accounting project

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Journal Entries

REQUIREMENT #1:
During its first month of operation, the IDEAL Landscaping Corporation, which specializes in residential landscaping,
completed the following transactions:
2013
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 DVB, $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 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.
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
July. 1 Cash 24000 Assets
Common stock 24000 Cash (Debit)
Prepaid Insurance (Debit)
July. 1 Prepaid Insurance 2400 Landscaping Supplies (Debit)
Cash 2400 Landscaping Equipment (Debit)
Accum Depr -Equipment (Credit)
July. 1 Rent Expense 2080
Cash 2080 Liabilities
Accounts Payable (Credit)
Jul. 3 Landscaping Equipment 8800 Income Tax Payable (Credit)
Accounts Payable 7600
Cash 1200 Stockholders Equity
Common Stock (Credit)
Jul. 8 Landscaping Supplies 780 Retained Earnings (Credit)
Accounts Payable 780 Dividends (Debit)
Revenue
Jul. 12 Utilities Expense 308 Landscaping Revenue (Credit)
Cash 308
Expenses
Jul. 16 Cash 2724 Rent Expense (Debit)
Landscaping revenue 2724 Utility Expense (Debit)
Insurance Expense (Debit)
Jul. 19 Accounts Payable 400 Supplies Expense (Debit)
Cash 400 Depreciation Expense (Debit)
Income Tax Expense (Debit)
Jul. 31 Cash 2620
Landscaping revenue 2620
Jul. 31 Dividends 1600
Cash 1600
45712 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

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)
24000 2400 2724
2724 2080 2620
2620 1200
308 5344
400
1600 need to show entry to close account to 0
29344 7988 only show final totals
(the 21356) do not show
21356 subtotals
this applies to all T accounts
Prepaid Insurance (117) Rent Expense (511)
2400 200 2080
2400 200 need to show entry to close account to 0
2200
Landscaping Supplies (119) Utility Expense (512)
780 392 308
780 392
need to show entry to close account to 0
388
Landscaping Equipment (144) Insurance Expense (513)
8800 200
need to show entry to close account to 0
Accum. Depr.-Equipment (145) Supplies Expense (514)
140 392
need to show entry to close account to 0
Accounts Payable (212) Depreciation Expense (515)
400 7600 140
780
need to show entry to close account to 0
400 8380
7980
Income Taxes Payable (213) Income Taxes Expense (516)
80 80
need to show entry to close account to 0
Common Stock (311)
24000
it is possible to use the Income summary
you should create a T account to show this
Retained Earnings (312)
1600 $ 2,144
1600 2144
544
Dividends (313)
1600 1600
Berry, Jennifer K: cash balance = debit 21,356

Trial Balance

REQUIREMENT #3:
Prepare a trial balance for July in the space below.
IDEAL Landscaping Corporation
Trial Balance
July 31
Cash 21356
Prepaid Insurance 2400
Landscaping Supplies 780
Landscaping Equipment 8800
Accumulated Deperciation - Equipment
Accounts Payable 7980
Income tax Payable
Common Stock 24000
Retained Earnings
Dividends 1600
Landscaping revenue 5344
Rent Expenses 2080
Utilities Expenses 308
Insurance Expense
Supplies Expense
Depreciation Expense
Income tax Expense
37324 37324
Berry, Jennifer K: debits = 37,324
Berry, Jennifer K: debits = 37,324

Adjusting Entries

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.
General Journal
Date Description(Account Name) Debit Credit
Jul. 31 Insurance Expense 200
Prepaid Insurance 200
Jul. 31 Supplies Expenses 392
Landscape Supplies 392
Jul. 31 Depreciation Expense 140
Accumulated Deperciation - Equipment 140
Jul. 31 Income Tax Expense 80
Income Tax Payable 80
812 812
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

Requirement #6:
Prepare an Adjusted Trial Balance in the space below.
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 37544
Berry, Jennifer K: debits = 37,544
Berry, Jennifer K: debits = 37,544

Financial Statements

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 and the Balance Sheet.
The Statement of Cash Flows is a required Financial Statement, but is not required for this Project.
IDEAL Landscaping Corporation IDEAL Landscaping Corporation IDEAL Landscaping Corporation
Income Statement Statement of Retained Earnings Balance Sheet
For the Month Ending July 31 For the Month Ending July 31 July 31
Revenues: Retained Earnings, July 1 $ - Assets:
Landscaping Revenue $ 5,344 Add: Net Income 2,144 Cash 21,356
Subtotal 2,144 Prepaid Insurance 2,200
Expenses: Less: Dividends 1,600 Landscaping Supplies 388
Rent Expense 2,080 Retained Earnings, July 31 $ 544 Landscaping Equipment 8,800
Utility Expense 308 Less: Accum. Depr. -140
Insurance Expense 200 Total Assets 32,604
Supplies Expense 392
Depreciation Expense 140 Liabilities:
Income Taxes Expense 80 Accounts Payable 7,980
Total Expenses 3,200 Income Taxes Payable 80 8,060
Total Liabilities
Net Income $ 2,144 Stockholders' Equity:
Common Stock 24,000
Retained Earnings 544
Total Stockholders' Equity 24,544
Total Liabilities &
Stockholders' Equity $ 32,604
Berry, Jennifer K: NI = 2,144
Berry, Jennifer K: Retained Earnings = 544
Berry, Jennifer K: Total liabilities + equity = 32,604

Closing Entries

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.
General Journal
Date Description (Account Name) Debit Credit
Jul. 31 Landscape revenue 5344
Income Summary 5344
Jul. 31 Income Summary 3200
Rent Expense 2080
Utility expense 308
Insurance Expense 200
Supplies Expense 392
Depreciation Expense 140
Income Tax Expense 80
Jul. 31 Income Summary $ 2,144
Retained earnings $ 2,144
Jul. 31 Retained earnings 1,600
Dividends 1,600
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

Requirement #10:
Prepare a post-closing trial balance as of July 31 in the space below.
IDEAL Landscaping Corporation
Post-Closing Trial Balance
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 32744
Berry, Jennifer K: total debits = 32,744
Berry, Jennifer K: total debits = 32,744