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The following are the transactions relating to the formation of Cardinal Mowing Services, Inc., and its first month of operations a. The firm was organized
The following are the transactions relating to the formation of Cardinal Mowing Services, Inc., and its first month of operations a. The firm was organized and the initial stockholders invested cash of $660 b. The company borrowed $990 from a relative of one of the initial stockholders, a short-term note was signed. c. Two zero-tum lawn mowers costing $528 each and a protessional trimmer costing $143 were purchased for cash. The original list price of each mower was $671, but a discount was received because the seller was having a sale d. Gasoline, oil, and several packages of trash bags were purchased for cash of $99 e. Advertising flyers announcing the formation of the business and a newspaper ad were purchased. The cost of these items, $187, will be paid in 30 days. f. During the first two weeks of operations, 47 lawns were mowed. The total revenue for this work was $776; $512 was collected in cash, and the balance will be received within 30 days. g. Employees were paid $462 for their work during the first two weeks h. Additional gasoline, oil, and trash bags costing $121 were purchased for cash i. In the last two weeks of the first month, revenues totaled $1,012, of which $413 was collected J. Employee wages for the last two weeks totaled $561 these will be paid during the first week of the next month k. It was determined that at the end of the month the cost of the gasoline, oil, and trash bags still on hand was $33 L Customers paid a total of $165 due from mowing services provided during the first two weeks. The revenue for these services was recognized in transaction f Required a. Record each transaction in the appropriate columns. (If an transaction/Adjustment are not affecting the balance sheet category or income statement, leave the cells blank. Enter decreases to account balances as a negative.) ASSETS LIABILITIES STOCKHOLDERS EQUITY Transaction Accounts Notes Accounts Paid-in Retained Cash -Receivable Supplies EquipmentPayablePayableCapitalEarnings RevenueExpenses a. C. d. g. h. k
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