Instructions Following is a list of transactions entered into during the first month of operations of Gardener Corporation, a new landscape service. April Transactions: April 1 Articles of incorporation are filed with the state, and 100,000 shares of common stock are issued for $100,000 in cash. 4 A six-month promissory note is signed at the bank. Interest at 9% per annum will be repaid in six months along with the principal amount of the loan of $50,000. 8 Land and a storage shed are acquired for a lump sum of $80,000. On the basis of an appraisal, 25% of the value is assigned to the land and the remainder to the building. 10 Mowing equipment is purchased from a supplier at a total cost of $25,000. A down payment of $10,000 is made, with the remainder due by the end of the month. 18 Customers are billed for services provided during the first half of the month. The total amount billed of $5,500 is due within ten days. The remaining balance due on the mowing equipment is paid to the supplier. 27 28 The total amount of $5,500 due from customers is received. 30 Customers are billed for services provided during the second half of the month. The total amount billed is $9,850. Salaries and wages of $4,650 for the month of April are paid. 30 Required: Prepare in journal form the entry to record each transaction. CHART OF ACCOUNTS Gardener Corporation General Ledger ASSETS REVENUE 111 Cash 411 Service Revenue 121 Accounts Receivable 141 Inventory EXPENSES 152 Prepaid Insurance 500 Cost of Goods Sold 154 Supplies 521 Salary and Wage Expense 161 Land 532 Utilities Expense 171 Buildings 533 Insurance Expense 174 Mowing Equipment 534 Rent Expense 179 Accumulated Depreciation 537 Supplies Expense 541 Depreciation Expense LIABILITIES 545 Bad Debt Expense 211 Accounts Payable 551 Advertising Expense 231 Salaries Payable 559 Miscellaneous Expenses 235 Notes Payable 810 Interest Expense 261 Income Taxes Payable 910 Income Tax Expense EQUITY 311 Capital Stock 331 Retained Earnings All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback. PAGE 1 Score: 159/326 IMPACT ON FINANCIAL STATEMENTS GENERAL JOURNAL BALANCE SHEET INCOME STATEMENT DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY REVENUE EXPENSES NET INCOME 1 + Apr. 1 Cash 100,000.00 2 100,000.00 + 3 4 Apr.4 Cash 50,000.00 1 5 Notes Payable 50,000.00 t 6 + 7 Apr. 8 Land 20,000.00 8 Buildings 60,000.00 1 9 Cash 80,000.00 1 10 + 25,000.00 Apr. 10 Equipment + 11 Cash 10,000.00 + 12 Accounts Payable 15,000.00 13 Apr. 18 Accounts Re 14 15 16 17 18 19 20 Points: 36.58 / 75 Feedback Check My Work In a journal entry, debits are listed first. Credits are indented, listed after debits. Amounts are listed in debit or credit columns with corresponding account. All transactions involve an exchange
