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Craig Fisher started a lawn service called Craig’s Quick Cut to earn money over the summer months. Fisher has decided to use the following accounts for recording transactions: Transactions for the month of June are listed below. (a) Invested cash in the business, $3,000. (b) Bought mowing equipment for $1,000: paid $200 in cash and promised to pay the balance over the next four months. (c) Paid garage rent for June, $50. (d) Provided lawn services for customers on account, $520. (e) Paid phone bill, $30. (f) Borrowed cash from the bank by signing a note payable, $500. (g) Bought lawn tools, $480. (h) Collected cash from customers for services performed on account in transaction (d), $400. (i) Paid associates for lawn work done during the first half of the month, $350. (j) Paid for gas and oil for the equipment, $60. (k) Paid cash on account for the mowing equipment purchased in transaction (b), $200. (l) Earned lawn fees of $1,320: $600 in cash and $720 on account. (m) Paid associates for last half of month, $700. (n) Reimbursed associates for costs incurred using their own vehicles for transportation, $150. (o) Paid on note payable to bank, $100. (p) Withdrew cash for personal use, $200. REQUIRED 1. Enter the transactions for June in T accounts. Use the accounting equation as a guide for setting up the T accounts. 2. Foot and balance the T accounts where necessary. 3. Prepare a trial balance of the accounts as of June 30, 20--. 4. Prepare an income statement for the month ended June 30, 20--. 5. Prepare a statement of owner’s equity for the month ended June 30, 20--. 6. Prepare a balance sheet as of June 30, 20--. REQUIRED 1. Enter the transactions in T accounts, identifying each transaction with its corresponding letter. 2. Foot and balance the accounts where necessary. 3. Prepare a trial balance as of August 31, 20--.

BuyFind

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
Publisher: Cengage Learning,
ISBN: 9781337794756
BuyFind

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
Publisher: Cengage Learning,
ISBN: 9781337794756

Solutions

Chapter
Section
Chapter 3, Problem 1MP
Textbook Problem

Craig Fisher started a lawn service called Craig’s Quick Cut to earn money over the summer months. Fisher has decided to use the following accounts for recording transactions:

Chapter 3, Problem 1MP, Craig Fisher started a lawn service called Craigs Quick Cut to earn money over the summer months.

Transactions for the month of June are listed below.

  1. (a) Invested cash in the business, $3,000.
  2. (b) Bought mowing equipment for $1,000: paid $200 in cash and promised to pay the balance over the next four months.
  3. (c) Paid garage rent for June, $50.
  4. (d) Provided lawn services for customers on account, $520.
  5. (e) Paid phone bill, $30.
  6. (f) Borrowed cash from the bank by signing a note payable, $500.
  7. (g) Bought lawn tools, $480.
  8. (h) Collected cash from customers for services performed on account in transaction (d), $400.
  9. (i) Paid associates for lawn work done during the first half of the month, $350.
  10. (j) Paid for gas and oil for the equipment, $60.
  11. (k) Paid cash on account for the mowing equipment purchased in transaction (b), $200.
  12. (l) Earned lawn fees of $1,320: $600 in cash and $720 on account.
  13. (m) Paid associates for last half of month, $700.
  14. (n) Reimbursed associates for costs incurred using their own vehicles for transportation, $150.
  15. (o) Paid on note payable to bank, $100.
  16. (p) Withdrew cash for personal use, $200.

REQUIRED

  1. 1. Enter the transactions for June in T accounts. Use the accounting equation as a guide for setting up the T accounts.
  2. 2. Foot and balance the T accounts where necessary.
  3. 3. Prepare a trial balance of the accounts as of June 30, 20--.
  4. 4. Prepare an income statement for the month ended June 30, 20--.
  5. 5. Prepare a statement of owner’s equity for the month ended June 30, 20--.
  6. 6. Prepare a balance sheet as of June 30, 20--.

REQUIRED

  1. 1. Enter the transactions in T accounts, identifying each transaction with its corresponding letter.
  2. 2. Foot and balance the accounts where necessary.
  3. 3. Prepare a trial balance as of August 31, 20--.

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Chapter 3 Solutions

College Accounting, Chapters 1-27
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Ch. 3 - LO4 An investment of cash by the owner will (a)...Ch. 3 - Foot and balance the accounts receivable T account...Ch. 3 - LO3 Complete the following questions using either...Ch. 3 - Analyze the following transaction using the T...Ch. 3 - The following accounts have normal balances....Ch. 3 - What are the three major parts of a T account?Ch. 3 - What is the left side of the T account called? the...Ch. 3 - What is a footing?Ch. 3 - What is the relationship between the revenue and...Ch. 3 - What is the function of the trial balance?Ch. 3 - FOOT AND BALANCE A T ACCOUNT Foot and balance the...Ch. 3 - DEBIT AND CREDIT ANALYSIS Complete the following...Ch. 3 - ANALYSIS OF T ACCOUNTS Richard Gibbs began a...Ch. 3 - NORMAL BALANCE OF ACCOUNT Indicate the normal...Ch. 3 - TRANSACTION ANALYSIS Linda Kipp started a business...Ch. 3 - TRANSACTION ANALYSIS Linda Kipp starred a business...Ch. 3 - ANALYSIS OF TRANSACTIONS Charles Chadwick opened a...Ch. 3 - ANALYSIS OF TRANSACTIONS Charles Chadwick opened a...Ch. 3 - TRIAL BALANCE The following accounts have normal...Ch. 3 - Provided below is a trial balance for Juanitas...Ch. 3 - Provided below is a trial balance for Juanitas...Ch. 3 - Provided below is a trial balance for Juanitas...Ch. 3 - T ACCOUNTS AND TRIAL BALANCE Wilhelm Kohl started...Ch. 3 - NET INCOME AND CHANGE IN OWNERS EQUITY Refer to...Ch. 3 - FINANCIAL STATEMENTS Refer to the trial balance in...Ch. 3 - FOOT AND BALANCE A T ACCOUNT Foot and balance the...Ch. 3 - DEBIT AND CREDIT ANALYSIS Complete the following...Ch. 3 - ANALYSIS OF T ACCOUNTS Roberto Alvarez began a...Ch. 3 - NORMAL BALANCE OF ACCOUNT Indicate the normal...Ch. 3 - TRANSACTION ANALYSIS George Atlas started a...Ch. 3 - TRANSACTION ANALYSIS George Atlas started a...Ch. 3 - ANALYSIS OF TRANSACTIONS Nicole Lawrence opened a...Ch. 3 - ANALYSIS OF TRANSACTIONS Nicole Lawrence opened a...Ch. 3 - TRIAL BALANCE The following accounts have normal...Ch. 3 - Provided below is a trial balance for Bills...Ch. 3 - Provided below is a trial balance for Bills...Ch. 3 - Provided below is a trial balance for Bills...Ch. 3 - T ACCOUNTS AND TRIAL BALANCE Sue Jantz started a...Ch. 3 - NET INCOME AND CHANGE IN OWNERS EQUITY Refer to...Ch. 3 - FINANCIAL STATEMENTS Refer to the trial balance in...Ch. 3 - Craig Fisher started a lawn service called Craigs...Ch. 3 - Your friend Chris Stevick started a part-time...

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