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Larry's Lawncare is an incorporated business run by Larry Leafolower. During its first month of operations, the following transactions occurred: Larry starts the business by
Larry's Lawncare is an incorporated business run by Larry Leafolower. During its first month of operations, the following transactions occurred: Larry starts the business by investing cash of $8,000 and equipment worth $12,000, in exchange for shares of Larry's Lawncare. 2. Larry's Lawncare purchased equipment for $6,500. He paid $1,500 cash and signed a note payable (due in six months) for the remaining amount. 3. Larry's Lawncare incurred $600 in advertising expense. He opened an account with the local advertising firm. The advertising firm will bill him for the ads. .. Larry's Lawncare provided 54,200 of services for several customers. Tom received $1,600 in cash and the rest was billed on account. -. Larry's Lawncare received a $1,000 deposit from a customer to install a new sprinkler: the job will be done next week. Larry's Lawncare paid $2700 cash for wages for Larry and his assistants, Tony and Leah. . Larry's Lawncare paid the advertising bill (item 3) with cash. 8. Larry's Lawncare paid $2,000 for office rent: $1,000 for the current month and $1,000 as prepayment for next month. 5. Customers (from #4) paid $700 to pay down their balance owing to Larry's Lawncare. 10. Larry's Lawncare completed the new sprinkler installation job (from #5) and received the $3,000 balance due on the job. Required: Using the table provided here, show how each transaction affects the accounting equation. You need not indicate the specific accounts affected. Only enter ONE AMOUNT that is the total net amount by which each component of the equatio increases or decreases. DO NOT USE COMMAS, DOLLAR SIGNS, OR ANY OTHER SPECIAL CHARACTERS WHEN ENTERING MONETARY AMOUNTS AND ONLY ENTER AMOUNTS IN DOLLARS (eg. enter 100 not 100.00). ENTER INCREASES AS POSITIVE NUMBERS AND ENTER DECREASES AS NEGATIVE NUMBERS (e.g. if an equation component decreases by $100. enter "-100" (without the quotation marks). When a component of the accountin equation is not affected at all, type in "NA" (used this exact wording, without the quotations). If a component of the equation increases and decreases by the same amount, type in "Net Zero Change" (use this exact wording). Item ASSETS LIABILITIES + SHAREHOLDERS' EQUITY 2. 3
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