Question

FROM 1 TO 16

Steve Russell started a snow removal and landscaping business he called Total Care Services. Selected transactions for Total Care Services, for the year ended May 31, 2021, are listed below. 1. 2. 3. 4. 5. 6. 7. 8. 9. Steve transfers his used pickup truck valued at $3,870 into the business. Steve invested $2,840 cash in the business and opened a bank account in the name of Total Care Services. Purchased a used snow plow from a dealer for $1,410 paying half as a down payment and half on account. Plowed the parking lot of a local mall and billed the mall management company $880. Paid for gas for the truck $130. Plowed three neighbours' driveways and immediately got paid $75 each. Collected in full the invoice billed to the mall management company. Paid balance owing on the purchase of the snow plow. Purchased a new lawn mower for $760, paying 15% down in cash, the remainder on account. Paid for business cell phone charges of $30. Purchased $360 of lawn maintenance supplies for cash. Billed customers $1,480 for lawn maintenance services completed. Paid balance owing on lawn mower. Collected $755 from customers for services previously billed. Steve withdrew $1,020 cash for personal use. Provided lawn maintenance services totalling $1,150 for several clients - one client whose bill is $135 pays cash, the remainder are on account. 10. 11. 12. 13. 14. 15. 16.

Answer 1

No.	Account Titles and Explanation	Debit	Credit
1	Equipment	$ 3,870
	Capital-Steve		$ 3,870
	[To record equipment transfer into business]
2	Cash	$ 2,840
	Capital-Steve		$ 2,840
	[To record investment in the business to open a bank account]
3	Equipment-Snow plow	$ 1,410
	Accounts payable		$ 705
	Cash		$ 705
	[To record purchase of equipment-snowplow]
4	Accounts receivable	$ 880
	Service revenue		$ 880
	[To record billed for services]
5	Fuel expense	$ 130
	Cash		$ 130
	[To record payment for gas for the truck]
6	Cash	$ 75
	Service revenue		$ 75
	[To record service revenue]
7	Cash	$ 880
	Accounts receivable		$ 8,880
	[To record received cash from service revenue]
8	Accounts payable	$ 705
	Cash		$ 705
	[To record payment of balance on purchases of snow plow]
9	Equipment - Lawn mower	$ 760
	Cash [$760 x 15%]		$ 114
	Accounts payable		$ 646
	[To record purchase of equipment-lawn mower]
10	Utilities expense	$ 30
	Cash		$ 30
	[To record utilities expense]
11	Supplies	$ 360
	Cash		$ 360
	[To record purchase of supplies]
12	Accounts receivable	$ 1,480
	Service revenue		1480
	[To record billed customer for maintenance services]
13	Accounts payable	$ 646
	Cash		$ 646
	[To record payment of balance amount for purchase of lawn mower]
14	Cash	$ 755
	Accounts receivable		$ 755
	[To record collections from customer for services previously billed]
15	Drawings, Capital-Steve	$ 1,020
	Cash		$ 1,020
	[To record steve withdrawals]
16	Account receivable	$ 1,015
	Cash	$ 135
	Service revenue		$ 1,150
	[To record service revenue partly received cash and remaining on account]