Requirements
Use the following transaction descriptions to compose the following items:
●Journal entries for all transactions through the end of year (Dec. 31st)
●End of year unadjusted trial balance
●Adjusting journal entries for end of year adjusting transactions
●End of year adjusted trial balance
●Income Statement
●Statement of Retained Earnings
●Balance Sheet
Transactions
1.Dec. 1st – a new company is formed called “Lawn Darter, Inc.” $10,000 cash is contributed to the start-up in exchange for common stock.
2.Dec. 1st – $1,500 was paid for 3 months’ rent in advance.
3.Dec. 1st – a $2,400 riding lawn mower was purchased in cash. This piece of equipment was determined to
have a 2 year (24 month) usable lifespan.
4.Dec. 8th – $400 of supplies were purchased on account and paid in cash 30 days later.
5.Dec. 10th – lawn service job was performed and payment was $1,250 in cash
6.Dec. 12th – a customer paid $1,400 in cash for lawn service to be performed Jan. 10th
7.Dec. 15th – lawn service job was performed and payment was $1,100 in cash
8.Dec. 17th – lawn service job was performed and payment was $750 on account, paid in cash 30 days later.
9.Dec. 20th – lawn service job was performed and payment was $1,800 in cash
10.Jan. 1st – an inventory was done and it was determined $150 of supplies were used in Dec.
11.Jan. 5th – a $200 dividend for the prior year was paid in cash
12.Jan. 5th – $1,700 in employee wages for Dec. were paid in cash
13.Jan. 10th– lawn service job was performed per previous agreement
14.Mar. 1st – $450 of income taxes were due for the prior year1