May 2 May 3 May 4 May 7 May 11 Lafond Services received $61,000 cash and issued common stock to the stockholders. Purchased supplies, $700, and equipment, $11,500, on account. Performed services for a customer and received cash, $5,700. Paid cash to acquire land, $36,000. Performed services for a customer and billed the customer, $3,500. Lafond expects to collect within one month. May 16 Paid for the equipment purchased May 3 on account. May 17 Paid for newspaper advertising, $590. May 18 Received partial payment from customer on account, $1,400. Received and paid the water and electricity bills, $420. May 22 May 29 May 31 May 31 Received $2,700 cash for servicing the heating unit of a customer. Paid employee salaries, $1,900. Declared and paid dividends of $1,700. Requirement 1. Record each transaction in the journal. Key each transaction by date. Explanations are not required. (Record debits first, then credits. Exclude explanations from journal entries.) May 2: Lafond Services received $61,000 cash and issued common stock to the stockholders. Journal Entry Date May Date May Accounts May 3: Purchased supplies, $700, and equipment, $11,500, on account. (Prepare a single compound journal entry.) Journal Entry Date May Accounts Debit May 4: Performed services for a customer and received cash, $5,700. Journal Entry Accounts Debit Credit Debit Credit Credit May 7: Paid cash to acquire land, $36,000. Date May Date May Journal Entry Accounts Date May May 11: Performed services for a customer and billed the customer, $3,500. Lafond expects to collect within one month. Journal Entry Accounts May 16: Paid for the equipment purchased May 3 on account. Journal Entry Debit Accounts Debit Credit Debit Credit Credit May 29: Received $2,700 cash for servicing the heating unit of a customer. Journal Entry Date May May 31 (a): Paid employee salaries, $1,900. Date May Accounts Date May Journal Entry Accounts May 31 (b): Declared and paid dividends of $1,700. Journal Entry Accounts Debit Debit Debit Credit Credit Credi May 17: Paid for newspaper advertising, $590. Date May Date May Journal Entry Accounts May 18: Received partial payment from customer on account, $1,400. Journal Entry Date May Accounts May 22: Received and paid the water and electricity bills, $420. Journal Entry Debit Accounts Debit Debit Credit Credit Credit Requirement 2. Post the transactions to the T-accounts, using transaction dates as posting references. Determine the ending balance in each account. Review the journal entries prepared in previous steps. Cash Accounts Receivable Supplies Equipment Common Stock Dividends Service Revenue Salary Expense Land Accounts Payable Advertising Expense Utilities Expense Requirement 3. Prepare the trial balance of Lafond Services, Inc., at May 31 of the current year. Select the accounts that will appear in the trial balance. Then enter the account balances and total the debits and credits. Review the account balances prepared in a previous step. Lafond Services, Inc. Trial Balance May 31 Account The company Debit Total Requirement 4. Adam Lafond, the manager, asks you how much in total resources the business has to work with, how much it owes, and whether May was profitable (and by how much). Total resources = Amount owed Credit profitable, as it reported of
