Question
John Carson has decided to start a sole proprietorship called John's Lawn Care Services. He then starts the process of getting the business running. During
John Carson has decided to start a sole proprietorship called John's Lawn Care Services. He then starts the process of getting the business running. During the month of April 2020, the following activities take place:
Apr.3 | John invests $1,000 of his own money into the business. | |||||||
Apr.4 | John goes to the bank to fill out a loan application for $2,000. | |||||||
Apr.5 | John buys a lawn mower worth $500 using company funds. | |||||||
Apr. 5 | John buys $50 worth of supplies for the business, he pays cash. All of the supplies will be used up this month. | |||||||
Apr.6 | John receives an invoice for advertising services that ran in the local newspaper for $420. The invoice is due May 10th. | |||||||
Apr.7 | John has his first client! John mowed the Robinson family's commercial property for $100. Mr. Robinson has 30 days to pay the invoice. | |||||||
Apr.10 | The bank loan has been approved, and John signs the 3 year note payable for $2,000. The cash is deposited in the bank account. | |||||||
Apr.15 | John has been busy - he has done a number of private residences over the past week and they have paid him cash, $600. | |||||||
Apr.29 | Mr. Robinson referred a new commercial client to John, who wants to reserve his services for May to September. He provides a $500 deposit. | |||||||
Apr.30 | John withdraws $750 from the company for his personal use. |
Record the above events as applicable in General Journal format using the spaces below. |
Account Names | DEBIT | CREDIT |
T-Accounts: |
post the journal entries that you preapred in the first step
Trial Balance:
Prepare the company's trial balance at April 30
Income Statement:
Prepare the company's income statement for the month
Statement of Owners' Equity:
Prepare the company's equity statement for the month
Balance Sheet:
Prepare the company's Balance Sheet for the end of the month
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