Question - During its first month of operation, the Parkview Landscaping Corporation, which specializes in residential landscaping, Completed the following transactions:
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 Brookwood Company, $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 Lakeside 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 Lakeside 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 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.