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Question 2 Jeff Ground is the manager/owner of a landscaping business named Ground Rules. The following summarized Ground Rules financial position on October 01, 2018:
Question 2
Jeff Ground is the manager/owner of a landscaping business named Ground Rules. The following summarized Ground Rules financial position on October 01, 2018:
Accounts Accounts Owners
Cash + Receivable + Supplies + Land = Payable + Equity
Balance 35,000 20,000 100,000 45,000 110,000
Ground Rules transacted the following during October 2018:
- Jeff Ground received a $ 10,000 inheritance check and he deposited the Check into Ground Rules bank account.
- Ground Rules collected $ 15,000 of its accounts receivable opening balance.
- Ground Rules paid the opening balance of its accounts payable.
- Ground Rules did some landscaping for a client and invoiced the client $ 25,000.
- Ground Rules purchased $ 7,000 supplies on account.
- Ground Rules incurred the following business expenses:
- Paid $ 5,000 for equipment rental during October 2018
- Paid $ 3,000 for truck repairs during October 2018
- Ground Rules received $ 10,000 cash for yard work done on a huge job site.
- Jeff Ground needed a vacation, so he withdrew $ 4,000 from Ground Rules bank account.
- Jeff Ground returned from his vacation. As he only used $ 2,000 of the $ 4,000 vacation money that he withdrew from the business, he deposited the remaining $ 2,000 into Ground Rules bank account.
Required:
- Complete the transaction sheet for Ground Rules
- Prepare Ground Rules income statement at October 31, 2018.
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