y Moce CASE STUDY Compat orC Foxit PD Review Mailings nces AABBCCI AaBbCcDod AaBb Heading 1 1 Norma 1 No. Paragraph CASE STUDY Fahad formed a lawn service company as a summer job. To start the business on May 1, he deposited $2,500 in a new bank account in the name ofFahad Lawn Service, Inc. consisting of a $1,500 loan from his father and $1,000 ofhis own money. The corporation has a$1,000 as common stock. lies, and hired high school students to mow and equipment, purchased He rented lawn trim customers' lawns. At the end ofeach month, Fahad mailed bills to his customers. On August 31, Fahad was ready to dissolve the business and retum to Regal University for the fall semester. Because he had been so busy, he had kept few records other than his checkbook and a list of amounts owed by customers. At August 31, Fahad's checkbook shows a balance of $2,640, and his customers still owe him S600. During the summer, he collected S5,600 from customers and his service revenue is $6,200. His checkbook lists payments for supplies totaling S400, and he still has gasoline, and other supplies that cost a total of$50 and his supplies expense is S350. He paid his employees' wages of S1,900, and he still owes them S200 for the final week of the summer and his wages expenses is S2,100 Fahad rented some equipment from AlGhanim Tool Company. On May 1, he signed a six- month lease on mowers and paid $600 for the full lease period. AlGhanim will refund the unused portion of the prepayment if the equipment is in good shape. To get the refund, Fahad has kept the mowers in excellent condition. In fact, he had to pay S300 to repair a mower that ran over a hidden tree stump. To transport employees and equipment to jobs, Fahad used a trailer that he bought for S300 He figures that the summer's work used up 113 of the trailer's service potential. The business checkbook lists an expenditure of S460 for dividends paid to Fahad during the summer. Also Fahad paid his father back during the summer S1,500