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Need help with this accounting question. Thanks. Craig Fisher started a lawn service called Craigs Quick Cut to earn money over the summer months. Transactions
Need help with this accounting question. Thanks.
Craig Fisher started a lawn service called Craigs Quick Cut to earn money over the summer months.
Transactions for the month of June are listed below.
(a) | Invested cash in the business, $3,000. |
(b) | Bought mowing equipment for $1,000: paid $200 in cash and promised to pay the balance over the next four months. |
(c) | Paid garage rent for June, $50. |
(d) | Provided lawn services for customers on account, $520. |
(e) | Paid phone bill, $30. |
(f) | Borrowed cash from the bank by signing a note payable, $500. |
(g) | Bought lawn tools, $480. |
(h) | Collected cash from customers for services performed on account in transaction (d), $400. |
(i) | Paid associates for lawn work done during the first half of the month, $350. |
(j) | Paid for gas and oil for the equipment, $60. |
(k) | Paid cash on account for the mowing equipment purchased in transaction (b), $200. |
(l) | Earned lawn fees of $1,320: $600 in cash and $720 on account. |
(m) | Paid associates for last half of month, $700. |
(n) | Reimbursed associates for costs incurred using their own vehicles for transportation, $150. |
(o) | Paid on note payable to bank, $100. |
(p) | Withdrew cash for personal use, $200. |
Required:
1. | Enter the transactions for June in T accounts. Use the accounting equation as a guide for setting up the T accounts. |
2. | Foot and balance the T accounts where necessary. |
3. | Prepare a trial balance of the accounts as of June 30, 20--. |
4. | Prepare an income statement for the month ended June 30, 20--. |
5. | Prepare a statement of owners equity for the month ended June 30, 20--. |
6. | Prepare a balance sheet as of June 30, 20--. |
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