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 journalze and posta transaction -- this transaction has already been entered into the General Journal and posted to the General Ledger July 1 Receive 579,300.00 cash from new investors, and issue $79,300,00 of Common Stock to them July 1 Purchase $60,300.00 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 57,155.00 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 55.900.00 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 57.100.00 for work performed during the 2nd week of July July 15 Purchase 51.825.00 of supplies from the mower dealer. The supplies are consumed immediately UD 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 supples are consumed immediately Lenny's will pay the mower dealer for the supplies in about 2 weeks. July 15 Collect $7,155.00 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 $905.00. Lenny's wa 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 $28,275,00 advance payment from the universty. 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 job is $6,500.00 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 S1,825.00 cash to the mower dealer for the supplies purchased on account on July 15 July 28 Pay the employees 56.890.00 for work performed during the 4th week of July July 31 Invoice the property management company $24,050.00 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 548,000.00 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 n the Solid Footing text (POF OF 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 we be scrapped The new equipment will be deprecated using the straight line method At the end of July there are 527 980.00 supplies on hand Supplies: Mowing Service at the University. The monthly mowing service was provided to university per the contract signed on Apri 1.2021 For information on the contract with the university and the related advance payment see Papes 95 and 98 in the Solid Footing text (PDF 08. Adusting Entries Continued) Wages Duc the Employees: The last wage payment was made to the employees on Joy 20, 2021. The employees worked on July 29, 30, and 31. For these three days of work the employees earned $2.395.00 of wages The three days of wages will be paid to the workers during the first week of August 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 Entres 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 $2,395.00 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 cals the bank on July 31 and the bank indicates that the interest on the loan for July is $840.00 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 Lenny's Lawn Service, Inc. - General Journal Page 1 Posted Debil Credit 2021 Account Account Name Month-owy Number 1.1 100 Cash 250 Notes Payable Borrowed on Note Payable X 35,000.00 35,000.00 7-1 79,300.00 100 300 Cash Common Stock Issuance of common stock XX 79,300.00 7.1 60,300.00 150 100 X X Equipment Cash Purchase of Mower equipment 60,300.00 500.00 7.1 515 100 X 500.00 Truck Rental Expenses Cash Payment of Truck Rental expenses Trial Lih IS & SEquity GL Rerp Journal Post Close TB GL Lab Equity GL Assets HIS JE Lenny's Lawn Service, Inc. - General Journal Page # 2 Posted Debit Credit 2021 Account Account Name Month-Day Number 7.14 510 Wages Expenses 100 Cash Payment of Wages Expenses X 7,100.00 7,100.00 7-15 1,825.00 500 200 Supplies Expenses Accounts Payable Record Purcase of Suplies on Account XX 1,825.00 + 7-15 7,155.00 100 105 Cash Account Receivable Record Cash Collection on Account 7,155.00 7-17 905.00 505 200 Mower Repair Expenses Accounts Payable Cash paid for Mower repair XX 905.00 7-19 110 Supplies 26.950 00 Lenny's Lawn Service, Inc.. General Journal Part 3 Posted Debit Credit 2021 Account Account Name Month-Day Number 7-27 100 Cash 400 Service Revenue Record Service Provided x x 3,725.00 3,725.00 7-27 200 100 Account Payable Cash Record Cash Paymento on Account 182500 XX 1,825.00 + 7-28 6,890.00 510 100 Wages Expenses Cash Payment of Wages Expenses X 6,890.00 7-31 24,050.00 105 400 Account Receivable Service Revenue Record Service Provided on Account X 24,050.00 7-31 220 Dividend Payable 30,000.00 Balsh Trial Bal Post Close TB Trans Journal IS & SEquity Assets Directions Chart Act GL Revip Gl Lab-Equity Lenny's Lawn Service, Inc. - General Journal Page 4 Account Name Posted Debit Credit 2021 Account Month-Day Number 7-31 520 210 Interest Expenses Interest Payable Record Accrual of Interest Expenses X 7-31 400 305 Service Revenue Retained Earnings Record the entry to Close Revenue ale x x + 731 305 500 505 510 515 520 550 Retained Earings Supplies expense Mower Repair Expense Wages Expense Truck rental Expense Depreciation Expense Interest Expense Record The Entry To Close Expenses a X X X Trial Bal IS & SEquity GL Rev Exp Salsht Gl List-Equity Post Close 18 Journal Chart Acds GLASS Directions Team Accessibility Instigate Ready tu H115 Lenny's Lawn Service, Inc. - General Journal Page 5 2021 Account Account Name Monthly Number Posted Debit Credit Chart Acets Post Close 18 Directions Journal GL Assets GL Lab Equity Trial Bal IS & SEquity GL RevExp Samuel Tejada Lenny's Lawn Service, Inc. - General Ledger Account # 100 Cash CAUTION Enter amounts into the accounts by typing in the amounts Do NOT copy cells from the General Journal into the accounts journal Pages Debit Credit Balance 38,250.00 35,000.00 38 250 00 Dr 73 250 00 Dr 1 2021 Month-Day 7-1 Beginning Balance 7-1 7-1 7-1 7-1 7-7 7-10 7.12 7-14 7-15 7-19 7-20 7-21 7-23 IS & SEquity Basht Trial Bal Post Close TB Directions Gab-Equity Chart Accts Trans Journal G Rev Exp GL Assets Account # 105 Accounts Receivable Journal Page Debit Credit Balance 33,500.00 33,500.00 DI 2021 Month-Day 7-1 Beginning Balance 7-3 7-12 7-15 7-20 7-25 7-31 + + Account # 110 Supplies Journal Page Credit Balance 2021 Month-Day 7-1 Beginning Balance 7-19 7-31 Debit 4,375.00 4,375.00 DE Inal Balsht GLA Post G Lab Equal GL Rev Exp Trial Bol IS & SEquity 7-12 7-15 7-20 7-25 7-31 Account # 110 Supplies Journal Page Debit Credit 2021 Month-Day 7-1 Beginning Balance 7-19 7-31 Balance 4,375,00 DI 4,375.00 Balsh IS & SEquity Post Close TB Journal Trial Bal GL ab Equity GL Assets GL Rev Exp M150 Ermninment Direction Trans Chart Accts Ready Accessibility: Investigate a Account # 150 Equipment Journal Page Credit Balance 2021 Month Day 71 Beginning Balance 7-1 Debit 48,000.00 48,000,00 DE Account # 155 Accumulated Depreciation Journal Page Debit Credit 2021 Month-Day 7.1 Beginning Balance 7-31 Balance 18,000.00 18,000.00 BalSht Post Close IS & SEquity Directions GL Assets Journal Chart Acd GL Lieb-Equity GL Rex-Exp Trial al Trans Lenny's Lawn Service, Inc. - General Ledger Account 200 Accounts Payable CAUTION Enter amounts into the accounts by typing in the announts Do NOT copy cells from the General Journal in the accounts Journal Page 1 Debit Credit Balance 0.00 0.00 2021 Monthly 7.1 Beginning Balance 7-15 7.17 7-21 + Account # 205 Wages Payable Journal Pages Debit 2021 Month-Day 7-1 Beginning Balance 7-31 Credit 0.00 Balance 0.00 CP Post Close TB Bath Trans Journal IS & SEquity Trial al Dertions GL Assets GL Lab Equity GL Rev Op Chant Acds 111 Unde Clipboard Alignment Number Styles Fama Calli teng Anar 073 Font Is 7.5 Wages Payable Account # 205 Journal Debit Credit 2021 Mowth Day 71 Beginning Balance 7.31 Balance 0:00 C 0.00 Account # 210 Interest Payable Jour Page 1 Debit Credit 2021 Month Owy 7-1 Beginning Balance 731 Balance 0.00 000 Account #215 Unearned Revenue Debit Page 2021 Month Day 7.1 Beginning Blanco 723 Credit 8,000.00 Balance 8,000.00 Trial al Post Close 5 & Equity GE Lish-Equity GL Assets Rev Cap Journal Chat Deco ra Arey westgate De Account W 215 Unearned Revenue Journal Page # Debit Credit Balance 2021 Month-Day 7-1 Beginning Balance 7-23 7-31 8,000.00 8,000.00 C Account # 220 Dividends Payable Journal Page 1 Debit Credit Balance 2021 Month-Day 7-1 Beginning Balance 7-5 7-31 0.00 0.00 CE Account # 250 Directions Note Payable Trans Chart Acets Balsht Trial Sal GL Liab Equity GL Assets IS & SEquity Post Close TB Journal GL Rev Exp Account # 220 Dividends Payable Journal Page Debit Credit Balance 2021 Month-Day 7-1 Beginning Balance 7-5 7-31 0.00 0.00 C Account # 250 Note Payable Journal Page! Debit Credit Balance 2021 Month-Day 7-1 7-1 Beginning Balance 0.00 35,000.00 0.00CH 35,000.00 C 1 Account # 300 Common Stock Journal Page Debit Balance 2021 Month-Day 7-1 Beginning Balance 7-1 Credit 50,000.00 50,000.00 CE Account # 305 Retained Earnings + Journal Page 1 Debit Credit 2021 Month-Day 7-1 Beginning Balance 7-5 Balance 48,125.00 C 48,125.00 Trial Bal 15 & SEquity Bast Post Close TB GL Rey Exp Trans GL Lab Equity Directions Journal Chart Acets GL Assets restante Lenny's Lawn Service, Inc. General Ledger Account # 400 Service Revenue CAUTION Enter amounts into the accounts by typing in the amounts Do NOT copy cells from the General Journal into the accounts Journal Page# Debit Credit Balance 0.00 C 0.00 2021 Month-Day 7-1 Beginning Balance 7-3 7-10 7-25 7-27 7-31 7-31 Account # 500 Supplies Expense Journal Page Debit Credit 2021 Month-Day 7-1 Beginning Balance 7-15 7-31 Balance 0.00 DI 0.00 Account # 505 Mower Repair Expense Credit Balance Journal Page 2021 Month-Day 7.1 7-17 Debit 0.00 0.00 Dr Beginning Balance Easht IS & SEquity Pos Trial Bal GL Rev Exp GL Assets Gl Liab-Equity journal Directions Trans Chart Accts Account # 510 Wages Expense Journal Page Credit Balance Debit 000 0.00 DE 2021 Month Day 7-1 Beginning Balance 7-7 7.14 7-21 7-28 7-31 + Account # 515 Truck Rental Expense Journal Page = Debit Credit Balance 2021 Month-Day 7-1 Beginning Balance 0.00 0.000 74 15 & SEquity Post Close TB Bast GL Rav-Ex Trial al GL Assets Gl Lab Equity Directions Journal Chan Acts Trans Account # 520 Depreciation Expense Journal Page Debit Credit 2021 Month Day 7-1 Beginning Balance 7-31 Balance 0.00 0.00 Dr 43 Account # 550 Interest Expense Journal Page Credit Balance 2021 Month-Day 7.1 Beginning Balance 7:31 Debit 0.00 0.000 15 & SEquity GL Rev Exp Post Close Gl Lab Equity Directions Trans Chart Arct: GL Assets Journal Lenny's - July 31, 2021 Pre-Closing Trial Balance Account Debit Credit 100 105 Account Name Cash Accounts Recewable CAUTION Enter amount into the Pre-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 Equipment Accumulated Depreciation Accounts Payable Wages Payable Interest Payable Uneamed Revenue Dividends Payable Nota Payable Common Stock Retained Eamingo Service Revenue Supplies Expense Mower Repair Expense Wages Expanse Dections Tran Chan A Post Close . IS & SEquity GL RevExp GL Assets G Lab Equity Tralal Journal nina Lenny's Lawn Service, Inc. Income Statement for the Month Ended July 31, 2021 CAUTION Enter amounts into the Financial Sements by typing in the amounts Do NOT copy cols from the General Ledger or Pie Closing Trial Balance Service Revere Operating Expenses Supplies Expense Mower Repair Expense Wages Expense Truck Rental Experts Depreciation Expense Total Operating Expenses Income from Operations Interest Expenso Net Income Los) Note the new infomon Lenny's Incon SA Income from Operation. This is enny's income from the normal portions of the mwing business Interest Expense, which is not a cost of operating the business but the cost of Financing the business is shown below income from Operations West Expense is wated from income from Operations to income 000 0.00 50.00 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 formal Statement of Stockholders' Equity for Lys This statement shows what caused the change in Common Stock and Red Eags from y 1 2011 July 31, 2021 Note that the Retained Earnings column on the statement looks at than the calculation you have been doing each month ta determine the Red Eags El Lab EU Revap Trial al 15 & quity Pet Close TB Journal Chaos G Assets Director Arrestrigate Lenny's Lawn Service, Inc. Statement of Stockholders' Equity for the Month Ended July 31, 2021 This is the from you predalommal State of Stockholder' El tornys. This sent the who ced the change in Common Stock and in Reaned from July 1, 2001 towy 31, 2021. Note that the Retained Earnings column on the statement looks different than the calcun you been dogach month to determine the Red Eaming mounted for the lance Sheet Beginning Balance in the starting amount in Retained Earnings can you used Current ca as the state amount Being Blanc is the starting point for this cation because Dividend is shown on a line item (a deduction in the Red Emin olun The Ending Balance in the Returned Emin is the balance needed for the Bwance Sheet Common Stock Red Eati Total 50.00 0.00 0.00 Beginning Balance July 1, 2021 Issue Common Stock Net income (L03) Dividende Ending Balance July 21, 2021 0.00 $0.00 50.00 5000 ESSE Pust close Trial Bal Chan Acts Journal GLEY GA Direct Trum Anessinstigate Ready a 441 Cloudy Lenny's Lawn Service, Inc. Balance Sheet as of July 31, 2021 CAUTION Enter amounts into the Balance Shes by typing in the amounts Do NOT copy cells from the General Ledge or re-Closing Trial Balance + + 0.00 - Assets Current Assets Cash Accounts Receivable Supplies Total Current Assets Property & Equipment Equipment Accumulated Depreciation Property & Equipment net Total Assets 0.00 50.00 Note the following the new sub total appearing on Lenny's Balance Sheet Total Current Assets a total of those asses which will turn into cash during the next 12 months or be consumed during the next 12 months The como son of Total Current Assets to To Curro Labieglves some indication of Lnny's quity that is stabdy to pay it is in the short form Property & Equipment, net is the amount of red Asset cost which remains to be deprecated in the accounting periods Total Current Liabilities is a total of those liable 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 GLASS GL Lab Equity GL Rev Trial Liabilities & Stockholders' Equity Current Limites Accounts Payable Wages Payable Interest Payable Uneamed Revenue Direction Trans S&Squly BalSht Post Close TB Chan Aceh Journal Lenny's - July 31, 2021 Float Closing Trial Balance Account Name Debit Credit CAUTION Enter mounts to the Post Closing Triat Balance by typing in the amounts DO NOT copy on the General Ledger Account 100 105 150 150 155 200 205 210 215 220 360 300 305 400 500 BOS 510 555 520 Cash AS Recente Supplier Equipment Accumulmeden Account Vages Pyjabu Payable Unevedevenue Dividende Pays Note Common Sto Perid Enings Service Revenue Supplies Expense Mowe Repw Expense Wages En Truck Rental Expense Deprecision Expense interest Expende Totals 550 0.00 0.00 Jobs Lenny's Lavn Service, Inc. Balance Sheet as of July 31, 2021 CAUTION Enter amounts into the Balance Sheet by typing amounts Do NOT copy cells from the General Ledge or Precios Trial Balance 0.00 600 10.00 Assets Duent Assets Cash Accounts Receivable Supplies Tol Current Asset Ecoperto Ecumin Equipment Accumulated Depreciation Property & Equipment.net Total Assets Liabilities & Stockholders Equits Current Liabilities Accounts Payable Wages Paytle Interest Payable Unearned Retur Total Current Liabilities Long-Term Liabilities Note Payable Tot Liabilities Stockbolders' Common Stock Retained Eurings Total Stockholders'Equity Total Liabilities & Stockholders' Equity Note the following threw Subtotas appearing on Lenny's Balance Sheet Total Current Assets is a total of those assets which will turn into cash during the next 12 months or be consumed during the need 12 months. The comparison of Total Current Assetto Total Current Labies gives some indication of Lenny's guidity that it pays in the short Property & Equipment net is the amount of Assetcost, which remains to be deprecated in accounting periods Total Current Liabilities is a total of these abies that will require payment in the next 12 in the case of Und Revenue, this correntability will be ad-or by Lenny delivering mowing services to the University 0.00 0.00 0.00 $0.00 IS & SEC Fake En Gl Rey ExD Trial Bal