Larry's Landscaping, Inc. Starts Business On January 1, 2021, Larry's Landscaping, Inc. started business. Larry's Landscaping was started by Larry Plant. To start the corporation, Larry Plant purchased $10,000 of Larry's Landscaping, Inc. Common Stock. The issuance of Common Stock by Larry's Landscaping, Inc. to Larry Plant was the only transaction in January 2021. In February 2021, to continue the financing of the start-up of the business, Larry's Landscaping issued Common Stock to additional owners and borrowed on a long-term note from the bank. Also in February, Larry's Landscaping invested in various items of Property, Plant, & Equipment needed to operate the business. These items of Property, Plant, & Equipment were not placed into service until March 1; thus there will be no Depreciation recorded in the month of February. In March 2021, Larry's Landscaping starting operating the business by performing landscaping services for customers. The following are the Balance Sheets for Larry's Landscaping as of January 31, 2021 (the end of last period) and February 28, 2021 (the end of this period): Larry's Landscaping Balance Sheets as of the End of January and February 2021 February 28, 2021 January 31, 2021 Assets Cash .. . . $ 15,000 $10,000 Total Current Assets 15,000 10,000 Equipment Building Land .. 25,000 100,000 20,000 Total Property, Plant & Equipment 145,000 Total Assets $160,000 ........ ...... $10.000 Liabilities $100,000 Total Liabilities 100,000 Note Payable Long-Term ... $ Owners' Equity 6,000 54,000 1,000 9,000 10,000 Common Stock Paid-in Capital in Excess of Par Value.. Total Owners' Equity Total Liabilities and Equity $160,000 60,000 $10.000
Larry's Landscaping, Inc. Starts Business On January 1, 2021, Larry's Landscaping, Inc. started business. Larry's Landscaping was started by Larry Plant. To start the corporation, Larry Plant purchased $10,000 of Larry's Landscaping, Inc. Common Stock. The issuance of Common Stock by Larry's Landscaping, Inc. to Larry Plant was the only transaction in January 2021. In February 2021, to continue the financing of the start-up of the business, Larry's Landscaping issued Common Stock to additional owners and borrowed on a long-term note from the bank. Also in February, Larry's Landscaping invested in various items of Property, Plant, & Equipment needed to operate the business. These items of Property, Plant, & Equipment were not placed into service until March 1; thus there will be no Depreciation recorded in the month of February. In March 2021, Larry's Landscaping starting operating the business by performing landscaping services for customers. The following are the Balance Sheets for Larry's Landscaping as of January 31, 2021 (the end of last period) and February 28, 2021 (the end of this period): Larry's Landscaping Balance Sheets as of the End of January and February 2021 February 28, 2021 January 31, 2021 Assets Cash .. . . $ 15,000 $10,000 Total Current Assets 15,000 10,000 Equipment Building Land .. 25,000 100,000 20,000 Total Property, Plant & Equipment 145,000 Total Assets $160,000 ........ ...... $10.000 Liabilities $100,000 Total Liabilities 100,000 Note Payable Long-Term ... $ Owners' Equity 6,000 54,000 1,000 9,000 10,000 Common Stock Paid-in Capital in Excess of Par Value.. Total Owners' Equity Total Liabilities and Equity $160,000 60,000 $10.000
Chapter16: Accounting Periods And Methods
Section: Chapter Questions
Problem 3DQ
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Transcribed Image Text:Alt
Larry's Landscaping, Inc. Starts Business
On January 1, 2021, Larry's Landscaping, Inc. started business. Larry's Landscaping was started
by Larry Plant. To start the corporation, Larry Plant purchased $10,000 of Larry's Landscaping,
Inc. Common Stock. The issuance of Common Stock by Larry's Landscaping, Inc. to Larry Plant
was the only transaction in January 2021.
In February 2021, to continue the financing of the start-up of the business, Larry's Landscaping
issued Common Stock to additional owners and borrowed on a long-term note from the bank. Also
in February, Larry's Landscaping invested in various items of Property, Plant, & Equipment needed
to operate the business. These items of Property, Plant, & Equipment were not placed into service
until March 1; thus there will be no Depreciation recorded in the month of February.
In March 2021, Larry's Landscaping starting operating the business by performing landscaping
services for customers.
The following are the Balance Sheets for Larry's Landscaping as of January 31, 2021 (the end of
last period) and February 28, 2021 (the end of this period):
Larry's Landscaping
Balance Sheets
as of the End of January and February 2021
February 28, 2021
January 31, 2021
Assets
Cash
$ 15,000
$10,000
10,000
Total Current Assets
15,000
Equipment
Building
Land
25,000
100,000
20,000
Total Property, Plant & Equipment 145,000
Total Assets $160,000
$10.000
Liabilities
Note Payable Long-Term
$100,000
100,000
$
Total Liabilities
Owners' Equity
6,000
54,000
1,000
9,000
10,000
Common Stock
Paid-in Capital in Excess of Par Value..
Total Owners' Equity
60,000
Total Liabilities and Equity $160,000
$10,000
Transcribed Image Text:Larry's Landscaping
Statement of Cash Flows (Indirect Method)
for the Period February 1 to February 28, 2021
Cash Flows from Operating Activities
Net Income
Cash Provided by Operating Activities
Cash Flows from Investing Activities
Cash Used by Investing Activities
Cash Flows from Financing Activities
Cash Provided by Financing Activities
Increase in Cash from Feb. 1 to Feb. 28, 2021
Beginning Cash Balance February 1, 2021
Increase in Cash from Feb. 1 to Feb. 28, 2021
Ending Cash Balance February 28, 2021
11-1
11-3
11-4
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Wyse
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