Part iii | Business & Finance homework help

PART III (60 POINTS)

Connect with a professional writer in 5 simple steps

Please provide as many details about your writing struggle as possible

Academic level of your paper

Type of Paper

When is it due?

How many pages is this assigment?

This is the problem that we have used as a demonstration in our lessons. The following is the post-closing trial balance showing the account balances as of April 30, 2004. Spring Garden Lawn Care Incorporated entered into the following transactions during the month of May.

 

Transactions for the month of May

 

1.      Purchased office supplies on credit, $600.

 

2.      Provided lawn care services to clients and received $16,000 in cash.

 

3.      Provided lawn care services to clients on credit. Fees of $8,000 will be received in June.

 

4.      Received $3,000 in cash from several clients in advance for services to be rendered in the future.

 

5.      Paid $1,200 in cash for May advertising.

 

6.      Paid $5,700 in cash for employee wages.

 

Instructions

 

1.         Record the May transactions into a journal.

 

2.         Post the transactions to T ledger accounts (Note: When you are posting transactions to the ledgers, make sure you start with account balances from post-closing trial balance. For example: What would happen to cash balance if you were to post  $5000 debit? The cash balance would be: 25,300 +5,000=$30, 300)

 

3.         Prepare a trial balance.

 

4.         Make adjusting entries for the following:

 

A1-mount of office supplies left as of May 31 is $700

 

A2-$1,700 of the unearned fees earned as of May 31

 

A3-Expired insurance for the month

 

A4-Expired rent for the month

 

A5-Depreciation of the building for the month

 

5.      Post the adjusting entries to appropriate ledgers.

 

6.       Prepare adjusted trial balance.

 

7.      Prepare income statement, statement of retained earnings, and balance sheet.

 

Note: Use the demonstration problem format as shown for Spring Garden Lawn Care Incorporated in LESSONS 2 and 3. Make sure EACH transaction NUMBERED.

 

Spring Garden Lawn Care Incorporated

Post-Closing Trial Balance

As of April 30, 20XX

 

Accounts                                                  Debits             Credits

 

 
 

 

     Cash                                                          25,300

     Accounts Receivable                              11,300

     Office Supplies                                     500

     Prepaid Insurance                                    3,300

     Prepaid Rent                                           46,000

     Office Building                                       80,000

     Accumulated Depreciation                                          $400

     Accounts Payable                                                                2,000

     Unearned Fees                                                                     1,500

     Capital Stock                                                                    150,000

     Retained Earnings                                                             12,500