July 2021 Transactions Date Description of the Transaction July 1 Borrow $35,000.00 from 1st Bank by signing a 24 month note. (As an example of how to joumalize and post a transaction -- this transaction has already been entered into the General Journal and posted to the General Ledger.) July 1 Receive 562,600.00 cash from new investors, and issue $62.600.00 of Common Stock to them. July 1 Purchase $42,300.00 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 S4,775.00 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 $25,000.00 The Date of Record is set as July 15. The Date of Payment is set as July 31. July 7 Pay the employees $5,800.00 for work performed during the 1st week of July. July 10 Complete a mowing job for a new customer -- customer pays $4,200.00 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 $7.000.00 for work performed during the 2nd week of July. July 15 Purchase $1,020.00 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 $4.775.00 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 2020 broke down and is repaired by the mower dealer. The cost of the Mower Repair job is $440.00. Lenny's will pay the mower dealer in 30 days. July 19 Purchase for cash $22,750.00 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 $7,100.00 for work performed during the 3rd week of July. July 23 Receive a $20,000.00 advance payment from the university. The advance payment is for 8 months of work which will be performed from August 1, 2021 to January 31, 2022. July 25 Complete a special mowing job for the golf course. The total price for the mowing job is $5,400.00. The golf course pays $500.00 cash on this date and will pay the remainder on August 25. July 27 Complete a mowing job for a new custorner -- Customer pays $3,900.00 cash for the job. 990 July 27 Pay $1,020.00 cash to the mower dealer for the supplies purchased on account on July 15. July 28 Pay the employees 56,100.00 for work performed during the 4th week of July. July 31 Invoice the property management company $19,500.00 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, 2020. For information related to this mowing equipment see Page 70 in the Solid Footing text (PDF 07 - Intro to Adjusting Entries). 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, 2021: The new equipment was placed into service on July 1, 2021 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 $24,250.00 supplies on-hand. Mowing Service at the University: The monthly mowing service was provided to the university per the contract signed on April 1, 2021. For information on the contract with the university and the related advance payment, see Pages 95 and 98 in the Solid Footing text (PDF 08 - Adjusting Entries Continued). Wages Due the Employees: The last wage payment was made to the employees on July 28, 2021. The employees worked on July 29, 30, and 31. For these three days of work the employees earned $3,250.00 of wages. These three days of wages will be paid to the workers during the first week of August. Bank Loan: 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, 2021. Lenny's calls the bank on July 31 and the bank indicates that the interest on the loan for July is $795.00. Lenny's Lawn Service, Inc. General Journal Page # 1 Account Name Posted Debit Credit 2021 Month-Day 7-1 Account Number 100 35,000.00 Cash Notes Payable Borrowed on Note Payable 250 35,000.00 7-1 62,600.00 100 300 Cash Common Stock X X 62,600.00 7-1 150 42,300.00 Equipment Cash x 100 42,300.00 7-1 515 X 500.00 Truck Rental Expenses Cash 100 500.00 7-3 4,775.00 105 400 Accounts Receivable Service Revenue X X 4,775.00 7-5 305 25,000.00 Retained Earnings Dividend Payable 220 25,000.00 7-7 Wages Expenses 5,800.00 510 100 Cash 5,800.00 7-10 100 4,200.00 Cash Service Revenue 400 4,200.00 7-12 100 X 3,500.00 Cash Accounts Receivable 105 X 3,500.00 7-14 510 X 7,000.00 Wages Expenses Cash 100 7,000.00 7-15 110 X 1,020.00 Supplies account Accounts Payable 200 1,020.00 7-15 100 Cash X 4,775.00 105 Accounts Receivable 4,775.00 Lenny's Lawn Service, Inc. - General Journal Page # 2 Account Number Account Name Posted Debit 2021 Month-Day 7-17 Credit 505 440.00 Mowar Repair Expense Accounts Payable 200 440.00 7-19 X 22,750.00 110 100 Supplies Account Cash 22 750 no 7-20 30,000.00 100 215 Cash Accounts Receivable 30,000.00 7-21 510 Wages Expense Cash 7,100.00 100 7,100.00 7-23 100 20,000.00 Cash Unearned Revenue 20,000.00 7-25 100 Cash 500.00 4,900.00 105 Accounts Receivable XXX 400 Service Revenue 5,400.00 7-27 3,900.00 100 400 Cash Service Revenue X 3,900.00 7-27 200 1,020.00 Accounts Payable Cash x x 100 1,020.00 7-28 510 6,100.00 Wages Expenses Cash XX 100 6,100.00 7-31 105 Accounts Receivable 19,500.00 400 Service Revenue 19,500.00 Lenny's Lawn Service, Inc. - General Journal Page # 3 Account Number Posted Debit 2021 Month-Day 7-31 Credit Account Name supplies expense supplies X 7-31 Unearned Revenue Service Revenue 8,000.00 8,000.00 7-31 3,250.00 Wages Expense Wages Payable X 3,250.00 7-31 X 795.00 Interest Expense Interest Payble 795.00 Lenny's - July 31, 2021 Pre-Closing Trial Balance Account # Credit Debit 85,155.00 24,400.00 CAUTION Enter amounts into the Pre-Closing Trial Balance by typing in the amounts. 100 105 Do NOT copy cells from the General Ledger 110 150 90,300.00 155 200 205 210 19,705.00 440.00 3,250.00 795.00 28,000.00 215 220 Account Name Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Wages Payable Interest Payable Uneamed 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 250 300 305 35,000.00 112,600.00 23,125.00 45,775.00 400 500 505 510 515 520 550 440.00 29,250.00 500.00 1,705.00 795.00 232.545.00 Totals 268,690.00 July 2021 Transactions Date Description of the Transaction July 1 Borrow $35,000.00 from 1st Bank by signing a 24 month note. (As an example of how to joumalize and post a transaction -- this transaction has already been entered into the General Journal and posted to the General Ledger.) July 1 Receive 562,600.00 cash from new investors, and issue $62.600.00 of Common Stock to them. July 1 Purchase $42,300.00 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 S4,775.00 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 $25,000.00 The Date of Record is set as July 15. The Date of Payment is set as July 31. July 7 Pay the employees $5,800.00 for work performed during the 1st week of July. July 10 Complete a mowing job for a new customer -- customer pays $4,200.00 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 $7.000.00 for work performed during the 2nd week of July. July 15 Purchase $1,020.00 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 $4.775.00 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 2020 broke down and is repaired by the mower dealer. The cost of the Mower Repair job is $440.00. Lenny's will pay the mower dealer in 30 days. July 19 Purchase for cash $22,750.00 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 $7,100.00 for work performed during the 3rd week of July. July 23 Receive a $20,000.00 advance payment from the university. The advance payment is for 8 months of work which will be performed from August 1, 2021 to January 31, 2022. July 25 Complete a special mowing job for the golf course. The total price for the mowing job is $5,400.00. The golf course pays $500.00 cash on this date and will pay the remainder on August 25. July 27 Complete a mowing job for a new custorner -- Customer pays $3,900.00 cash for the job. 990 July 27 Pay $1,020.00 cash to the mower dealer for the supplies purchased on account on July 15. July 28 Pay the employees 56,100.00 for work performed during the 4th week of July. July 31 Invoice the property management company $19,500.00 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, 2020. For information related to this mowing equipment see Page 70 in the Solid Footing text (PDF 07 - Intro to Adjusting Entries). 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, 2021: The new equipment was placed into service on July 1, 2021 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 $24,250.00 supplies on-hand. Mowing Service at the University: The monthly mowing service was provided to the university per the contract signed on April 1, 2021. For information on the contract with the university and the related advance payment, see Pages 95 and 98 in the Solid Footing text (PDF 08 - Adjusting Entries Continued). Wages Due the Employees: The last wage payment was made to the employees on July 28, 2021. The employees worked on July 29, 30, and 31. For these three days of work the employees earned $3,250.00 of wages. These three days of wages will be paid to the workers during the first week of August. Bank Loan: 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, 2021. Lenny's calls the bank on July 31 and the bank indicates that the interest on the loan for July is $795.00. Lenny's Lawn Service, Inc. General Journal Page # 1 Account Name Posted Debit Credit 2021 Month-Day 7-1 Account Number 100 35,000.00 Cash Notes Payable Borrowed on Note Payable 250 35,000.00 7-1 62,600.00 100 300 Cash Common Stock X X 62,600.00 7-1 150 42,300.00 Equipment Cash x 100 42,300.00 7-1 515 X 500.00 Truck Rental Expenses Cash 100 500.00 7-3 4,775.00 105 400 Accounts Receivable Service Revenue X X 4,775.00 7-5 305 25,000.00 Retained Earnings Dividend Payable 220 25,000.00 7-7 Wages Expenses 5,800.00 510 100 Cash 5,800.00 7-10 100 4,200.00 Cash Service Revenue 400 4,200.00 7-12 100 X 3,500.00 Cash Accounts Receivable 105 X 3,500.00 7-14 510 X 7,000.00 Wages Expenses Cash 100 7,000.00 7-15 110 X 1,020.00 Supplies account Accounts Payable 200 1,020.00 7-15 100 Cash X 4,775.00 105 Accounts Receivable 4,775.00 Lenny's Lawn Service, Inc. - General Journal Page # 2 Account Number Account Name Posted Debit 2021 Month-Day 7-17 Credit 505 440.00 Mowar Repair Expense Accounts Payable 200 440.00 7-19 X 22,750.00 110 100 Supplies Account Cash 22 750 no 7-20 30,000.00 100 215 Cash Accounts Receivable 30,000.00 7-21 510 Wages Expense Cash 7,100.00 100 7,100.00 7-23 100 20,000.00 Cash Unearned Revenue 20,000.00 7-25 100 Cash 500.00 4,900.00 105 Accounts Receivable XXX 400 Service Revenue 5,400.00 7-27 3,900.00 100 400 Cash Service Revenue X 3,900.00 7-27 200 1,020.00 Accounts Payable Cash x x 100 1,020.00 7-28 510 6,100.00 Wages Expenses Cash XX 100 6,100.00 7-31 105 Accounts Receivable 19,500.00 400 Service Revenue 19,500.00 Lenny's Lawn Service, Inc. - General Journal Page # 3 Account Number Posted Debit 2021 Month-Day 7-31 Credit Account Name supplies expense supplies X 7-31 Unearned Revenue Service Revenue 8,000.00 8,000.00 7-31 3,250.00 Wages Expense Wages Payable X 3,250.00 7-31 X 795.00 Interest Expense Interest Payble 795.00 Lenny's - July 31, 2021 Pre-Closing Trial Balance Account # Credit Debit 85,155.00 24,400.00 CAUTION Enter amounts into the Pre-Closing Trial Balance by typing in the amounts. 100 105 Do NOT copy cells from the General Ledger 110 150 90,300.00 155 200 205 210 19,705.00 440.00 3,250.00 795.00 28,000.00 215 220 Account Name Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Wages Payable Interest Payable Uneamed 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 250 300 305 35,000.00 112,600.00 23,125.00 45,775.00 400 500 505 510 515 520 550 440.00 29,250.00 500.00 1,705.00 795.00 232.545.00 Totals 268,690.00