Lennys Lawn Care Project

For BIY Bravau To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates. fx Lenny's Lawn Service, Inc. Transactions - Additional Information 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 $78,700.00 cash from new investors, and issue $78,700.00 of Common Stock to them. July 1 Purchase $60,000.00 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 $6,785.00 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 $30,000.00 The Date of Record is set as July 15. The Date of Payment is set as July 31. July 7 Pay the employees $5,900.00 for work performed during the 1st week of July. July 10 Complete a mowing job for a new customer-customer pays $4,250.00 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 $7,100.00 for work performed during the 2nd week of July. July 15 Purchase $1,825.00 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 $6,785.00 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 $880.00. Lenny's will pay the mower dealer in 30 days. July 19 Purchase for cash $26,950.00 of supplies. These supplies will be consumed over the next 12 months. Directions Trans Chart Accts Journal GL Assets GL Lab-Equity GL Rev-Exp Conditione Formatting 5% & A A BT-A- To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates July 1 CORICE 33,00. Come your use or PUCHUN MOS Jou compete IT Mayen July 14 Pay the employees $7100.00 for work performed during the 2nd week of July, July 15 Purchase $1,825.00 of supplies from the mower deelor. The supplies are consumed immediately. Lenny's will pay the mower dealer for the supplies in about 2 weeks July 15 Collect 56,785.00 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 $88000. Lenny's will pay the mower dealer in 30 days July 19 Purchase for cash $26,950.00 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 $7.500.00 for work performed during the 3rd week of July. July 23 Receive a $27,525.00 advance payment from the university. The advance payment is for 6 months a 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 $6,300.00 The golf course pays $1,000.00 cash on this date and will pay the remainder on August 25 July 27 Complete a mowing job for a new customer-customer pays $3,725.00 cash for the job. July 27 Pay $1.825.00 cash to the mower dealer for the supplies purchased on account on July 15. July 28 Pay the employees $6,890.00 for work performed during the 4th week of July July 31 Invoice the property management company $24.250.00 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. a DO 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 Trans Chart Acct Journal AOL Assets GL Lab-Equity AGL Rev-Exp Directions sert Draw AA B 5% 9 Condition Formattin date To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates July 28 Pay the employees $6,890.00 for work performed during the 4th week of July July 31 Invoice the property management company $24,250.00 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 $28,030.00 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 eamed $2,345.00 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 $825.00 Trans Directions Chart Accts Journal GL Assets AGL Liab-Equity AGL Rev-Exp Tri ert Draw Page AL B 5% 9 Condition Formattin Bate To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates fx quipment: 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 $28,030.00 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 che 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 eamed $2,345.00 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 $825.00 Directions Trans Chart Accts Journal AGL Assets GL Lab-Equity AGL Rev-Exp TH save Chapter 101 - Accounting Cycle Project 14 - Sared to my Mac BESU: Draw Insert Page Layout Formulas Data Review View Tell me Confora Toniga ce Update To keep up-to-date with security updates, fixes and improvements, choose Check for Updates x x Lenny's Lawn Service, Inc. - Chart of Accounts Account Account Name 100 105 110 150 155 200 205 210 215 220 250 Assets: Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Liabilities: Accounts Payable Wages Payable Interest Payable Unearned Revenue Dividends Payable Note Payable Equity: Common Stock Retained Earnings Revenues: Service Revenue Expenses: Supplies Expense Mower Repair Expense Wages Expense Truck Rental Expense Depreciation Expense Interest Expense 300 305 400 500 505 510 515 520 550 Directions Trial B Trans A Car Accts A Journal GL Assets GL Liab-Equity GL Re-Exp Lenny's Lawn Service, Inc. General Journal Page # Account Name Posted Debit Credit 2021 Month-Day 7-1 Account Number 100 250 Cash Notes Payable Borrowed on Note Payable 35,000.00 35,0 A Directions Trans Chart Accts A Journ GL Assets GL Liab-Equity dy Paste Conditional Format Formatting as a les 5 Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates. 11 fc Lenny's Lawn Service, Inc. General Ledger CAUTION Enter amounts into the accounts by typing in the amounts Do NOT copy cells from the General Journal into the accounts Account # 100 Cash 2021 Month-Day Journal Page Debit Credit Balance 7.1 Beginning Balance 38,250.00 35,000.00 38,250.00 Dr 73.250.00 Dr 7-1 1 Account # 105 Accounts Receivable Debit Journal Page Credit Balance 2021 Month-Day AR PARA DRAMA Journal GL. Rev-Exp IS & SE GL Assets Trial Bol A Gl Lab-Equity Chart Accts Directions Trans Heady Office Update To keep up-todate with security updates, fires, and improvements, choose Check for Updates C11 f Account # 105 Accounts Recelvable 2021 Month-Day 7-1 Journal Page 1 Credit Debit 33,500.00 Balance 33,500.00 Dr Beginning Balance Account # 110 Supplies Credit Balance 2021 Month-Day 7.1 Beginning Balance Journal Page Debit 4,375.000 4,375.00 Dr Account # 150 Equipment Debit Credit 2021 Month-Day 7-1 Journal Page Balance 48,000.00 Dr Beginning Balance 48,000.00 GL Liab-Equity GL ReExp Trial Bal GL Assets Journal Directions A Trans Chart Acets Ready Pasie as Office Update to keep up to date with security updates, ties, and improvements, choose Check for Updates C11 f Account W 150 Equipment Credit Mar-Day Beginning Balance Debit 48.000.00 Balance 48,000.00 Or Account # 155 Accumulated Depreciation 2021 way 7.1 JO Pas Debit Credit 18.000.00 Balance 18.000.00 Beginning Ina O Rev.Exp SA Jour Chart Accts L Lab Equity Dictions Tran Fly RO * On doo OSC 73 FI 14 # 3 AT $ 4. % 5 6 7 8 N Q E W Y 20 T F n. G H u Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updaten Xfie Lenny's Lawn Service, Inc. General Ledger Account # 200 Accounts Payable CAUTION Enter amounts into the accounts by typing in the amounts Do NOT copy cells from the General Journal into the accounts 2021 Month Day 7-1 Journal Page 8 Debit Credit Balance Beginning Balance 0.00 0.00 C Account # 205 Wages Payable 2021 Morth-Day Journal Page 1 Debit Balance Credit 0.001 7-1 Beginning Balance 0.00 C Account 210 Interest Payable Journal Page Debit 2021 Month-Day 7-1 Credit Balance 0.00 CF Beginning Balance 0.00 Account # 215 Unearned Revenue Debit Credit Balance 2021 Month Day Directions Journal Page 9 Chart Accts Trio Bal GL Liquity OL Rev.Exp Journal OL Assets A IS & SEquity Trans tor Formatting statt Styles Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates = x fc Account # 210 Interest Payable Journal Page 3 Debit 2021 Month Day 7-1 Credit Balance Beginning Balance 0.00 0.00 C Account # 215 Unearned Revenue Journal Page Debit Credit 2021 Month Day 7.1 Balance Beginning Balance 8,000.00 8,000.00 C Account # 220 Dividends Payable Journal Page 1 Debit 2021 Month-Day 7.1 Credit Balance 0.00 C Beginning Balance 0.00 Account 250 Note Payablo Journal Page 1 Debit 2021 Month-Day 7-1 Beginning Balance 7.1 Directions Trans Credit Balance 0.00 0.00 Cr 35,000.00 35,000.00 C GL Assets AOL Lab Equity GL Rev-Exp 1 Journal Chart Acots Tral B A IS & SEquity Formatting Tables Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates vfs Account # 250 Note Payable Journal Page 3 Debit Credit Balance 2021 Month Day 7-1 7-1 Beginning Balance 0.00 35,000.00 0.00 CE 35,000.00 CE Account # 300 Common Stock 2021 Month Day 741 Journal Page Debit Credit Balance 50,000.00 C Beginning Balance 50,000.00 Account # 305 Retained Earings 2021 Month Day 741 Journal Page Debit Credit Balance 48,125.00 Beginning Balance 48,125.00 Trans Chart Accts Directions Joumal GL Assets GL Lisb-Equity Trial Bal GL Rev.Exp IS & SEquity Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates. 010 Lenny's Lawn Service, Inc. - General Ledger CAUTION Enter amounts into the accounts by typing in the amounts Do NOT copy cols from the General Journal into the accounts. Account # 400 Service Revenue 2021 Month Day 7-1 Journal Page 1 Debit Credit Balance 0.00 Cr Beginning Balance 0.00 Account # 500 Supplies Expense Journal Page 2021 Manthony 7.1 Debit Credit Balance Beginning Bilance 0.00 0.00 D Account # 505 Mower Repair Expense 76 Dettate Trans Inel Chart Accts Journal AOL Assets @ GL Lab Equity GL RED Trial B IS & SEquity T Account # 500 Supplies Expense Journal Page 1 Debit Credit 2021 Month-Day 7-1 Beginning Balance Balance 0.001 0.00 Dr Account # 505 Mower Repair Expense Journal Debit Credit 2021 Month Day 7-1 Balance 0.00 Dr Beginning Balance 0.001 Account # 510 Wages Expense Journal Page 1 Debit 2021 Month Day 7-1 Credit Balance 0.00 DE Beginning Balance 0.00 Directions Trans Journal Chart Acts GLA Trial Bar GL Liab-Equity IS & SEquity AGL Bex. === TH Conditional Formal Call Formatting as Table Styles ffice Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates. fx Account # 515 Truck Rental Expense Journal Page Debit 2021 Morth Day 7.1 Credit Balance 0.00 Dr Beginning Balance 0.001 Account # 520 Depreciation Expense Journal Page Debit Credit 2021 Month Day 7.1 Balance Beginning Balance 0.00 0.00 Dr Account N 550 Interest Expense Journal PRO Debit 2021 Mattay 7-1 Credit Balance 0.00 Dr Beginning Balance 0.001 B Chart Acct A Journal OL Assets AOL Rev. IS A SEquity Trans GL Lab Equity TB Direction Hade Lenny's - July 31, 2021 Pre-Closing Trial Balance Account Account Name Debit Credit CAUTION Enter amours into the Pre-Closing Trial Balance by typing in the amounts Do NOT copy cells from the General Ledger 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 Wagen Payable Interest Payable Uneamed Revenue Dividends Payable Note Payable Common Stock Retained Earings Service Revenue Supplies Expense Mower Repair Expense Wages Expense Truck Rental Expense Depreciation Expense Interest Expense Totals 0.00 0.00 Directions Trans Chart Acets Journal GL Assets GL Lab-Equity AOL Re-Exp Thalal Ready 15 A sEquity Conditional Format Call Formatting Table Sys fice Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates. ixfx Lenny's Lawn Service, Inc. CAUTION Enter amounts into the Balance Sheet by typing in the amounts Balance Sheet Do NOT copy cols from the General Ledger or Pre-Closing Trial Balance as of July 31, 2021 Assets Current Assets: Cash Accounts Receivable Supplies Total Current Assets Property & Equipment: Equipment Accumulated Depreciation Property & Equipment, net Total Assets 0.00 0.00 $0.00 Note the following three new sub-totals appearing on Lenny's Balance Sheet Total Current Assets is a total of those assets, which will tum 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 Lonny's liquidity - that is, its ability to pay its bills in the short-term 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 Uneamed Revenue, this current liability will be paid off by Lenny's delivering mowing services to the university 0.00 Liabilities & Stockholders' Equity Current Liabilities: Accounts Payable Wages Payable Interest Payable Uneamed Revenue Total Current Liabilities Long-Term Liabilities: Note Payable Total Liabilities Stockholders' Equity Common Stock Retained Earings Total Stockholders' Equity Total Liabilities & Stockholders' Equity 0.00 0.00 $0.00 A Drections Trans Chart Acets Journal GL Assets GL Lab Equity GL Rev Exp - Tr | S & SEquity Heady Lenny's - July 31, 2021 Post-Closing Trial Balance Debit Credit Account 100 105 CAUTION Enter amounts into the Post-Closing Trial Balance by typing in the amounts Do NOT copy cells from the General Ledger. 110 150 155 200 205 210 215 220 250 300 305 400 500 505 510 515 520 550 Account Name Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Wages Payable Interest Payable Uneamed Revenue Dividends Payablo Note Payable Common Stock Retained Earings Service Revenue Supplies Expenso Mower Repair Expense Wages Expense Truck Rental Expense Depreciation Expense Interest Expense Totals 0.00 0.00