Part 1 - Full Accounting Cycle So marks Ms. Freida has started a new Landscaping business in the name of Freida's Ferns on March 19, 2020 Following transactions have taken place during the first month of operation, 1 March 1 - Started Freida's Fems by bringing in $ 15,000 in cash and $5,000 worth of equipment 2. March 1-Took an office space on rent of S 1,000 per month and paid 3 months rent in advance. 3. March 1st - Recruited 4 members to work on landscaping and incurred $ 1.000 towards recruitments expenses 4 March 1"-Borrowed $ 8.000 from bank to invest in new equipment 5. Mach 3-Purchased a new lawn mower for $ 5,000 by paying $ 2.000 upfront and balance is agreed to be paid in 30days. 6 March 3 - Purchased fuel for mowers - $ 1.200 7 March 5-Received an advance of $ 200 from Mr Henry for landscaping work March 6-Purchased office supplies on account 9. March 8-Paid for advertising on a home decor magazine - $1,500 10 March 13 - Paid $ 500 for repairing the mowers In March 15-Performed 200 hours of land mowing work for first 2 weeks including 5 hours on Mr. Henry's. Charged a flat rate of $ 40 per hour of work. All charges collected on same day except for 50 hours of work on Mr. Roy's lawn. 12 March 16 - Paid a bi-weekly salary of $ 2.500 13 March 19 - Paid the balance for equipment purchased on March 3 14 March 20" - Purchased fuel for mowers - $ 1.000 15 March 214-Received a utilities bil for $ 1.100 and is not paid yet 16 March 25- Purchased and paid for an insurance policy (effective from April 1") for 1 year $ 2.400 17. March 31". Performed 180 hours of land mowing work in last 2 weeks. Invoiced $ 40 per hour. All charges are collected except for 30 hours of work on Mr. Jenson's lawn IX March 31" - Paid the 2 bi-weekly salaries - 2.500. 19. March 31"-Charge one month rent and adjust the advance paid for rent (means increase the expense and reduce the asset) 20 March 31" - Paid $ 50 towards interest on loan Required 1. Prepare journal entries for the transactions given above (20 marks 2. Prepare 'T' Accounts (all accounts-cashA/C 2 marks rest teach) 20 marks] 3. Prepare a Trial Balance as at the end of March 15 marks] 4. Prepare a Income Statement for the month of March and Balance Sheet as at the end of March 31". (Add net income to Owners Equity) 15 marks) Hanson International Academy-WINTER 2000 Pages Part 1 - Full Accounting Cycle So marks Ms. Freida has started a new Landscaping business in the name of Freida's Ferns on March 19, 2020 Following transactions have taken place during the first month of operation, 1 March 1 - Started Freida's Fems by bringing in $ 15,000 in cash and $5,000 worth of equipment 2. March 1-Took an office space on rent of S 1,000 per month and paid 3 months rent in advance. 3. March 1st - Recruited 4 members to work on landscaping and incurred $ 1.000 towards recruitments expenses 4 March 1"-Borrowed $ 8.000 from bank to invest in new equipment 5. Mach 3-Purchased a new lawn mower for $ 5,000 by paying $ 2.000 upfront and balance is agreed to be paid in 30days. 6 March 3 - Purchased fuel for mowers - $ 1.200 7 March 5-Received an advance of $ 200 from Mr Henry for landscaping work March 6-Purchased office supplies on account 9. March 8-Paid for advertising on a home decor magazine - $1,500 10 March 13 - Paid $ 500 for repairing the mowers In March 15-Performed 200 hours of land mowing work for first 2 weeks including 5 hours on Mr. Henry's. Charged a flat rate of $ 40 per hour of work. All charges collected on same day except for 50 hours of work on Mr. Roy's lawn. 12 March 16 - Paid a bi-weekly salary of $ 2.500 13 March 19 - Paid the balance for equipment purchased on March 3 14 March 20" - Purchased fuel for mowers - $ 1.000 15 March 214-Received a utilities bil for $ 1.100 and is not paid yet 16 March 25- Purchased and paid for an insurance policy (effective from April 1") for 1 year $ 2.400 17. March 31". Performed 180 hours of land mowing work in last 2 weeks. Invoiced $ 40 per hour. All charges are collected except for 30 hours of work on Mr. Jenson's lawn IX March 31" - Paid the 2 bi-weekly salaries - 2.500. 19. March 31"-Charge one month rent and adjust the advance paid for rent (means increase the expense and reduce the asset) 20 March 31" - Paid $ 50 towards interest on loan Required 1. Prepare journal entries for the transactions given above (20 marks 2. Prepare 'T' Accounts (all accounts-cashA/C 2 marks rest teach) 20 marks] 3. Prepare a Trial Balance as at the end of March 15 marks] 4. Prepare a Income Statement for the month of March and Balance Sheet as at the end of March 31". (Add net income to Owners Equity) 15 marks) Hanson International Academy-WINTER 2000 Pages
