Record journal transactions for the information given .
The $48,000.00 beginning balance in the Equipment account relates to the mowing equipment which was purchased on January 2, 2010. For information related to this mowing equipment see Page 70 in the Solid Footing book. This equipment continues to be used and should be depreciated for the month of July. Equipment: The following information relates to the new equipment which was purchased on July 1, 2011 The new equipment was placed into service on July 1, 2011 and should be depreciated for the month of July The estimated useful life of the new equipment is 5 years. -At the end of 5 years, the new equipment will have no future value and will be scrapped. The new equipment will be depreciated using the straight-line method. Supplies: At the end of July there are $15,550.00 supplies on-hand. Mowing Service at the University: The monthly mowing service was provided to the university per the contract signed on Apri 1, 2011 For information on the contract with the university and the related advance payment, see Pages 95 and 98 in the Solid Footing book. Wages Due the Employees: The last wage payment was made to the employees on July 28, 2011. The employees worked on July 29, 30, and 31. For these three days of work the employoes eamed $3,200.00 of wages These three days of wages will be paid to the workers during the first week of August The interest on the loan from 1st Bank will be paid every three months. The first interest payment to the bank will be made on September 30, 2011. Lenny's calls the bank on July 31 and the bank indicates that the interest on the loan for July is $115.00 Bank Loan: The $48,000.00 beginning balance in the Equipment account relates to the mowing equipment which was purchased on January 2, 2010. For information related to this mowing equipment see Page 70 in the Solid Footing book. This equipment continues to be used and should be depreciated for the month of July. Equipment: The following information relates to the new equipment which was purchased on July 1, 2011 The new equipment was placed into service on July 1, 2011 and should be depreciated for the month of July The estimated useful life of the new equipment is 5 years. -At the end of 5 years, the new equipment will have no future value and will be scrapped. The new equipment will be depreciated using the straight-line method. Supplies: At the end of July there are $15,550.00 supplies on-hand. Mowing Service at the University: The monthly mowing service was provided to the university per the contract signed on Apri 1, 2011 For information on the contract with the university and the related advance payment, see Pages 95 and 98 in the Solid Footing book. Wages Due the Employees: The last wage payment was made to the employees on July 28, 2011. The employees worked on July 29, 30, and 31. For these three days of work the employoes eamed $3,200.00 of wages These three days of wages will be paid to the workers during the first week of August The interest on the loan from 1st Bank will be paid every three months. The first interest payment to the bank will be made on September 30, 2011. Lenny's calls the bank on July 31 and the bank indicates that the interest on the loan for July is $115.00 Bank Loan
