Explore BrainMass

Explore BrainMass

    Donegan's Lawn Care Service: Prepare Trial Balance

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    3.6A Donegan's Lawn Care Service began operations in July 2009. The company uses the following general ledger accounts:

    Cash
    Capital Stock
    Accounts Receivable
    Retained Earnings
    Office Supplies Mowing Revenue
    Mowing Equipment
    Salaries Expense
    Accounts Payable
    Fuel Expense
    Notes Payable

    The company engaged in the following transactions during its first month of operations:

    July 18 Issued 500 shares of capital stock to Patrick Donegan for $ 1,500.

    July 22 Purchased office supplies on account for $ 100.

    July 23 Purchased mowing equipment for $ 2,000, paying $ 400 cash and issuing a 60- day note payable for the remaining balance.

    July 24 Paid $ 25 cash for gasoline. All of this fuel will be used in July.

    July 25 Billed Lost Creek Cemetery $ 150 for mowing services. The entire amount is due July 30.

    July 26 Billed Golf View Condominiums $ 200 for mowing services. The entire amount is due August 1.

    July 30 Collected $ 150 from Lost Creek Cemetery for mowing services provided on July 25.

    July 31 Paid $ 80 salary to employee Teddy Grimm for work performed in July.

    a. Record each of the above transactions in general journal form. Include a brief explanation of the transaction as part of each journal entry.

    b. Post each entry to the appropriate ledger accounts ( use the T account format).

    c. Prepare a trial balance dated July 31, 2009.

    d. Explain why the Retained Earnings account has a zero balance in the trial balance.

    © BrainMass Inc. brainmass.com June 3, 2020, 11:28 pm ad1c9bdddf
    https://brainmass.com/business/accounting/donegans-lawn-care-service-prepare-trial-balance-280863

    Solution Preview

    Solution to your problem is provided herewith in the attached excel file.

    Please note that Retained earning Account has Zero ...

    Solution Summary

    The expert prepares trial balances for Donegan's Lawn Care services.

    $2.19

    ADVERTISEMENT