp-Div tabs to find the accounts to be posted. As you post an amount to an account be sure to enter the General Journal Page # into the Journal Page # column. After you post an amount to a General Ledger account, click back on the Journal tab and enter an "X" in the Posted column of the General Journal. Step 3 in the Accounting Cycle At the end of the accounting period, before preparing the financial statements, determine if any of the General Ledger account balances need to be adjusted. Enter any required adjusting entries into the General Journal and post the adjusting entries to the General Ledger accounts. _ Print Lenny's General Ledger by: clicking the GL Assets tab and then clicking the Printer icon, clicking the GL Liab-Equity tab and then clicking the Printer icon, and clicking the GL Rev-Exp-Div tab and then clicking the Printer icon. _ Using the printed General Ledger, enter the ending account balances into the July 31, 2013 Pre-Closing Trial Balance. Click the Trial Bal tab and enter the amounts into the Pre-Closing Trial Balance. Print the July 31, 2013 Pre-Closing Trial Balance by clicking the Printer icon. Step 4 in the Accounting Cycle Prepare a Pre-Closing Trial Balance to determine that the accounts in the General Ledger are in balance. Step 5 in the Accounting Cycle _ Using the printed July 31, 2013 Pre-Closing Trial Balance, prepare the July 2013 Income Statement. Click the IS & SEquity tab and enter the amounts into the Income Statement. Prepare an Income Statement from the ending balances in the General Ledger revenue and expense accounts. Step 6 in the Accounting Cycle _ Using the printed General Ledger and the Net Income amount, prepare the July 2013 Statement of Stockholders' Equity. Click the IS & SEquity tab and enter the amounts into the Statement of Stockholders' Equity. Calculate the ending balance of the Retained Earnings account that is needed for the preparation of the Balance Sheet Step 7 in the Accounting Cycle _ Using the printed July 31, 2013 Pre-Closing Trial Balance and the Retained Earnings amount from the Statement of Stockholders' Equity, prepare the July 31, 2013 Balance Sheet. Click the BalSht tab and enter the amounts into the Balance Sheet. _ Prepare the closing entries. Click the Journal tab and enter the closing entries into the General Journal. Place your closing entries on Page # 5 of the General Journal. _ Post the closing entries from the General Journal to the General Ledger accounts. Click the GL Liab-Equity, and GL Rev-Exp-Div tabs to find the accounts to be posted. As you post an amount to an account be sure to enter the General Journal Page # into the Journal Page # column. After you post an amount to a General Ledger account, click back on the Journal tab and enter an "X" in the Posted column of the General Journal. Prepare the Balance Sheet from the ending balances in the General Ledger asset accounts, liability accounts, Common Stock account, and the calculated ending balance for the Retained Earnings account. Step 8 in the Accounting Cycle Prepare and enter the revenue, expense, and dividend closing entries into the General Journal, and post the closing entries to the General Ledger accounts. Step 9 in the Accounting Cycle _ Click the Post Close TB tab and prepare the July 31, 2013 Post-Closing Trial Balance. Your project is complete! Your instructor will provide you with directions on how to submit your project. Prepare a Post-Closing Trial Balance to determine that the accounts in the General Ledger are in balance and ready to start a new Accounting Cycle. Lenny's Lawn Service, Inc. - Transactions - Additional Information July 2013 Transactions Date July 1 Description of the Transaction Borrow $35,000.00 from 1st Bank by signing a 24 month note with a 4% annual interest rate. (As an example of how to journalize and post a transaction -- this transaction has already been entered into the General Journal and posted to the General Ledger.) July 1 Receive $58,000.00 cash from new investors, and issue $58,000.00 of Common Stock to them. July 1 Purchase $87,600.00 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 $900.00 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 $11,000.00 The Date of Record is set as July 15. The Date of Payment is set as July 31. July 7 Pay the employees $6,000.00 for work performed during the 1st week of July. July 10 Complete a mowing job for a new customer -- customer pays $500.00 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 $4,800.00 for work performed during the 2nd week of July. July 15 Purchase $50.00 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 $900.00 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 2012 broke down and is repaired by the mower dealer. The cost of the Mower Repair job is $790.00. Lenny's will pay the mower dealer in 30 days. July 19 Purchase for cash $17,000.00 of supplies. These supplies will be consumed over the next 12 months. July 20 Collect $30,000.00 from the property management company for work performed in June. July 21 Pay the employees $5,750.00 for work performed during the 3rd week of July. July 23 Receive a $42,000.00 advance payment from the university. The advance payment is for 6 months of work which will be performed from August 1, 2013 to January 31, 2014. July 25 Complete a special mowing job for the golf course. The total price for the mowing job is $8,300.00. 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 $225.00 cash for the job. July 27 Pay $50.00 cash to the mower dealer for the supplies purchased on account on July 15. July 28 Pay the employees $6,300.00 for work performed during the 4th week of July. July 31 Invoice the property management company $33,000.00 for July mowing work. The property management company will pay the invoice on the 20th 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, 2012. For information related to this mowing equipment see Page 70 in the Solid Footing book. 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, 2013: The new equipment was placed into service on July 1, 2013 and should be depreciated 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 method. Supplies: At the end of July there are $14,700.00 supplies on-hand. Mowing Service at the University: The monthly mowing service was provided to the university per the contract signed on April 1, 2013. For information on the contract with the university and the related advance payment, see Pages 95 and 98 in the Solid Footing book. Wages Due the Employees: Bank Loan: The last wage payment was made to the employees on July 28, 2013. The employees worked on July 29, 30, and 31. For these three days of work the employees earned $4,750.00 of wages. These three days of wages will be paid to the workers during the first week of August. The interest on the loan from 1st Bank will be paid every three months. The first interest payment to the bank will be made on September 30, 2013. Lenny's calls the bank on July 31 and the bank indicates that the interest on the loan for July is $155.00 Lenny's Lawn Service, Inc. - Chart of Accounts Account # 100 105 110 150 155 200 205 210 215 220 250 300 305 400 500 505 510 515 520 550 600 Account Name Assets: Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Liabilities: Accounts Payable Wages Payable Interest Payable Unearned Revenue Dividends Payable Note Payable Equity: Common Stock Retained Earnings Revenues: Service Revenue Expenses: Supplies Expense Mower Repair Expense Wages Expense Truck Rental Expense Depreciation Expense Interest Expense Dividends: Dividends Huyen Tran Lenny's Lawn Service, Inc. - General Journal Page # 1 2013 Month-Day Account Number 7-1 100 250 Account Name Cash Notes Payable Posted X Debit Credit 35,000.00 35,000.00 X Borrowed on Note Payable 7-1 100 300 7-1 Cash Common Stock x 150 Equipment x Cash 515 Truck Rental Expense Cash x 105 Account Receivables x Service Revenue 600 510 100 7-10 100 400 7-12 100 105 7-14 510 Dividends Dividends Payable Wages Expenses Cash Cash Service Revenue Cash Account Receivables Wages Expenses x x x x x 500 Supplies x 100 Account Payable Cash x 505 Mower Repair Expenses x Accounts Payable 500.00 3,500.00 3,500.00 4,800.00 4,800.00 50.00 50.00 900.00 900.00 790.00 790.00 x 110 Supplies x Cash 17,000.00 x 100 510 100 215 7-25 6,000.00 500.00 x 100 7-23 6,000.00 x Account Receivables 105 7-21 11,000.00 x 100 7-20 11,000.00 x 200 7-19 900.00 x 200 7-17 900.00 x Cash 200 7-15 500.00 x 100 7-15 500.00 x 220 7-7 87,600.00 x 400 7-5 87,600.00 x 100 7-3 58,000.00 x 100 7-1 58,000.00 Cash Account Receivables Wages Expenses Cash Cash Unearned Revenue x 17,000.00 30,000.00 30,000.00 x x 5,750.00 5,750.00 x x 42,000.00 42,000.00 x 105 Cash x 100 Account Receivables x 1,000.00 7,300.00 Lenny's Lawn Service, Inc. - General Journal Page # 2 2013 Account Month-Day Number 400 7-27 100 400 7-27 200 100 7-28 510 100 7-31 Account Name Service Revenue Cash Service Revenue Account Payable Cash Wages Expenses Cash Posted x x x Service Revenue 220 Dividends Payable x 520 520 500 110 7-31 Cash Depreciation Expenses Accumulated Depreciation Depreciation Expenses Accumulated Depreciation Supplies Expenses Supplies x 6,300.00 33,000.00 33,000.00 11,000.00 11,000.00 1,000.00 1,000.00 x x 1,460.00 1,460.00 x x 6,675.00 6,675.00 x 510 Wages Expenses x Wages Payable 215 Unearned Revenue x Service Revenue 4,750.00 x 400 7-31 6,300.00 x 205 7-31 50.00 x 155 7-31 50.00 x Account Receivables 155 7-31 225.00 x 105 100 7-31 225.00 x x x 550 210 Interest Expense Interest Payable x x Credit 8,300.00 x 400 7-31 Debit 4,750.00 8,000.00 8,000.00 155.00 155.00 Lenny's Lawn Service, Inc. - General Journal Page # 3 2013 Account Month-Day Number 7-31 600 Account Name Retained Earnings Posted x 500 Supplies Expense Mower Repair Expense Wages Expense x 515 Truck Rental Expense x 520 Depreciation Expense x Interest Expense 6,725.00 790.00 27,600.00 500.00 2,460.00 155.00 x 510 x 550 Credit 38,230.00 x 505 Debit Close Expense Account 7-31 400 600 Service Revenue Retained Earnings x 50,925.00 50,925.00 x Close Service Revenue Account 7-31 305 600 Retained Earnings Dividends x x 11,000.00 11,000.00 Lenny's Lawn Service, Inc. - General Journal Page # 4 2013 Account Month-Day Number Account Name Posted Debit Credit Lenny's Lawn Service, Inc. - General Journal Page # 5 2013 Account Month-Day Number Account Name Posted Debit Credit Huyen Tran Lenny's Lawn Service, Inc. - General Ledger Account # 100 Cash 2013 Journal Month-Day Page # 7-1 Beginning Balance 7-1 1 7-1 1 7-1 1 7-7 1 7-10 1 7-12 1 7-14 1 7-15 1 7-19 1 7-20 1 7-21 1 7-23 1 7-25 1 7-27 1 7-27 1 7-28 1 7-31 2 Account # 105 87,600.00 500.00 6,000.00 500.00 3,500.00 4,800.00 900.00 17,000.00 30,000.00 5,750.00 42,000.00 1,000.00 225.00 50.00 6,300.00 11,000.00 Balance 38,250.00 73,250.00 131,250.00 43,650.00 43,150.00 37,150.00 37,650.00 41,150.00 36,350.00 37,250.00 20,250.00 50,250.00 44,500.00 86,500.00 87,500.00 87,725.00 87,675.00 81,375.00 70,375.00 Dr Dr Dr Dr Dr Dr Dr Dr Dr Dr Dr Dr Dr Dr Dr Dr Dr Dr Dr Accounts Receivable 2013 Journal Month-Day Page # 7-1 Credit 38,250.00 35,000.00 58,000.00 1 7-1 Debit Beginning Balance 7-3 1 7-12 1 7-25 1 7-31 2 Balance 3,500.00 900.00 30,000.00 1 7-20 Credit 33,500.00 34,400.00 30,900.00 30,000.00 0.00 7,300.00 40,300.00 33,500.00 900.00 1 7-15 Debit 7,300.00 33,000.00 Dr Dr Dr Dr Dr Dr Dr Huyen Tran Lenny's Lawn Service, Inc. - General Ledger Account # 110 Supplies 2013 Journal Month-Day Page # 7-1 Beginning Balance 7-19 1 7-31 Debit 4,375.00 17,000.00 2 Account # 150 2013 Journal Page # Beginning Balance 7-1 1 Account # 155 2013 Journal Page # 7-31 4,375.00 Dr 21,375.00 Dr 14,700.00 Dr Debit Credit 48,000.00 87,600.00 Balance 48,000.00 Dr 135,600.00 Dr Accumulated Depreciation Month-Day 7-1 6,675.00 Balance Equipment Month-Day 7-1 Credit Beginning Balance 2 Debit Credit Balance 18,000.00 2,460.00 18,000.00 Cr 20,460.00 Cr Huyen Tran Lenny's Lawn Service, Inc. - General Ledger Account # 200 Accounts Payable 2013 Journal Month-Day Page # 7-1 Debit 0.00 50.00 790.00 Beginning Balance 7-15 1 7-17 1 7-27 2 Account # 205 Journal Month-Day Page # 0.00 50.00 840.00 790.00 Cr Cr Cr Cr Balance 0.00 Cr 4,750.00 Cr Interest Payable 2013 Journal Month-Day Page # Debit 7-31 Credit 0.00 155.00 Beginning Balance 2 Account # 215 Credit 0.00 4,750.00 2 Account # 210 Balance 0.00 Cr 155.00 Cr Unearned Revenue 2013 Journal Month-Day Page # 7-1 Debit Beginning Balance 7-31 7-1 50.00 Balance Wages Payable 2013 7-1 Credit Debit 7-23 1 7-31 2 8,000.00 Balance 8,000.00 42,000.00 Beginning Balance Credit 8,000.00 Cr 50,000.00 Cr 42,000.00 Cr Huyen Tran Lenny's Lawn Service, Inc. - General Ledger Account # 220 Dividends Payable 2013 Journal Month-Day Page # 7-1 Debit 7-5 7-31 2 Account # 250 2013 Journal Page # 7-1 1 2013 Journal Page # 7-1 0.00 Cr 35,000.00 Cr Credit Balance 50,000.00 58,000.00 1 50,000.00 Cr 108,000.00 Cr Retained Earnings 2013 Journal Month-Day Page # 7-1 Debit Beginning Balance Account # 305 Balance Common Stock Month-Day 7-1 Debit Beginning Balance Account # 300 Credit 11,000.00 Note Payable Month-Day 7-1 0.00 Cr 11,000.00 Cr 0.00 Cr 0.00 35,000.00 1 Balance 0.00 11,000.00 Beginning Balance Credit Debit 7-31 3 7-31 3 7-31 3 38,230.00 11,000.00 Balance 48,125.00 50,925.00 Beginning Balance Credit 48,125.00 99,050.00 60,820.00 49,820.00 Cr Cr Cr Cr Huyen Tran Lenny's Lawn Service, Inc. - General Ledger Account # 400 Service Revenue 2013 Journal Month-Day Page # 7-1 Debit 7-3 1 7-10 1 7-25 1 7-27 2 7-31 2 7-31 2 7-31 3 Account # 500 2013 Journal Page # 50,925.00 Debit 7-15 1 7-31 2 7-31 3 Cr Cr Cr Cr Cr Cr Cr Cr 6,725.00 Balance 0.00 50.00 6,725.00 0.00 Dr Dr Dr Dr Mower Repair Expense 2013 Journal Month-Day Page # 7-1 Credit 0.00 50.00 6,675.00 Beginning Balance Account # 505 0.00 900.00 1,400.00 9,700.00 9,925.00 42,925.00 50,925.00 0.00 Supplies Expense Month-Day 7-1 Balance 0.00 900.00 500.00 8,300.00 225.00 33,000.00 8,000.00 Beginning Balance Credit Beginning Balance 7-17 1 7-31 5 Debit Credit 0.00 790.00 790.00 Balance 0.00 Dr 790.00 Dr 0.00 Dr Huyen Tran Lenny's Lawn Service, Inc. - General Ledger Account # 510 Wages Expense 2013 Journal Month-Day Page # 7-1 Beginning Balance 7-7 1 7-14 7-21 1 7-28 2 7-31 2 7-31 Debit 27,600.00 2013 Journal Page # Beginning Balance 7-1 1 7-31 Debit Balance Dr Dr Dr Dr Dr Dr Dr 500.00 0.00 Dr 500.00 Dr 0.00 Dr Depreciation Expense 2013 Journal Month-Day Page # 7-1 Credit 0.00 500.00 3 Account # 520 0.00 6,000.00 10,800.00 16,550.00 22,850.00 27,600.00 0.00 Truck Rental Expense Month-Day 7-1 Balance 0.00 6,000.00 4,800.00 5,750.00 6,300.00 4,750.00 3 Account # 515 Credit Beginning Balance 7-31 2 7-31 Credit 0.00 2,400.00 2 7-31 Debit Balance 0.00 Dr 2,400.00 Dr 0.00 Dr 3 Account # 550 Interest Expense 2013 Journal Month-Day Page # 7-1 2,400.00 Beginning Balance 7-31 2 7-31 3 Debit Credit 0.00 155.00 155.00 Balance 0.00 Dr 155.00 Dr 0.00 Dr Huyen Tran Lenny's Lawn Service, Inc. - General Ledger Account # 600 Dividends 2013 Journal Month-Day Page # 7-1 Beginning Balance 7-5 1 7-31 3 Debit Credit Balance 11,000.00 0.00 Dr 11,000.00 Dr 0.00 Dr 0.00 11,000.00 74a13 Huyen Tran 88048732 Lenny's - July 31, 2013 Pre-Closing Trial Balance Account # Account Name Debit Credit 70,375.00 40,300.00 14,700.00 135,600.00 100 Cash 105 Accounts Receivable 110 Supplies 150 Equipment 155 Accumulated Depreciation 200 Accounts Payable 205 Wages Payable 210 Interest Payable 215 Unearned Revenue 220 Dividends Payable 250 Note Payable 300 Common Stock 305 Retained Earnings 400 Service Revenue 500 Supplies Expense 505 Mower Repair Expense 510 Wages Expense 515 Truck Rental Expense 520 Depreciation Expense 550 Interest Expense 600 Dividends Do NOT copy cells from the General Ledger. 20,460.00 790.00 4,750.00 155.00 42,000.00 0.00 35,000.00 108,000.00 48,125.00 50,925.00 6,725.00 790.00 27,600.00 500.00 2,460.00 155.00 11,000.00 Totals 310,205.00 CAUTION Enter amounts into the Pre-Closing Trial Balance by typing in the amounts. 310,205.00 Huyen Tran 88048732 Lenny's Lawn Service, Inc. Income Statement CAUTION Enter amounts into the Financial Statements by typing in the amounts. Do NOT copy cells from the General Ledger or Pre-Closing Trial Balance. for the Month Ended July 31, 2013 Service Revenue $50,925.00 Operating Expenses: Supplies Mower Repair Wages Truck Rental Depreciation (6,725.00) (790.00) (27,600.00) (500.00) (2,460.00) Total Operating Expenses Income from Operations Interest Expense Note the new line item on Lenny's Income Statement Income from Operations. This is Lenny's income from the normal operations of the lawn mowing business. Interest Expense, which is not a cost of operating the business but rather a cost of financing the business, is shown below Income from Operations. Interest Expense is subtracted from Income from Operations to arrive at Net Income. (38,075.00) 12,850.00 (155.00) Net Income $12,695.00 Lenny's Lawn Service, Inc. Statement of Stockholders' Equity for the Month Ended July 31, 2013 Beginning Balance July 1, 2013 Issue Common Stock Net Income Dividends Ending Balance July 31, 2013 Common Stock $50,000.00 58,000.00 Retained Earnings $48,125.00 12,695.00 (11,000.00) $108,000.00 Total $98,125.00 58,000.00 12,695.00 (11,000.00) $49,820.00 $157,820.00 This is the first time you have prepared a formal Statement of Stockholders' Equity for Lenny's. This statement simply shows what caused the changes in the Stockholders' Equity amounts from last month to this month. Note that the Retained Earnings column on the statement looks the same as the calculation you have been doing each month to determine the Retained Earnings balance needed for the Balance Sheet. Thus, if you prepare a formal Statement of Stockholders' Equity, you have already calculated the Retained Earnings balance needed for the Balance Sheet, and you have completed Step 6 in the Accounting Cycle. Huyen Tran Lenny's Lawn Service, Inc. Balance Sheet 88048732 CAUTION Enter amounts into the Balance Sheet by typing in the amounts. Do NOT copy cells from the General Ledger or Pre-Closing Trial Balance. as of July 31, 2013 Assets Current Assets: Cash Accounts Receivable Supplies Total Current Assets Property & Equipment: Equipment Accumulated Depreciation $70,375.00 40,300.00 14,700.00 125,375.00 $135,600.00 (20,460.00) Property & Equipment, net 115,140.00 Total Assets $240,515.00 Liabilities & Stockholders' Equity Current Liabilities: Accounts Payable Wages Payable Interest Payable Unearned Revenue Total Current Liabilities Long-Term Liabilities: Note Payable Total Liabilities Stockholders' Equity: Common Stock Retained Earnings $790.00 4,750.00 155.00 42,000.00 47,695.00 35,000.00 82,695.00 108,000.00 49,820.00 Total Stockholders' Equity 157,820.00 Total Liabilities & Stockholders' Equity $240,515.00 Note the following three new sub-totals appearing on Lenny's Balance Sheet: Total Current Assets is a total of those assets, which will turn-into cash during the next 12 months or be consumed during the next 12 months. The comparison of Total Current Assets to Total Current Liabilities gives some indication of Lenny's liquidity -that is, its ability to pay its bills in the short-term. Property & Equipment, net is the amount of Fixed Asset cost, which remains to be depreciated in future accounting periods. Total Current Liabilities is a total of those liabilities that will require payment in the next 12 months. In the case of Unearned Revenue, this current liability will be "paid-off" by Lenny's delivering mowing services to the university. Huyen Tran 88048732 Lenny's - July 31, 2013 Post-Closing Trial Balance Account # Account Name Debit Credit 70,375.00 40,300.00 14,700.00 135,600.00 100 Cash 105 Accounts Receivable 110 Supplies 150 Equipment 155 Accumulated Depreciation 200 Accounts Payable 205 Wages Payable 210 Interest Payable 215 Unearned Revenue 220 Dividends Payable 250 Note Payable 300 Common Stock 305 Retained Earnings 400 Service Revenue 500 Supplies Expense 505 Mower Repair Expense 510 Wages Expense 515 Truck Rental Expense 520 Depreciation Expense 550 Interest Expense 600 Dividends Do NOT copy cells from the General Ledger. 20,460.00 790.00 4,750.00 155.00 42,000.00 0.00 35,000.00 108,000.00 49,820.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Totals 260,975.00 CAUTION Enter amounts into the Post-Closing Trial Balance by typing in the amounts. 260,975.00 Student's Name: Project Id Code: Class Time: Instructor: Grading Item Pre-Closing Trial Balance Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Wages Payable Interest Payable Unearned Revenue Dividends Payable Note Payable Common Stock Retained Earnings Service Revenue Supplies Expense Mower Repair Expense Wages Expense Truck Rental Expense Depreciation Expense Interest Expense Dividends Huyen Tran 88048732 0 0 Lenny's Lawn Service, Inc. Student's Answer Grading Item Balance Sheet Total Assets Retained Earnings Income Statement Net Income Stockholders' Equity Common Stock 7-31 Bal. Retained Earnings 7-31 Bal. Post-Closing Trial Balance Total Debit Column Your answers will NOT appear on this Grade Page Student's