Accounting project 1

Your Company was incorporated on January 1, 2021. The business provides a full range of

landscaping services, including landscape design, construction, and maintenance.

The following transactions occurred during the first three months of operations:

January

1 Common stock is issued in exchange for cash in the amount of………….……….. 410,000

1 The company borrows money from the bank by signing a promissory note

in the amount of………………………………………………………………………………………….. 86,100

1 The company pays cash for a one-year insurance policy in the amount of….. 12,300

2 Rent on a storage facility for the month is paid in the amount of………………… 10,250

4 Landscaping equipment is purchased for cash in the amount of…………………. 328,000

7 Supplies are purchased on account in the amount of……………………..….………… 17,958

10 The company pays for advertisements to be run during the current month

in the amount of…………………………………………………………………………………........... 1,538

15 Services are performed for cash in the amount of……………………………..………… 34,030

20 Services are performed on account in the amount of……………………….………….. 17,220

25 A customer pays cash in advance for future services in the amount of………… 6,150

30 Gasoline for the lawn mowers for the current month is paid in cash in the

amount of………………………………………………………………………………………………………. 2,306

February

1 Rent on the storage facility for the month is paid in the amount of…………… 10,250

1 Salaries for the previous month are paid in the amount of……………………….…. 20,500

6 A partial payment is made on account for supplies purchased earlier………… 15,264

9 The company pays for advertisements to be run during the current month

in the amount of………………………………………………………………………………...……….. 1,614

10 Services are performed for cash in the amount of………………………………………… 35,732

18 Services are performed on account in the amount of………………………….……….. 18,081

20 Cash is received from credit customers for services performed in the

previous month in the amount of…………………………………………………………….….. 15,498

25 Services performed for the customer who paid in advance totaled…………… 2,460

27 Gasoline for the lawn mowers for the current month is paid in cash in the

amount of………………………………………………………………………………………………………. 2,422

March

1 Rent on the storage facility for the month is paid in the amount of…………… 10,250

1 Salaries for the previous month are paid in the amount of………………………….. 21,525

5 Supplies are purchased on account in the amount of…………………………………… 19,754

12 The company pays for advertisements to be run during the current month

in the amount of………………………………………………………………………………………….. 1,808

16 Services are performed for cash in the amount of……………………………………….. 40,020

22 Services are performed on account in the amount of………………………………….. 20,251

25 Cash is received from credit customers for services performed in the

previous month in the amount of………………………………………………………………... 17,177

26 A partial payment is made on account for supplies purchased earlier………… 14,816

29 Services performed for the customer who paid in advance totaled…………… 1,845

30 Gasoline for the lawn mowers for the current month is paid in cash in the

amount of………………………………………………………………………………………………………. 2,712

31 Dividends are paid in cash to stockholders' in the amount of……………………… 4,100

ACTG 2200

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Information for Monthly Adjusting Entries

a. Supplies on hand at the end of each month are as follows:

January………………………………………………………………………………………………………… 10,775

February………………………………………………………………………………………………………. 3,053

March…………………………………………………………………………………………………………… 14,223

b. Depreciation for each month totals:…………………………………………………………….. 5,467

c. Employees are paid on the first of the month for salaries earned in the

previous month. Accrued salaries at the end of each month are as follows:

At January 31………………………………………………………………………………………………….. 20,500

At February 28………………………………………………………………………………………………… 21,525

At March 31……………………………………………………………………………………………………. 24,108

d. The principal on the loan is due in 2 years. Interest (at a rate of 10%) is

accrued at the end of each month and is payable at the end of each year,

beginning December 31, 2020. (ROUND TO THE NEAREST DOLLAR.)

e. Adjustments are made at the end of each month for prepaid insurance.

(ROUND TO THE NEAREST DOLLAR.)

REQUIRED:

For each month:

1. Prepare journal entries for each transaction listed above (with descriptions).

2. Post journal entries to the general ledger accounts.

3. Prepare an unadjusted trial balance.

4. Prepare all necessary adjusting journal entries (with descriptions)

and post to the general ledger.

5. Prepare an adjusted trial balance.

6. Prepare the following financial statements:

a. Income Statement

b. Statement of Stockholders' Equity

c. Balance Sheet (classified)

7. Prepare closing entries and post to the general ledger.

Your project must be completed in Excel. Handwritten projects will NOT be accepted.

On the due date, prior to class, submit an electronic copy of your project on Canvas.

FILE-SHARING OF ANY KIND IS STRICTLY PROHIBITED!!

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