NARRATIVE OF TRANSACTIONS Nore:Umess sraved onherwise, osmme thot af cas n and owt is cheeking accown reloted) No. Date Transaction 7/1 Larry opened up an account at the Suncoast Bank. He used $1,500 of his own money. He placed $500 in a checking account and $1,000 into savings. 7/2 Larry borrowed SS,000 from his Aunt Flora. He signed a note with 6% interest. The terms of the note were that he was to pay his aunt back by paying $200 on the first day of each mmonth, plus the accrued interest on the note. He put $4,000 into his checking account and S1,000 into savings /3 Larry purchased a 2001 Toyota pickup truck for $2,650. He wrote a check 7/3 Larry paid $100 for one month's insurance on his pickup truck. The insurance company has agreed to an installment plan where he will pay his insurance monthly 7/3 Larry paid $45 for a cell phone service. The phone was free, and the $45 paid for the first month's service. /5 Larry retuned to the bank and obtained a ViSA card 5720 on a lawn mower and tools, on account. (Debit Lawn Equipment) These supplies included gloves, spray paint, stakes, and trimmer line. 75Lamy went to Cypress Home & Garden Center and was able to open an account. He spent 76 At the local hardware store, Larry purchased S250 of supplies by using his VISA card 6 Larry wrote a check at the local gas station for $55 for gas and oil for his pickup truck A memo arrived from the bank, along with a box of 500 additional checks, charging his and the mower 1077 account 518 for the checks. Larry considered this an immaterial amount and charged it all to Office Supplies Expense. 11 77 Larry went to a local stationary store and had 1,000 advertising flyers printed up. They were going to be used to promote his new business. He would post some, and others he would put into newspaper boxes. The flyers cost $220 and are considered promotional materials. He also purchased 5120 of office supplies,consisting of such items as a check register, invoices, business cards, and rubber stamps. He used his VISA for all of these purchases 12 78 Dr. Kumar, who lived across the street, asked Larry to keep his lawn mowed and replace some bushes along his fence. He told Larry that he would be out of town for a month. He paid Larry $300 in advance to do the work 13 Larry paid SSS to have an advertiement placedinthe local tewspaper. He then spen' of the day distributing some of his advertiaing fyers Lamy purchased another $40 of gas ssing his VISA card Lamy finished, so he sent him a bill for $600 14 7/10 1S 1 Lamy was hired by Mr. Lee to landscape around his deck Mc Lee was at work when 6 /3 At the Cypress Heme&Garden Center, Lary charged another S120 in supplics 1714 Mns. Steinburg hired Larty to mow her lawn and create a peresnial Bower bed in the front 1S 75 Lamy decided he needed to takeabeak He withsrew $80 from his checking account to 19 716 Lry charged 555 on his VISA cand for an oil change and some other minor of her house. She agreed to pay a sotal of S400 for the work. She paid $150 now and will pay the balance later go out for pizea and a movie with bis elder brocher Tonm They wnt in Toos cor ar a evening eur in e londicoping truck wowldn ? be quire the break that Larry war hopling for maintensice on his truck . 20 7/17 Larry paid Cypress Hone &Garden Center $200 on his account 21 7/17 Lasry transfered $500 from bis checking account to his savings account 22 7/18 Larty wrooe a check for $60 for fuel foe the ruck and mower 23 7/19 Larty had no persocal cash on him, so he wrode a business check to pay for bis lunch. The check was for S8. 24 /19 Mrs Yoder pald Larry $35 to mow her lawn and trim her omamential trees 70ryse e puid 5t5 to bave the babery replacet Pickip Truek Maintenance) 26 7/20Larmy paid another $SS for another ad in dle local aewipaper 27 121 Ly received $400 from Me Len, with a note that he would pay e balnce next 28 ury regeived S360 eoa Mrs. Morgan for mowing her lawn Ed creating neu nower 29 7/23 Me Graczyk hired Larry to landicape his pool area. The total job was for $550. Mr 30 724 Mn. Strinburg sent Larry a check for $100 as parial payment on the wark he performed 17/24 Larry charged (on his VISA anoher $125 for supplies 32 7/25 Mrs. Wu paid Lary $125 to mow, vweed, and pat new malch in her gardes beds payday beds Graczyk paid him $100 in cash and will pay the balance at a later date os July 14d 33 34 35 26 Larry wroce a check for $65 for more fuel for his truck and mower 7/27 Lamy paid $70 for more office supplies 30 Larry paid another $100 on his account at Cy press Home & Garden Center /31 This concluded Larmy's first month of his landscaping business. Larty puts together all of the information he nzeds to prepare financial stanements for the month ending July 3 1st A summary of chat information follows Information for Adjustments Larry estimates that his truck will last three years and have an estimated salvage value of $850. (Larry plans on taking $50 depreciation each month on the truck.) The lawn mower and tools should last three years, with no salvage value Larry needs to accrue one month's interest on his loan from Aunt Flora. By July 31st, Larry had completed half of the landsciping job for Dr. Kumar As of July 31st, Larry had $90 of office supplies, S83 of landscaping supplies, and 400 advertising flyers remaining Larry had received notice that his savings account had increased $6 due to interest A1 A2 AS, A6 & A7 AS revenue LEAPING LIZARDS LAWN CARE CHART OF ACCOUNT ASSETS 100 Cash Checking 105 Cash-Savings 110 Accounts Receivable- Mr. Lee Accounts Receivable-Mrs. Steinburg 112 Accounts Receivable-Mr. Gractyk 120 Promotional Materials 130 Office Supplies 140 Landscaping Supplies 150 2001 Toyota Pickup Truck , 151 Accumulated Depreciation Pickup Truck 160 Lawn Eqaipment 161 Accumulated Depreciation-Lawn Equipment LIABILITI 200 Note Payable Aurt Flora 210 Accounts Payable -Cyptess Home & Garden Center 220 Accounts Payable VISA 230 Interest Payable 240 Unearned Revenue 20cos igrs Honr 8Cre CAPITAL 300 Lary Sinoyianis, Capital 310 Lany Sinoyianis, Drawing 320 Income Summary REVENUES 400 Lawn Care/Landscaping Revenue 410 Interest Revenue EXPENSES 500 Landscaping Supplies Expense 510 Gas & Oil Expense 520 Telephone Expense 530 Advertising Expense 540 Office Supplies Expense 545 Interest Expense 550 Pickup Truek Maintenance Expense 560 Promotional Material Expense 570 Insurance Expense 580 Depreciation Expense-Pickup Truck 590 Depreciation Expense-Lawn Equipment NARRATIVE OF TRANSACTIONS Nore:Umess sraved onherwise, osmme thot af cas n and owt is cheeking accown reloted) No. Date Transaction 7/1 Larry opened up an account at the Suncoast Bank. He used $1,500 of his own money. He placed $500 in a checking account and $1,000 into savings. 7/2 Larry borrowed SS,000 from his Aunt Flora. He signed a note with 6% interest. The terms of the note were that he was to pay his aunt back by paying $200 on the first day of each mmonth, plus the accrued interest on the note. He put $4,000 into his checking account and S1,000 into savings /3 Larry purchased a 2001 Toyota pickup truck for $2,650. He wrote a check 7/3 Larry paid $100 for one month's insurance on his pickup truck. The insurance company has agreed to an installment plan where he will pay his insurance monthly 7/3 Larry paid $45 for a cell phone service. The phone was free, and the $45 paid for the first month's service. /5 Larry retuned to the bank and obtained a ViSA card 5720 on a lawn mower and tools, on account. (Debit Lawn Equipment) These supplies included gloves, spray paint, stakes, and trimmer line. 75Lamy went to Cypress Home & Garden Center and was able to open an account. He spent 76 At the local hardware store, Larry purchased S250 of supplies by using his VISA card 6 Larry wrote a check at the local gas station for $55 for gas and oil for his pickup truck A memo arrived from the bank, along with a box of 500 additional checks, charging his and the mower 1077 account 518 for the checks. Larry considered this an immaterial amount and charged it all to Office Supplies Expense. 11 77 Larry went to a local stationary store and had 1,000 advertising flyers printed up. They were going to be used to promote his new business. He would post some, and others he would put into newspaper boxes. The flyers cost $220 and are considered promotional materials. He also purchased 5120 of office supplies,consisting of such items as a check register, invoices, business cards, and rubber stamps. He used his VISA for all of these purchases 12 78 Dr. Kumar, who lived across the street, asked Larry to keep his lawn mowed and replace some bushes along his fence. He told Larry that he would be out of town for a month. He paid Larry $300 in advance to do the work 13 Larry paid SSS to have an advertiement placedinthe local tewspaper. He then spen' of the day distributing some of his advertiaing fyers Lamy purchased another $40 of gas ssing his VISA card Lamy finished, so he sent him a bill for $600 14 7/10 1S 1 Lamy was hired by Mr. Lee to landscape around his deck Mc Lee was at work when 6 /3 At the Cypress Heme&Garden Center, Lary charged another S120 in supplics 1714 Mns. Steinburg hired Larty to mow her lawn and create a peresnial Bower bed in the front 1S 75 Lamy decided he needed to takeabeak He withsrew $80 from his checking account to 19 716 Lry charged 555 on his VISA cand for an oil change and some other minor of her house. She agreed to pay a sotal of S400 for the work. She paid $150 now and will pay the balance later go out for pizea and a movie with bis elder brocher Tonm They wnt in Toos cor ar a evening eur in e londicoping truck wowldn ? be quire the break that Larry war hopling for maintensice on his truck . 20 7/17 Larry paid Cypress Hone &Garden Center $200 on his account 21 7/17 Lasry transfered $500 from bis checking account to his savings account 22 7/18 Larty wrooe a check for $60 for fuel foe the ruck and mower 23 7/19 Larty had no persocal cash on him, so he wrode a business check to pay for bis lunch. The check was for S8. 24 /19 Mrs Yoder pald Larry $35 to mow her lawn and trim her omamential trees 70ryse e puid 5t5 to bave the babery replacet Pickip Truek Maintenance) 26 7/20Larmy paid another $SS for another ad in dle local aewipaper 27 121 Ly received $400 from Me Len, with a note that he would pay e balnce next 28 ury regeived S360 eoa Mrs. Morgan for mowing her lawn Ed creating neu nower 29 7/23 Me Graczyk hired Larry to landicape his pool area. The total job was for $550. Mr 30 724 Mn. Strinburg sent Larry a check for $100 as parial payment on the wark he performed 17/24 Larry charged (on his VISA anoher $125 for supplies 32 7/25 Mrs. Wu paid Lary $125 to mow, vweed, and pat new malch in her gardes beds payday beds Graczyk paid him $100 in cash and will pay the balance at a later date os July 14d 33 34 35 26 Larry wroce a check for $65 for more fuel for his truck and mower 7/27 Lamy paid $70 for more office supplies 30 Larry paid another $100 on his account at Cy press Home & Garden Center /31 This concluded Larmy's first month of his landscaping business. Larty puts together all of the information he nzeds to prepare financial stanements for the month ending July 3 1st A summary of chat information follows Information for Adjustments Larry estimates that his truck will last three years and have an estimated salvage value of $850. (Larry plans on taking $50 depreciation each month on the truck.) The lawn mower and tools should last three years, with no salvage value Larry needs to accrue one month's interest on his loan from Aunt Flora. By July 31st, Larry had completed half of the landsciping job for Dr. Kumar As of July 31st, Larry had $90 of office supplies, S83 of landscaping supplies, and 400 advertising flyers remaining Larry had received notice that his savings account had increased $6 due to interest A1 A2 AS, A6 & A7 AS revenue LEAPING LIZARDS LAWN CARE CHART OF ACCOUNT ASSETS 100 Cash Checking 105 Cash-Savings 110 Accounts Receivable- Mr. Lee Accounts Receivable-Mrs. Steinburg 112 Accounts Receivable-Mr. Gractyk 120 Promotional Materials 130 Office Supplies 140 Landscaping Supplies 150 2001 Toyota Pickup Truck , 151 Accumulated Depreciation Pickup Truck 160 Lawn Eqaipment 161 Accumulated Depreciation-Lawn Equipment LIABILITI 200 Note Payable Aurt Flora 210 Accounts Payable -Cyptess Home & Garden Center 220 Accounts Payable VISA 230 Interest Payable 240 Unearned Revenue 20cos igrs Honr 8Cre CAPITAL 300 Lary Sinoyianis, Capital 310 Lany Sinoyianis, Drawing 320 Income Summary REVENUES 400 Lawn Care/Landscaping Revenue 410 Interest Revenue EXPENSES 500 Landscaping Supplies Expense 510 Gas & Oil Expense 520 Telephone Expense 530 Advertising Expense 540 Office Supplies Expense 545 Interest Expense 550 Pickup Truek Maintenance Expense 560 Promotional Material Expense 570 Insurance Expense 580 Depreciation Expense-Pickup Truck 590 Depreciation Expense-Lawn Equipment