General journal for the adjusting entries

Assignment Help Accounting Basics
Reference no: EM131299523

Ace Lawn Care Module - Mini Practice Problem

Jim has asked you to prepare financial statements for his first month of operation. The following information relates to the month of May, 2014. (Round all calculations to the nearest whole dollar)

1. On May 2, Jim signed a 1 year, 6% note for $3,500 associated with the purchase of a used truck for the business. The interest will be due with the principle of the note.

2. On May 2, Jim purchased a used truck for $7,000 to use for the lawn care business. He estimates a trade-in value of $500 at the end of the estimated five-year life of the truck.

3. On May 5, Jim purchased a lawn mower for $300 and an aerator for $500. He estimates $0 salvage value for both pieces of equipment and an estimated two-year life for both.

4. On May 6, Jim writes a $600 check for a six month insurance policy that expires October 31, 2014.
Instructions:

1. Using the chart of accounts provided, and the Excel template provided with this assignment, record the adjustments in the Worksheet, calculate the adjusted trial balance and complete the worksheet.

2. Prepare the Income Statement, Statement of Owner's Capital and Balance Sheet for Ace Lawn Care for May, 2014

3. Prepare journal entries, in good form, to record the May adjusting entries. Explanations are optional. Start with Page 3 of the General Journal for the adjusting entries.

4. Post the journal entries to general ledger accounts. There are already transactions in the ledger for the month, you are adding to those transactions.

5. Prepare and post the closing entries for May, 2014. Start with Page 4 of the General Journal for the closing entries

6. Prepare a post-closing trial balance as of May 31, 2014, for Ace Lawn Care.

                                         Ace Lawn Care

                                       Chart of Accounts

Classification

Account Number

Account Name

ASSETS

101

Cash

 

110

Accounts Receivable

 

120

Supplies

 

130

Prepaid Insurance

 

150

Equipment

 

155

Accumulated Depreciation - Equipment

LIABILITIES

201

Accounts Payable

 

220

Notes Payable

 

225

Interest Payable

OWNER'S EQUITY

301

Owner's Capital

 

305

Owner's Drawings

 

310

Income Summary

REVENUES

401

Lawn Service Revenue

EXPENSES

620

Supplies Expense

 

630

Fuel Expense

 

640

Repair and Maintenance Expense

 

650

Advertising Expense

 

660

Insurance Expense

 

670

Depreciation Expense

 

680

Interest Expense

Reference no: EM131299523

Questions Cloud

Find the output taken across the capacitor : Simulate the output using Multisim and compare it to the input when C varies from 0.1 to 10 μF. Perform a "Parameter sweep" analysis on the capacitor over that range using a decade sweep, 2 points per decade. Comment on the output waveform, vis-à-..
Focus on ease of use design considerations : Your technology requirement needs to focus on "ease of use" design considerations. Include in this section how this requirement will positively impact ease of use.
Identify and discuss the key steps in the closing process : Identify and discuss the key steps in the closing process that provide the most opportunity to make mistakes in processing account transactions. Why did you select these steps and what makes them confusing?
Design low-pass op amp circuit to pass only the fundamental : Design a low-pass OP AMP circuit to pass only the fundamental and the next nonzero harmonic of a 20π ms square wave. The gain of the OP AMP should be +5.
General journal for the adjusting entries : Prepare the Income Statement, Statement of Owner's Capital and Balance Sheet for Ace Lawn Care for May, 2014 - Prepare journal entries, in good form, to record the May adjusting entries. Explanations are optional. Start with Page 3 of the General ..
What is the voltage across the resistor : Very basic circuits 0.5 Amps pass through a 100-Ohm resistor. What is the voltage across the resistor? What is the law that you are using to solve this problem?
Find the fourier coefficients of the input : Compare the magnitudes of the fundamental and of the fifth harmonic with that of the third harmonic at the input and output of the tuned filter.
Find the rms value of a half-wave rectified sine wave : Use MATLAB to find the rms value of a half-wave rectified sine wave. Find the fraction of the total average power carried by the dc component plus the first three nonzero ac components in the Fourier series.
What fraction is carried by the ac components : What fraction of the total average power is carried by the dc component? What fraction is carried by the ac components?

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Enter a range of transactions

You are working as an accountant in a regional accounting firm. - Use Saasu to enter a range of transactions and print some reports to assist with the business start-up.

  Transaction impact the accounting equation

Suppose your company sold $25,000 in merchandise to a customer for cash. How does this transaction impact the accounting equation? Suppose your company sold $50,000 in merchandise to a customer for cash. How does this transaction impact the accou..

  Calculate the present value of the lump sum

Calculate the present value of the lump sum needed at retirement for the length of the retirement period and add it to the lump sum needed at retirement.

  Sky company reports a pretax operating loss of 50000 in

sky company reports a pretax operating loss of 50000 in year 3 for both financial reporting and income tax purposes.

  Ordering and receiving mixing and testing the company

a company incurs 1350000 of overhead each year in three departments ordering and receiving mixing and testing. the

  Operations in several south american countries

Roberta Hernandez, PA, serves as controller of a Canadian company that has a significant portion of its operations in several South American countries.

  Find a web site that produces a large amount

Find a web site that produces a large amount of dat a. Investigate caching by running fetchall twice in succession to see whether the rep orted time changes much. Do you get the same content each time? Modify fetchall to print its output to a file..

  Indicate the account names amounts and classifications of

paige candy company offers a coffee mug as a premium for every ten 50-cent candy bar wrappers presented by customers

  By how much did the department over or underspend

Prepare all journal entries, consistent with GAAP, including budgetary and encumbrance entries that the department should make in 2015. Indicate the accounts and amounts related to supplies that the city would report on its year-end statement of reve..

  Deer valley lodge a ski resort in wasatch mountains of utah

deer valley lodge a ski resort in the wasatch mountains of utah has plans to eventually add five new chairlifts.

  How transactions recorded in general and subsidiary ledgers

ACC10008: Financial Information Systems Assessment: MYOB assignment. The assignment is not meant to be a data entry exercise, but you are required to carefully record each transaction to understand how transactions are recorded in both the general ..

  Prepare two income statements for matka company

Prepare two income statements for Matka Company, one using the FIFO and straight line methods and the other using the LIFO and double declining balance methods. Ignore income taxes.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd