Reference no: EM131258196
The following events apply to John's Lawn Service for 2013.
1) Issued stock for $14,000 cash.
2) On January 1, purchased equipment for $12,000. The equipment has an estimated 5-year useful life and a $2,000 salvage value.
3) On May 1, issued a $3,000, 5% 3-year note to a local bank.
4) Performed services of $18,400 and received cash.
5) Paid $15,000 of operating expenses.
6) At December 31, adjusted the records to recognize expense associated with use of the equipment and accrued interest.
Required:
Record the effects of the above events under the appropriate account headings in the accounting formula below.
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: The following events apply to John's Lawn Service for 2013. Record the effects of the above events under the appropriate account headings in the accounting formula below.
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