Ba 211fundamentals of financial accounting journal entries

Question

Requirements

Use the following transaction descriptions to compose the following 5 items:

• Journal entries for all transactions through the end of year (Dec. 31^st)
• 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. 1^st - 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. 1^st - $1,500 was paid for 3 months' rent in advance.

3.      Dec. 1^st - 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. 8^th - $400 of supplies were purchased on account and paid in cash 30 days later.

5.      Dec. 10^th - lawn service job was performed and payment was $1,250 in cash

6.      Dec. 12^th - a customer paid $1,400 in cash for lawn service to be performed Jan. 10^th

7.      Dec. 15^th - lawn service job was performed and payment was $1,100 in cash

8.      Dec. 17^th - lawn service job was performed and payment was $750 on account, paid in cash 30 days later.

9.      Dec. 20^th - lawn service job was performed and payment was $1,800 in cash

10.  Jan. 1^st - an inventory was done and it was determined $150 of supplies were used in Dec.

11.  Jan. 5^th - a $200 dividend for the prior year was paid in cash

12.  Jan. 5^th - $1,700 in employee wages for Dec. were paid in cash

13.  Jan. 10^th - lawn service job was performed per previous agreement

14.  Mar. 1^st - $450 of income taxes were due for the prior year