John Smith and Jane Doe are friends from high school and have decided to go into the lawn mowing business. They decide to name their business Goodbye Grass Corporation. To protect their private assets, they incorporate the business and issue shares of common stock. 1. May 1: Issued 1,000 shares (500 shares each) of Common Stock to John Smith and Jane Doe in exchange for $10,000 cash. May 3: Purchased $500 of gardening equipment for $500 cash. May 4: Purchased a John Deere lawn mower with a cost of $4,000 by signing a promissory note to pay XYZ Lawn Supply in full in 60 days. May 6: Bought 6 bags of fertilizer for use in maintaining yards by paying $600 cash. May 7: Placed an ad in the local paper paying cash of $40. The ad will run in next Sunday's paper. May 8: Performed $2,000 of mowing services for Baum Realty on account and sent them a bill. May 25: Billy Bob, hired on May 10, worked 30 hours in performing the services above. He will be paid by direct deposit on June 1. May 30: An inspection of remaining supplies reveals that the company has used up one-half of the fertilizer that was purchased in 4. above May 30: Received a partial payment of $1,000 from Baum Realty from 6. above. 2. 3. 4. 5. 6. 7. 8. 9. 10. The company paid John Smith and Jane Doe dividends of $500 each