Lenny' s Lawn Service. Inc. Income Statement for the Month Ended July 31, 2019.

Account # 100 Cash Journal Page # Credit Balance Beginning Balance 2019 Month-Day 7-1 7-1 7-1 7-1 Debit 38,250.00 35,000.00 78,850.00 7-1 43,500.00 500.00 6,000.00 7-7 7-10 7-12 7-14 6,500.00 3,500.00 7,500.00 7-15 2,585.000 38,250.00 Dr 73,250.00 Dr 152,100.00 Dr 108,600.00 Dr 108,100.00 Dr 102,100.00 Dr 108,600.00 Dr 112,100.00 Dr 104,600.00 Dr 107,185.00 Dr 86,185.00 Dr 116,185.00 Dr 109,335.00 Dr 137,835.00 Dr 138,335.00 Dr 142, 135.00 Dr 140,955.00 Dr 135,655.00 Dr 113,155.00 Dr 21,000.00 7-19 7-20 30,000.00 6,850.00 2 7-21 7-23 7-25 7-27 7-27 7-28 7-31 28,500.00 500.00 3,800.00 1,180.00 5,300.00 22,500.00 Account # 105 Accounts Receivable Journal Page # Debit Credit 2019 Month-Day 7-1 Balance Beginning Balance 33,500.00 2,585.00 7-3 7-12 7-15 7-20 7-25 7-31 3,500.00 2,585.00 30,000.00 33,500.00 Dr 36,085.00 Dr 32,585.00 Dr 30,000.00 Dr 0.00 Dr 3,000.00 Dr 21,800.00 Dr 3,000.00 18,800.00 Account # 110 Supplies Journal Page # Credit Beginning Balance 2019 Month-Day 7-1 7-15 7-19 7-31 Debit 4,375.00 1,180.00 21,000.00 Balance 4,375.00 Dr 5,555.00 Dr 26,555.00 Dr 25,875.00 Dr 680.00 Account # 150 Equipment Journal Page # Debit Credit Balance 2019 Month-Day 7-1 7-1 Beginning Balance 48,000.00 43,500.00 48,000.00 Dr 91,500.00 Dr Account # 155 Accumulated Depreciation Journal Page # Debit Credit Balance 2019 Month-Day 7-1 7-31 Beginning Balance 18,000.00 1,225.00 18,000.00 Cr 19,225.00 Cr Account # 200 Accounts Payable Journal Page # Debit Credit Balance Beginning Balance 2019 Month-Day 7-1 7-15 7-17 7-27 0.00 1,180.00 665.00 0.00 Cr 1,180.00 Cr 1,845.00 Cr 665.00 Cr 1,180.00 Account # 205 Wages Payable Journal Page # Debit Credit Balance 2019 Month-Day 7-1 7-31 Beginning Balance 0.00 2,475.00 0.00 Cr 2,475.00 Cr Account # 210 Interest Payable Journal Page # Debit 2019 Month-Day 7-1 7-31 Beginning Balance Credit 0.00 755.00 Balance 0.00 Cr| 755.00 Cr Account # 215 Unearned Revenue 2019 Month-Day 7-1 Journal Page # Debit Beginning Balance Credit 8,000.00 28,500.00 Balance 8,000.00 Cr| 36,500.00 CM 7-23 Account # 220 Dividends Payable Journal Page # Debit 2019 Month-Day 7-1 7-5 7-31 Beginning Balance Credit 0.00 22.500.00 Balance 0.00 Cr 22,500.00 cm 0.00 Cr 22,500.00 Account # 250 Note Payable Journal Page # Debit Credit Balance 2019 Month-Day 7-1 7-1 Beginning Balance 0.00 35,000.00 0.00 Cr 35,000.00 Cr Account # 300 Common Stock Journal Page # Debit Credit Balance 2019 Month-Day 7-1 7-1 Beginning Balance 50,000.00 78,850.00 50,000.00 Cr 128,850.00 Cr Account # 305 Retained Earnings Journal Page # Debit 2019 Month-Day 7-1 7-5 Credit 48,125.00 Beginning Balance Balance 48,125.00 Cr 25,625.00 Cr 22,500.00 Account # 400 Service Revenue Journal Page # Debit Credit Balance Beginning Balance 2019 Month-Day 7-1 7-3 7-10 7-25 7-27 0.00 2,585.00 6,500.00 3,500.00 3,800.00 18,800.00 0.00 Cr 2,585.00 Cr 9,085.00 Cr 12,585.00 Cr 16,385.00 Cr 35,185.00 Cr 2 7-31 Account # 500 Supplies Expense Journal Page # Debit Credit Balance 2019 Month-Day 7-1 7-31 Beginning Balance 0.00 680.00 0.00 Dr 680.00 Dr Account # 505 Mower Repair Expense Journal Page # Credit 2019 Month-Day 7-1 7-17 Beginning Balance Debit 0.001 665.00 Balance 0.00 Dr 665.00 Dr Account # 510 Wages Expense Journal Page # Debit Credit Balance 2019 Month-Day 7-1 7-7 Beginning Balance 7-14 7-21 7-28 7-31 0.00 6,000.00 7,500.00 6,850.00 5,300.00 2,475.00 0.00 Dr 6,000.00 Dr 13,500.00 Dr 20,350.00 Dr 25,650.00 Dr 28,125.00 Dr Account # 515 Truck Rental Expense Journal Page # Debit Credit 2019 Month-Day 7-1 Balance Beginning Balance 0.00 500.00 0.00 Dr 500.00 Dr 7-1 ET Account # 520 Depreciation Expense Journal Page # Debit Credit 2019 Month-Day 7-1 Balance Beginning Balance 0.001 0.00 Dr 1,225.00 Dr 7-31 1,225.00 Account # 550 Interest Expense Journal Page # Debit Credit 2019 Month-Day 7-1 7-31 Beginning Balance 0.00 755.00) Balance 0.00 Dr 755.00 DO 2 T Lenny's - July 31, 2019 Pre-Closing Trial Balance Account Name Debit Credit 113,155.00 21,800.00 25,875.00 91,500.00 19,225.00 665.00 2,475.00 755.00 36,500.00 Account # 100 105 110 150 155 200 205 210 215 220 250 300 305 400 500 505 510 515 520 550 Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Wages Payable Interest Payable Unearned 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 Totals 35,000.00 128,850.00 25,625.00 35,185.00 680.00 665.00 28,125.00 500.00 1,225.00 755.00 284,280.00 284,280.00 Lenny's Lawn Service, Inc. Income Statement for the Month Ended July 31, 2019 CAUTION Enter amounts into the Financial Statements by typing in the amounts. Do NOT copy cells from the General Ledger or Pre-Closing Trial Balance. Service Revenue 35,185.00 Operating Expenses: Supplies Mower Repair Wages Truck Rental Depreciation Total Operating Expenses Income from Operations Interest Expense Net Income -680.00 -665.00 -28,125.00 -500.00 -1,225.00 (31,195.00) 3,990.00 -755.00 $3,235.00 Note the new line item on Lenny's Income Statement Income from Operations. This is Lenny's income from the normal operations of the lawn 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. Lenny's Lawn Service, Inc. Statement of Stockholders' Equity * for the Month Ended July 31, 2019 This is the first time you have prepared a formal Statement of Stockholders' Equity for Lenny's. This statement shows what caused the change in Common Stock and in Retained Earnings from July 1, 2019 to July 31, 2019. 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 Earnings calculations, you used Current Balance as the starting amount. 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 Stock Beginning Balance July 1, 2019 Issue Common Stock Net Income Dividends Ending Balance July 31, 2019 Retained Earnings Tota! - $0.00 0.00 3,235.00 0.00 $3,235.00 - $3,235.00 --- The Ending Balance in the Retained Earnings column is the balance needed for the Balance Sheet. $0.00 Clerxi Lyu Lenny's Lawn Service, Inc. Balance Sheet as of July 31, 2019 CAUTION Enter amounts into the Balance Sheet by typing in the amounts. Do NOT copy cells from the General Ledger or Pre-Closing Trial Balance. Note the following three new sub-totals appearing on Lenny's Balance Sheet: Assets Current Assets: Cash 113,155.00 Accounts Receivable 21,800.00 Supplies 25,875.00 Total Current Assets 160,830.00 Property & Equipment: Equipment 91,500.00 Accumulated Depreciation 19,225.00 Property & Equipment, net 110,725.00 Total Assets $271,555.00 Total Current Assets is a total of those assets, which will turn into cash during the next 12 months or be consumed during the next 12 months. The comparison of Total Current Assets to Total Current Liabilities gives some indication of Lenny's liquidity -- that is, its ability to pay its bills in the short-term. Liabilities & Stockholders' Equity Property & Equipment, net is the amount of Fixed Asset cost, which remains to be depreciated in future accounting periods. Total Current Liabilities is a total of those liabilities that will require payment in the next 12 months. In the case of Unearned Revenue, this current liability will be "paid-off" by Lenny's delivering mowing services to the university 0.00 Current Liabilities: Accounts Payable Wages Payable Interest Payable Unearned Revenue Total Current Liabilities Long-Term Liabilities: Note Payable Total Liabilities Stockholders' Equity: Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities & Stockholders' Equity 0.00 0.00 $0.00