Explore BrainMass
Share

Explore BrainMass

    Prepare entries, general ledger, trial balance, adjustments

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

    During its first month of operation, the Parkview Landscaping Corporation, which specializes in residential landscaping,
    completed the following transactions:

    July 1 Began business by making a deposit in a company bank account of $24,000, in exchange
    for 4,800 shares of $5 par value common stock.

    July 1 Paid the premium on a one-year insurance policy, $2,400.

    July 1 Paid the current month's rent, $2,080.

    July 3 Purchased landscaping equipment from Brookwood Company, $8,800. Paid $1,200 down and the balance was
    placed on account. Payments will be $400.00 per month for nineteen months. The first payment is due 8/1.
    Note: Use Accounts Payable for the Balance Due.

    July 8 Purchased landscaping supplies from Lakeside 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 Lakeside Company, $400.

    July 31 Received cash for landscaping revenue for the last half of July, $2,620.

    July 31 Declared and paid cash dividend of $1,600.

    Prepare journal entries to record the July transactions in the General Journal below. Use the following account names for journal entries.

    General Journal Chart of Accounts: Account Title (Normal Balance)
    Date Description(Account Name) Debit Credit
    Assets
    Cash (Debit)
    Prepaid Insurance (Debit)
    Landscaping Supplies (Debit)
    Landscaping Equipment (Debit)
    Accum Depr -Equipment (Credit)

    Liabilities
    Accounts Payable (Credit)
    Income Tax Payable (Credit)

    Stockholders Equity
    Common Stock (Credit)
    Retained Earnings (Credit)
    Dividends (Debit)

    Revenue
    Landscaping Revenue (Credit)

    Expenses
    Rent Expense (Debit)
    Utility Expense (Debit)
    Insurance Expense (Debit)
    Supplies Expense (Debit)
    Depreciation Expense (Debit)
    Income Tax Expense (Debit)

    0 0

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

    © BrainMass Inc. brainmass.com October 10, 2019, 4:10 am ad1c9bdddf
    https://brainmass.com/business/trial-balance/prepare-entries-general-ledger-trial-balance-adjustments-450258

    Attachments

    Solution Summary

    The expert prepares entries, general ledgers, trial balances and adjustments.

    $2.19