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 journalize and post a transaction - this transaction has already been entered into the General Journal and posted to the General Ledger) July 1 Receive $65,700 00 cash from new investors, and issue $65,700.00 of Common Stock to them July 1 Purchase $43,800 00 of new mowing equipment, paying cash to the mower dealer July 1 Pay $500 00 cash for the July truck rental JD July 3 Invoice a new customer $4.725 00 for a completed mowing Job - customer will pay in 10 days. July 5 The Board of Directors declares a cash dividend The lotal 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 $7000.00 for work performed during the 2nd week of July July 15 Purchase $1,020.00 of supplies from the mower dealer. The supples are consumed immediately Lenny's will pay the mower dealer for the supplies in about 2 weeks 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 $4,725 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 orginal mowers purchased in January of 2020 broke down and is repaired by the mower dealer. The cost of the Mower Repair job is $420.00. 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 $21,500.00 advance payment from the university. The advance payment is for 6 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 jobis $5,200.00 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 customer -- customer pays $3,900.00 cash for the job 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 565,10000 for work performed during the 4th week of July July 31 Invoice the property management company $20,000.00 for July mowing work. The property management company will pay the invoice on the 20th of next month Lions Trans CLARO Font Alignment Number X July 28 Pay the employees $6,100.00 for work performed during the 4th week of July July 31 Invoice the property management company $20,000.00 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 $24 150 00 supplies on hand Mowing Service at the University: The monthly mowing service was provided to the university por 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 Pooling 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 $3,375.00 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 $915 00 Lenny's Lawn Service, Inc. - Chart of Accounts Account # Account Name Assets: 100 Cash 105 Accounts Receivable 110 Supplies 150 Equipment 155 Accumulated Depreciation Liabilities: 200 Accounts Payable 205 Wages Payable 210 Interest Payable 215 Unearned Revenue 220 Dividends Payable 250 Note Payable Equity: 300 Common Stock 305 Retained Earnings Revenues: 400 Service Revenue Expenses: 500 Supplies Expense 505 Mower Repair Expense 510 Wages Expense 515 Truck Rental Expense 520 Depreciation Expense Directions Trans Chart Accts Journal + Account # Account Name Assets: 100 Cash 105 Accounts Receivable 110 Supplies 150 Equipment 155 Accumulated Depreciation Liabilities: 200 Accounts Payable 205 Wages Payable 210 Interest Payable 215 Unearned Revenue 220 Dividends Payable 250 Equity: 300 Common Stock 305 Retained Earnings Revenues: 400 Service Revenue Expenses: 500 Supplies Expense 505 Mower Repair Expense 510 Wages Expense 515 Truck Rental Expense 520 Depreciation Expense 550 Interest Expense Directions Trans Chart Accts Journal Note Payable Reads GL Assets GL Liab-Eguir Lenny's Lawn Service, Inc. - General Journal Page # 1 2021 Month-Day 7-1 Account Name Posted Debit Credit Account Number 100 250 Cash Notes Payable Borrowed on Note Payable 35,000.00 X X 35,000.00 Directions Trans Chart Acets Journal GL Assets GL Lan-Equity Lenny's Lawn Service, Inc. - General Ledger Account # 100 Cash Journal Debit 2021 Month-Day 7-1 7-1 Page 8 Credit Balance Beginning Balance 38,250.00 35,000.00 38,250.00 DO 73,250.00 Dr Directions Trans Chart Accts Journal GL Assets Gl Lab Equity GL Rev. En Lenny's - July 31, 2021 Pre-Closing Trial Balance Account # Account Name Debit Credit 100 Cash 105 Accounts Receivable 110 Supplies 150 Equipment 155 Accumulated Depreciation 200 Accounts Payable 205 Wages Payable 210 Interest Payable 215 Uneamed Revenue 220 Dividends Payable 250 Note Payable 300 Common Stock 305 Retained Earnings 400 Service Revenue 500 Supplies Expense 505 Mower Repair Expense 510 Wages Expense 515 Truck Rental Expense 520 Depreciation Expense 550 Interest Expense Totals 0.00 0.00 Lenny's Lawn Service, Inc. Income Statement for the Month Ended July 31, 2021 CAUTION Enter amounts into the Financial Statements by typing in the amounts Do NOT copy colls from the General Ledger or Pro Closing Trial Banco Service Revenue Operating Expenses Supplies Mower Repair Wages Truck Rental Depreciation Total Operating Expenses Income from Operations Interest Expense Not Income Note the new line item on Lenny's Income Statement Income from Operations This is Lenny's income from the normal operations of the wn mowing business Interest Expense, which is not a cost of operating the business but rather a cost of financing the business, is shown below Income from Operations. Interest Expense is subtracted from income from Operations to arrive at Net Income 0.00 0.00 $0.00 This is the first time you have prepared a formal Statement of Lenny's Lawn Service, Inc. Statement of Stockholders' Equity for the Month Ended July 31, 2021 This is the first time you have prepared a fornal Statement of Stockholders' Equity for Lenny's This statement shows what caused the change in Common Stock and in Retained Earnings from July 1, 2021 to July 31, 2021 Note that the Retained Earnings column on the statement looks different than the calculation you have been doing each month to determine the Retained Earnings amount needed for the Balance Sheet Beginning Balance is the starting amount in previous Retained Earrings calculations, you used Current Balance as the starting amour Beginning Balance is the starting point for this calculation, because Dividends is shown as a line item (a deduction) in the Retained Earnings column Common Slock Retained Earnings + Beginning Balance July 1, 2021 Issue Coron Stock Net Income Dividends Ending Balance July 31, 2021 Total $0.00 0.00 D.DO 0.00 $0.00 The Ending Balance in the Betained Earnings columnes the balance needed for the Balance Shoot $0.00 5000 Lenny's Lawn Service, Inc. Balance Sheet as of July 31, 2021 Enter amounts into ti Do NOT copy cells f Assets Current Assets Cash Accounts Receivable Supplies Total Current Assets Note the followi Lenny's Balance 0.00 Property & Equipment: Equipment Accumulated Depreciation Property & Equipment, net Total Assets Total Current A which will turn-in be consumed du comparison of TC Liabilities gives's that is, its ability t 0.00 $0.00 Property & Equip Asset cost, which accounting period: Liabilities & Stockholders' Equity Current Liabilities Accounts Payable Wages Payable Interest Payable Unearned Revenue Total Current Liabilities Long-Term Liabilities Note Payable Total Liabilities Stockholders' Equity Common Stock Directions Trans Chart Accts Ready Total Current Lia liabilities that will re months In the cas current liability will mowing services to 0.00 0.00 Journal GL Assets GL Liab-Equity Lenny's - July 31, 2021 Post-Closing Trial Balance Account # Account Name Debit Credit CA Enter amounts into by typing in the amo Do NOT copy cells fr 100 Cash 105 Accounts Receivable 110 Supplies 150 Equipment 155 Accumulated Depreciation 200 Accounts Payable 205 Wages Payable 210 Interest Payable 215 Unearned Revenue 220 Dividends Payable 250 Note Payable 300 Common Stock 305 Retained Earnings Service Revenue 500 Supplies Expense 505 Mower Repair Expense 510 Wages Expense 515 Truck Rental Expense 520 Depreciation Expense 550 Interest Expense Totals 400 0.00 0.00 Directions Trans Chart Accts Journal GL Assets Ready GL Lab-Equity Instructions: You will be recording the July 2021 transactions for Lenny's Lawn Service, Inc. After recording the July transactions you will be preparing a Pre-Closing Trial Balance, Income Statement, Statement of Stockholders' Equity, Balance Sheet, and Post-Closing Trial Balance, You are given the following: July 2021 transactions and Additional Information Trans tab Chart of Accounts with Account Numbers and Account Names Chart Accts tab General Journal pages Journal tab > General Ledger GL Assets, GL Liab-Equity, GL Rev-Exp tabs Forms for the July 31, 2021. Pre-Closing Trial Balance (Trial Bal tab), Income Statement and Calculation of Retained Earnings (IS & RE tab), Balance Sheet (BalSht tab), and Post-Closing Trial Balance (Post Close TB tab) > To Complete Your Workbook do the following: Print the July Transactions (click the Trans tab and then click the Printer Icon) Use YOUR Transaction sheets - do not use another student's sheets -5 Print the Chart of Accounts (click the Charts Accts tab and then click the Printer Icon) Record the July transactions in the General Journal Click the Journal tab and record your entries directly into the General Journal Look at the July 1 Noles Payable transaction, which has already been entered, for an example of how to make your entries Do not put the "x" in the Posted column at this time Use the printed Chart of Accounts as a reference source for the Account Numbers and Account Names that are available in Lonny's accounting system To make posting from the Gonora Journal to the General Lodgor easier, it is recommended that you print the General Journal - click the Journal tab and then click the Printer Icon th (po Post the nines trom the printed General Journal to the Goneral Ledaccaccounts Directions TonsChart Acct Journal GA ce Record the July transactions in the General Journal. Click the Journal tab and record your entries directly into the General Journal. Look at the July 1 Notes Payable transaction, which has already been entered for an example of how to make your entries Do not put the "X" in the Posted column at this time. Use the printed Chart of Accounts as a reference source for the Account Numbers and Account Names that are available in Lenny's accounting system To make posting from the General Journal to the General Ledger easier, it is recommended that you print the General Journal - click the Journal tab and then click the Printer Icon Post the entries from the printed General Journal to the General Ledger accounts. Click the GL Assets, GL Liab-Equity, and GL Rev-Exp tabs to find the accounts to be posted. Record your postings directly into the General Ledger. As you post an amount to an account be sure to enter the General Journal Page # into the Journal Page # column. See the first posting to the Cash account for an example. After you post an amount to a General Ledger account, then hand write an "X" in the Posted column of the printed General Joumal. This will help you keep track of which entries you have posted Enter the "X"s, which you hand wrote on your General Journal pages, into the General Journal. Click the Journal tab and enter the "X"s in the Posted column Pc Determine the required adjusting entries as of July 31, 2021. The information needed for the adjusting entries is on the page titled "Additional Information". This is the second page that printed when you printed the Trans tab. Click the Journal tab and record your adjusting entries in the General Journal Use the printed Chart of Accounts as a reference source for the Account Numbers and Account Names that are available in Lonny's accounting system. Put your adjusting entries on Page # 4 of the General Journal Pors the adjusting entries from the General Journal to the General Ledger accounts Click the GL Assets, GL Liab-Equity, and GL Rev-Exp tabs to find the accounts to be posted. As you post an amount to an account be sure to enter the General Journal Page 1 into the journal Page #rom Anot Vastan mount ton Gamladan account Directions Trans Chart Accts Journal GL Assets GL Lab Equity GL Rev. Expl Type here to search Post the adjusting entries from the General Journal to the General Ledger accounts. Click the GL Assets, GL Liab-Equity, and GL Rev-Exp tabs to find the accounts to be posted. As you post an amount to an account be sure to enter the General Journal Page # into the Journal Page # column. After you post an amount to a General Ledger account, click back on the Journal tab and enter an "X" in the Posted column of the General Journal. - Print Lenny's General Ledger by: clicking the GL Assets tab and then clicking the Printer icon, clicking the GL Liab-Equity tab and then clicking the Printer icon, and clicking the GL Rev-Exp tab and then clicking the Printer icon Using the printed General Ledger, enter the ending account balances into the July 31, 2021 Pre-Closing Trial Balance. Click the Trial Bal tab and enter the amounts into the Pre-Closing Trial Balance. Print the July 31, 2021 Pre-Closing Trial Balance by clicking the Printer icon Using the printed July 31, 2021 Pre-Closing Trial Balance, prepare the July 2021 Income Statement Click the IS & RE tab and enter the amounts into the Income Statement = Using the printed General Ledger and the Net Income amount, prepare the July 2021 Statement of Stockholders' Equity Click the IS & RE tab and enter the amounts into the Statement of Stockholders' Equity Using the printed July 31, 2021 Pre Closing Trial Balance and the Retained Earnings amount from the Statement of Stockholders' Equity, prepare the July 31, 2021 Balance Sheet Cheth Rachita and entertain the Balance Sheet Directions Trans Chart Accts Journal GL Assets GL liab-Equi HA Using the printed July 31, 2021 Pre-Closing Trial Balance and the Retained Earnings amount from the Statement of Stockholders' Equity, prepare the July 31, 2021 Balance Sheet Click the BalSht tab and enter the amounts into the Balance Sheet. - Prepare the closing entries. Click the Journal tab and enter the closing entries into the General Journal. Place your closing entries on Page #5 of the General Journal. Post the closing entries from the General Journal to the General Ledger accounts Click the GL Liab-Equity, and GL Rev-Exp tabs to find the accounts to be posted As you post an amount to an account be sure to enter the General Journal Page # into the Journal Page #column. After you post an amount to a General Ledger account, click back on the Journal tab and enter an "X" in the Posted column of the General Journal Click the Post Close TB tab and prepare the July 31, 2021 Post-Closing Trial Balance Your project is complete! Your instructor will provide you with directions on how to submit your project Directions Chant Accts Journa GL Assets GL Lab Equity Type here to search GL Rev.EXE O 1