Question

Instructions Following is a list of transactions entered into during the first month of operations of Gardener Corporation, a new landscape service. April Transactions: April 1 Articles of incorporation are filed with the state, and 100,000 shares of common stock are issued for $100,000 in cash. 4 A six-month promissory note is signed at the bank. Interest at 9% per annum will be repaid in six months along with the principal amount of the loan of $50,000. 8 Land and a storage shed are acquired for a lump sum of $80,000. On the basis of an appraisal, 25% of the value is assigned to the land and the remainder to the building. 10 Mowing equipment is purchased from a supplier at a total cost of $25,000. A down payment of $10,000 is made, with the remainder due by the end of the month. 18 Customers are billed for services provided during the first half of the month. The total amount billed of $5,500 is due within ten days. The remaining balance due on the mowing equipment is paid to the supplier. 27 28 The total amount of $5,500 due from customers is received. 30 Customers are billed for services provided during the second half of the month. The total amount billed is $9,850. Salaries and wages of $4,650 for the month of April are paid. 30 Required: Prepare in journal form the entry to record each transaction.

Answer 1

   

General	Journal				Balance	Sheet		Income	Statement
Date	Account title	Post.Ref	Debit	Credit	Assets	Liabilities	Equity	Revenues	Expenses	Net income
April 1	Cash		100,000		+100,000
	Capital stock			100,000			+100,000
	[ Capital stock issued for cash consideration]
April 4	Cash		50,000		+50,000
	Note payable			50,000		+50,000
	[Cash received in against of note payable ]
April 8	Land [ 80,000 X 25%]		20,000		+20,000
	Buildings [ 80,000 X 75%]		60,000		+60,000
	Cash			80,000	-80,000
	[Storage sheet purchase and allocated between land and buildings]
April 10	Mowing Equipment		25,000		+25,000
	Cash			10,000	-10,000
	Accounts payable			15,000		+15,000
	[Mowing equipment purchased and down payment has been made only ]
April 18	Accounts receivable		5,500		+5,500
	Service revenue			5,500			+5,500	+ 5,500		+ 5,500
	[Service performed on account ]
April 27	Accounts payable		15,000			-15,000
	Cash			15,000	-15,000
	[Creditor for mowing equipment paid ]
April 28	Cash		5,500		+ 5,500
	Accounts receivable			5,500	- 5,500
	[Collection received from debtors ]
April 30	Accounts receivable		9,850		+9,850
	Service revenue			9,850			+9,850	+9,850		+9,850
	[Service performed on account ]
April 30	Salary and wage expense		4,650				-4,650		- 4,650	- 4,650
	Cash			4,650	- 4,650
	[Salary and wages expenses paid ]
Total			295,500	295,500	160,700	50,000	110,700	15,350	4,650	10,700