LENNYS LAWNCARE TRIALBALANCES PART 3

Lenny's Lawn Service, Inc. - Transactions - Additional Information July 2021 Transactions DO DOOOOOO 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 wook 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 dolor. The supplies are consumed immediately Lenny's will pay the mower dealer for the supplies in about 2 weeks July 15 Collect 36,785.00 on account. The cash that is received is from the new customer for the job that las 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 $800.00. 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 GL Lieb-Equity Thala o OL Rev.Exp Journal OL Assets Chart Accts Trans Direction Ready x x 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 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 of work which will be performed from August 1, 2021 to January 31, 2022 July 25 Completo a special mowing job for the golf course. The tow 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 $4.825.00 canh 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 JODO DO GL Lieb-Equity GL Re-Exp Thalal BOL Assets Journal Trans Dictions Chat Act Ready 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. 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 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. OOO 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 oquipment 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 the new equipment will have no future value and will be scrapped. Trans Chart Acets Journal GL Assets OL Lab Equity OL Rev.Exp Trial Directions Ready 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 GL Rev-END Trial Bal a GL Assets GL Liab-Equity Chart Acets Journal Trans Directions Ready Lenny's July 31, 2021 Pre-Closing Trial Balance Account Debit Credit CAUTION Enter amounts 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 Account Name Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Wages Payable Interest Payable Uneamed Revenue Dividends Payable Note Payable Common Stock Retained Eamings Service Revenue Supplies Expense Mower Repair Expense Wages Expense Truck Rental Expense Depreciation Expense Interest Expense Totals 400 500 505 510 515 520 550 0.00 0.00 A Directions Trans Chart Accts Journal GL Assets GL Liab-Equity GL Rav Exp That Bal IS & SEqui Heady D6 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 Pre-Closing Trial Balance Service Revenue Operating Expenses. Supplies Expense Mower Repair Expense Wages Expense Truck Rental Expense Doprociation Expenso Total Operating Expenses Income from Operations Interest Expense Net Income (Loss) 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 0.00 0.00 $0.00 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 Lenny's. This statement shows what caused the change in Common Stock and in Retained Eamings 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 Earrings amount needed for the Balance Sheet. Beginning Balance is the starting amount. In previous Retaines amings 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 Eamings column. The Ending Balance in the Retained Eamings column is the balance needed for the Balance Sheet. Common Stock Retained Eaminas Beginning Balance July 1, 2021 Issue Common Stock Net Income (Loss) Dividends Ending Balance July 31, 2021 Total $0.00 0.00 0.00 0.00 $0.00 $0.00 $0.00 Directions Trans Chart Accts Journal GL Assets GL Lab-Equity GL Rev-Exp Trial Bal AS & SE Ready Lenny's Lawn Service, Inc. Balance Sheet as of July 31, 2021 CARE Enter amounts into the Balance Sheet by typing in the amounts Do NOT copy cels from the General Ledger or Pre-Closing Trial Balance 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 Lenny'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 deprecated in future accounting periods Total Current Liabilities is a total of those Habilities that will require payment in the next 12 months. In the case of Uncamned 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 Earnings Total Stockholders' Equity Total Liabilities & Stockholders' Equity 0.00 0.00 $0.00 Directions 1 Tran Chart Aceto Journal AGL Assets GL Liab-Equity A GL Rov-Exp Trial Bal IS & SE Ready 5 %) Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates x al Conditional Format Call Formatting Table Styles E6 Lenny's - July 31, 2021 Post-Closing Trial Balance Account Debit Credit CAUTION Enter amounts into the Post-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 Account Name Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Wages Payable Interest Payable Unearned Revenue Dividends Payable Note Payable Common Stock Retained Eaming Service Revenue Supplies Expense Mower Repair Expense Wages Expense Truck Rental Expense Depreciation Expense Interest Expense Totals 0.00 0.00 Direction Trans Chart Accts Journal GL Assets AOL Liab-Equity GL Rev Exp Tralal IS A SEquity Ready