on Feb. $1,2023$ the company issued $1$ million shares of common stock for cash.

on Feb. $1,2023$ the company purchased the following:

trucks $($each with an estimated life of $8$ years$)$

Ten lawn mowers $($each with an estimated life of $5$ years$)$

$$,70,000$

$\%$ paid in cash $($upfront$)$

$20\%$

$80\%$

On Feb. $1,2023$ they signed a two$-$year lease for garage space and an attached small

office. Any unpaid rent is to be settled with the landlord every six months.

Annual amount of the rent

Amount paid to the landlord on Feb. $1,2023$

On Feb. $1,2023,$ the following items were purchased on account for a grand total of:

Fuel, blowers, trimmers, $($both expected to last $9-12$ months$),$ fuel containers, spare

$$,95,000$

parts for the lawn mowers, rags, as well as work gloves and t$-$shirts for the labor

force.

On Apr. $1,2023,$ the company purchased an insurance policy for cash.

The policy will expire in this many months after April $1,2023.$

On Apr. $1,2023,$ in exchange for cash, the company signed a $3-$year note due to its bank

Amount of the Note

$$,225,000$

Interest rate $($paid annually$)$

$9\%$

The policy protects the company from potential damages to their clients'

properties, and holds their clients harmless from accidents on their properties.

During its first six months, the company performed landscaping services for customers

with a total invoice value of:

$\%$ of invoice value where the customer paid immediately

$\%$ of invoice value where the customer will pay Four Seasons at a later date

During its first six months, the company incurred the following cash expenses:

Wages expense

Advertising expense

On Aug. $1,2023,$ the company paid its landlord the amount due.

During August, the company paid all amounts due to its suppliers as of Aug. $1.,2023,$ and

also collected all the cash owed from its customers as of Aug. $1,2023.$

$Pgs.4-5$On Sep. $1,2023,$ the following items were purchased on account for a grand total of:

Fuel, blowers, trimmers, $($both expected to last $9-12$ months$),$ fuel containers, spare

parts for the lawn mowers, rags, as well as work gloves and $t-$shirts, etc.

During its second six months, the company performed landscaping services for customers

with a total invoice value of:

$\%$ of invoice value where the customer paid immediately

$\%$ of invoice value where the customer will pay Four Seasons at a later date

$$1,700,000$

$65\%$

$35\%$

During its second six months, the company incurred the following cash expenses:

Wages expense

Advertising expense

In Jan. $2024,$ Four Season's largest corporate client paid Four Seasons for snow removal

services to be performed during Feb. $2024.$

On Jan. $31,2024,$ the company:

Paid the following $\%$ of its amount owed to suppliers

Received cash for the following $\%$ owed from its customers

On Jan. $31,2024,$ the company declared a dividend for this amount. The dividend

will be paid on Feb. $25,2024.$

On Jan. $31,2024,$ the company repurchased $50,000$ of its outstanding shares for cash.

Reread the above items and evaluate where adjusting journal entries are needed for

accounts to be in compliance with GAAP. Also consider:

a$)$ Four Seasons wrote the second check to the landlord on Feb. $3,2024$ for the amount

due.

b$)$ On the morning of February $1,2024,$ Four Seasons staff counted and valued the

items in the garage $($e$.$g$.,$ the remaining fuel, usable blowers and trimmers, spare

parts, work gloves, etc.$).$ The total value counted was:

c$)$ Four Seasons pays its employees every other Friday $($bi$-$weekly payroll$).$ At the

moment payroll is paid, the company has no liability. The last payroll for fiscal year

ending Jan. $31,2023$ was on Friday, Jan. $19,2023.$ Each biweekly payroll $($for two six$-$

day workweeks, Mon. $-$ Sat.$)$ amounts to approximately:

d$)$ The company estimates its income tax rate will be the following percentage of pretax

income:

Other: Weighted Avg. Number of Common Shares Outstanding

$1,000,000$

Pgs$.4-5$