accounting project

need review 

Journal Entries

, which specializes in residential landscaping,

13

, in exchange

0 shares of $5 par value common stock.

July 1

.

July 1

.

. Paid $1,

down and the balance was

for the Balance Due.

.

.

July 31

.

below.

General Journal

0

(Debit)

July. 1 Prepaid Insurance 2400

(Debit)

Cash 2400

(Debit)

July. 1

Cash 2080

Landscaping Equipment

(Credit)

Accounts Payable

Cash

(Credit)

Landscaping Supplies 780

(Credit)

Accounts Payable 780

(Debit)

308

(Credit)

Cash 308

Cash

2724

(Debit)

(Debit)

Accounts Payable 400

(Debit)

Cash 400

(Debit)

(Debit)

Cash

Landscaping revenue 2620
Jul. 31 Dividends

Cash 1600

45712

REQUIREMENT #1:

During its first month of operation, the

IDEAL Landscaping Corporation

completed the following transactions:

2

0

July 1

Began business by making a deposit in a company bank account of $

24,000

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80

Paid the premium on a one-year insurance policy, $2,

400

Paid the current month’s rent, $

2,080

July 3

Purchased landscaping equipment from DVB, $

8,800

200

placed on account. Payments will be $400.00 per month for nineteen months. The first payment is due 8/1.

Note: Use

Accounts Payable

July 8

Purchased landscaping supplies from Meadow Woods Company on credit, $

780

July 12

Paid utility bill for July, $

308

July 16

Received cash for landscaping revenue for the first half of July, $2,724.

July 19

Made payment on account to Meadow Woods Company, $400.

July 31

Received cash for landscaping revenue for the last half of July, $2,620.

Declared and paid cash dividend of $

1,600

Prepare journal entries to record the July transactions in the

General Journal

Use the following account names for journal entries.

Chart of Accounts: Account Title (Normal Balance)

Date

Description(Account Name)

Debit

Credit

July. 1

Cash

2400

Assets

Common stock

24000

Cash (Debit)

Prepaid Insurance

Landscaping Supplies

Landscaping Equipment

Accum Depr -Equipment (Credit)

Rent Expense

2080

Liabilities

Accounts Payable (Credit)

Jul. 3

8800

Income Tax Payable

7600

1200

Stockholders Equity

Common Stock

Jul. 8

Retained Earnings

Dividends

Revenue

Jul. 12

Utilities Expense

Landscaping Revenue

Expenses

Jul. 16

2724

Rent Expense (Debit)

Landscaping revenue

Utility Expense

Insurance Expense

Jul. 19

Supplies Expense

Depreciation Expense

Income Tax Expense

Jul. 31

2620

1600

45712

Note: Remember that Debits must equal Credits – All of your Journal Entries should balance.

Berry, Jennifer K:
debits = 45,712
Berry, Jennifer K:
debits = 45,712

General Ledger

24000 2400 2724
2724 2080 2620
2620 1200
308

400
1600

) do not show

21356

2400 200 2080
2400 200 need to show entry to close account to 0
780

308

780 392
need to show entry to close account to 0
8800 200

need to show entry to close account to 0

392

need to show entry to close account to 0

400 7600 140
780

need to show entry to close account to 0

400

(213)

(516)

80 80

need to show entry to close account to 0

24000
1600

1600

1600 1600

This Sheet will be used for Requirements 2, 5, and 9
REQUIREMENT #2:
Post the July journal entries to the following T-Accounts and compute ending balances.
Cash (111)	Landscaping Revenue (411)
				5344
						need to show entry to close account to 0
29344	7988	only show final totals
(the				21356
subtotals
this applies to all T accounts
Prepaid Insurance (117)	Rent Expense (511)
		2200
Landscaping Supplies (119)	Utility Expense (512)
							392
			388
Landscaping Equipment (144)	Insurance Expense (513)
Accum. Depr.-Equipment (145)	Supplies Expense (514)
								140
Accounts Payable (212)	Depreciation Expense (515)
8380
			7980
	Income Taxes Payable		Income Taxes Expense
Common Stock (311)
it is possible to use the Income summary
you should create a T account to show this
Retained Earnings (312)
$		2,144
2144
	544
Dividends (313)

Berry, Jennifer K:
cash balance = debit

21,356

Trial Balance

IDEAL Landscaping Corporation
Trial Balance
July 31
Cash 21356
Prepaid Insurance 2400
Landscaping Supplies 780
Landscaping Equipment 8800
Accounts Payable 7980
Common Stock 24000
Retained Earnings
Dividends 1600
Landscaping revenue 5344

2080

308

Insurance Expense
Supplies Expense
Depreciation Expense

37324

REQUIREMENT #3:
Prepare a trial balance for July in the space below.
			Accumulated Deperciation – Equipment
		Income tax Payable
	Rent Expenses
	Utilities Expenses
	Income tax Expense
	37324

Berry, Jennifer K:
debits = 37,324
Berry, Jennifer K:
debits = 37,324

Adjusting Entries

General Journal

Date Description(Account Name) Debit Credit

Jul. 31 Insurance Expense 200
Prepaid Insurance 200
Jul. 31

392

392

Jul. 31 Depreciation Expense 140
Accumulated Deperciation – Equipment 140
Jul. 31 Income Tax Expense 80
Income Tax Payable 80

812

Requirement #4:
Prepare adjusting entries using the following information in the General Journal
below. Show your calculations!
a) One month’s insurance has expired.
b) The remaining inventory of landscaping supplies is $388.
c) The estimated depreciation on landscaping equipment is $140.
d) The estimated income taxes are $80.
Supplies Expenses
Landscape Supplies
	812
Requirement #5:
Post the adjusting entries to the General Ledger T-accounts and compute adjusted balances.
Just add to the balances that are already listed.

Adjusted Trial Balance

IDEAL Landscaping Corporation

Adjusted Trial Balance

July 31
Cash 21356

Prepaid Insurance 2200
Landscaping Supplies 388

Landscaping Equipment 8800

Accumulated Deperciation – Equipment 140

Accounts Payable 7980

Income tax Payable 80

Common Stock 24000
Retained Earnings
Dividends 1600
Landscaping revenue 5344
Rent Expenses 2080
Utilities Expenses 308

Insurance Expense 200
Supplies Expense 392
Depreciation Expense 140
Income tax Expense 80

37544

Requirement #6:
Prepare an Adjusted Trial Balance in the space below.
	37544

Berry, Jennifer K:
debits = 37,544
Berry, Jennifer K:
debits = 37,544

Financial Statements

,

and the

.

IDEAL Landscaping Corporation IDEAL Landscaping Corporation IDEAL Landscaping Corporation
Income Statement Statement of Retained Earnings Balance Sheet

For the Month Ending July 31 July 31

Landscaping Revenue

2,144 Cash 21,356

2,144 Prepaid Insurance

1,600 Landscaping Supplies 388

Rent Expense 2,080

Landscaping Equipment 8,800

Utility Expense 308

Insurance Expense 200

Supplies Expense 392

Depreciation Expense 140

Income Taxes Expense 80 Accounts Payable

Income Taxes Payable 80

Net Income

:

Common Stock 24,000
Retained Earnings 544
Stockholders’ Equity

Requirement #7:
Prepare the financial statements for IDEAL Landscaping Corporation as of July 31 in the space below.
You will only be preparing the	Income Statement	Statement of Retained Earnings	Balance Sheet
The Statement of Cash Flows is a required Financial Statement, but is not required for this Project.
	For the Month Ending July 31
Revenues:	Retained Earnings, July 1	$ –	Assets:
$ 5,344	Add:	Net Income
Subtotal	2,200
Expenses:	Less: Dividends
Retained Earnings, July 31		$ 544
Less: Accum. Depr.	-140
Total Assets	32,604
Liabilities:
7,980
Total Expenses	3,200	8,060
Total Liabilities
		$ 2,144		Stockholders’ Equity
Total Stockholders’ Equity	24,544
Total Liabilities &
$ 32,604

Berry, Jennifer K:
NI = 2,144
Berry, Jennifer K:
Retained Earnings = 544
Berry, Jennifer K:
Total liabilities + equity = 32,604

Closing Entries

General Journal

Date

Debit Credit

Jul. 31

5344

5344

Jul. 31 Income Summary

Rent Expense 2080

308

Insurance Expense 200
Supplies Expense 392
Depreciation Expense 140
Income Tax Expense 80
Jul. 31 Income Summary $ 2,144

$ 2,144

Jul. 31 Retained earnings 1,600
Dividends 1,600

Requirement #8:
Prepare the closing entries at July 31 in the General Journal below.
Hint: use the balances for each account which appear on the Adjusted
Trial Balance for your closing entries.
Description (Account Name)
Landscape revenue
		Income Summary
3200
Utility expense
	Retained earnings
Requirement #9:
Post the closing entries to the General Ledger T-accounts and compute ending balances.
Just add to the adjusted balances already listed.

Post Closing Trial Balance

IDEAL Landscaping Corporation

July 31

Cash 21356 0
Prepaid Insurance 2200 0
Landscaping Supplies 388 0
Landscaping Equipment 8800 0
Accumulated Deperciation – Equipment 0 140
Accounts Payable 0 7980
Income tax Payable 0 80
Common Stock 0 24000
Retained Earnings 0 $ 544

32744

Requirement #10:
Prepare a post-closing trial balance as of July 31 in the space below.
Post-Closing Trial Balance
	32744

Berry, Jennifer K:
total debits = 32,744
Berry, Jennifer K:
total debits = 32,744