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Jack Roberts formed a lawn service business, Roberts Lawn Service, as a summer job from May 1 to August 3 1 ( 4 months )
Jack Roberts formed a lawn service business, Roberts Lawn Service, as a summer job from May to August months Jack rented lawn equipment, purchased supplies, and hired high school students to mow and trim his customers lawns. At the end of each month, Jack mailed bills to his customers. On August he was ready to dissolve the business and return to university for the fall semester. Because he had been so busy, he had kept few records other than his chequebook and a list of amounts owed to him by customers.
Below are transactions happening within months:
To start the business on May he deposited $ in a new bank account in the name of the proprietorship. The $ consisted of a $ loan from his father and $ of his own money, so Jack invested $ of capital in the business.
At August Jacks chequebook shows a balance of $ and his customers still owe him $ During the summer, he collected $ from customers.
His chequebook lists payments for supplies totalling $ and he still has gasoline, weedeater cord, and other supplies that cost a total of $
He paid his employees $ and he still owes them $ for the final week of the summer.
Jack rented some equipment from Ludwig Tool Ltd On May the business signed a sixmonth lease on mowers and paid $ for the full lease period. Ludwig will refund the unused portion of the prepayment if the equipment is in good shape. In order to get the refund, Jack has kept the mowers in excellent condition. In fact, he had to pay $ to repair a mower that ran over a hidden tree stump.
To transport employees and equipment to jobs, Jack used a trailer that the business bought for $ He figures that the summers work used up onethird of the trailers service potential.
The business chequebook lists an expenditure of $ for cash withdrawals by Jack during the summer. Jack paid his father back during August.
Requirements:
Prepare adjusted trial balance of Roberts Lawn Service base on each transaction happened by identifying accounts related for each transaction listed above in months from May to Aug with the format as below: marks
Account Debit Credit
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