Financial Accounting

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User Generated

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DhnibT

Subject

Business Finance

Description

Lawn Ranger Landscaping Service
Introduction Kyle Cross is a student at Western University. He has worked part time assisting a landscaper since his junior year in high school. At the end of Kyle’s freshmen year of college, his employer, Mr. Sanchez, decided to retire. After several conservations with Mr. Sanchez, Kyle decided to try and start his own lawn care business. Following the advice of his former boss, Kyle decided to simplify his business in several ways. Kyle will concentrate on small residential jobs. He will only bid on jobs he can do himself, eliminating the need for employees and the accompanying taxes and reporting requirements. In order to avoid having to invest in expensive equipment, Kyle will only accept jobs that require a lawn mower, small garden tools, or equipment that he can rent at a reasonable price. Kyle realizes that his real future is in his college education, not lawn care or landscaping. Mr. Sanchez reminded him that it is better to be successful in a small niche than a failure in a big one. As such, he realizes he will have to remain disciplined and turn down jobs that are beyond his abilities and resources. Mr. Sanchez suggested that Kyle have his customers select and purchase any plants and materials required at local garden centers. Kyle’s business will be too small to receive any price discounts from wholesale nurseries. Naturally, Kyle will assist customers in selecting plants.

Instructions: 1. Familiarize yourself with the contents of this document and the Excel file before you begin. 2. Read through the chart of accounts. 3. Prepare the entries using the list of transactions. Put them in the general journal. 4. Post the journal entries from the general journal to the general ledger. 5. Prepare a trial balance using the general ledger totals. 6. Prepare the adjusting entries using the list of transactions. Put them in the general journal. 7. Post the adjusting journal entries from the general journal to the general ledger. 8. Prepare the adjusted trial balance using the general ledger totals. 9. Prepare the financial statements from the adjusted trial balance. 10. Make the appropriate closing entries to the general journal. 11. Post the closing entries to the general ledger. 12. Prepare the post-closing trial balance.

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JOURNAL Page: 1 Date Description Post Ref. Debit Credit JOURNAL Page: 2 Date Description Post Ref. Debit Credit JOURNAL Page: 3 Date Description Post Ref. Debit Credit JOURNAL Page: 4 Date Description Post Ref. Debit Credit JOURNAL Page: 5 Date Description Post Ref. Debit Credit JOURNAL Page: 6 Date Description Post Ref. Debit Credit JOURNAL Page: 7 Date Description Post Ref. Debit Credit ACCOUNT Cash- Checking Date ACCOUNT ACC. NO. Item Cash - Savings P.R. Debit Credit ACC. NO. Date ACCOUNT Item Item ACCOUNT Acc Rec - Mrs. Mercado Date Item Date Debit Acc Rec - Mr. Abrams Date ACCOUNT P.R. ACC. NO. P.R. Debit Credit ACC. NO. P.R. Debit Acc Rec - Mr. Roker Item Credit Credit ACC. NO. P.R. Debit Credit ACCOUNT Advertising Materials Date ACCOUNT Date ACCOUNT Date Item ACC. NO. P.R. Debit Office Supplies Credit ACC. NO. Item P.R. Debit Landscaping Supplies Item Credit ACC. NO. P.R. Debit Credit 100 ACCOUNT Balance 06 Nissan Pickup Truck Date ACCOUNT Item Date 105 ACCOUNT Debit Item P.R. Debit Item P.R. Debit Acc Dep - Pickup Truck Date ACCOUNT P.R. Lawn Equipment Acc Dep - Lawn Equip Balance 110 Balance 111 Balance 112 Date Item ACCOUNT Note Pay - Aunt Martha Date Item ACCOUNT Acc Pay - Young's H&GC Date ACCOUNT Balance Date P.R. Debit P.R. Debit Item P.R. Debit Item P.R. Debit Acc Pay - VISA 120 ACCOUNT Balance 130 Date ACCOUNT Balance 140 Date Item P.R. Debit Item P.R. Debit Item P.R. Debit Unearned Revenue Date ACCOUNT Balance Interest Payable Common Stock ACC. NO. 150 Credit ACCOUNT Balance ACC. NO. 151 Credit ACC. NO. 160 Credit ACC. NO. 161 Date ACCOUNT Balance Date ACCOUNT Item P.R. Item P.R. Item P.R. Dividends Date ACCOUNT Balance Retained Earnings Income Summary Lawn Care/Land Revenue Credit Balance ACC. NO. 200 Credit ACCOUNT Balance ACC. NO. 210 Credit Balance Balance Date P.R. Item P.R. Land Supplies Expense Date ACCOUNT Item Interest Revenue Date ACCOUNT ACC. NO. 220 Credit Date Item P.R. Item P.R. Gas & Oil Expense ACC. NO. 230 Credit ACCOUNT Balance ACC. NO. 240 Credit ACCOUNT Balance ACC. NO. 300 Credit Date Balance Telephone Expense Item P.R. Advertising Expense Date Item ACCOUNT Office Supplies Expense Date Item P.R. P.R. ACC. NO. 310 Debit Credit ACCOUNT Balance ACC. NO. 320 Debit Credit ACCOUNT Balance ACC. NO. 399 Debit Credit ACC. NO. 400 Date Date ACCOUNT Balance Date ACCOUNT Debit Credit Balance ACC. NO. 410 Debit Credit ACCOUNT Balance ACC. NO. 500 Debit Credit Credit Date ACCOUNT Balance ACC. NO. 510 Debit Date Balance Date ACC. NO. 520 Debit Credit Balance ACC. NO. 530 Debit Credit Balance ACC. NO. 540 Debit Credit Balance Interest Expense ACC. NO. 545 Item P.R. Debit PT Maintenance Expense Item Insurance Expense Balance ACC. NO. 550 P.R. Debit Equipment Rental Expense Item Credit Credit Balance ACC. NO. 560 P.R. Debit Credit ACC. NO. 570 Balance Item P.R. Debit Dep Exp - Pickup Truck Item Balance ACC. NO. 580 P.R. Debit Dep Exp - Lawn Equip Item Credit Credit Balance ACC. NO. 590 P.R. Debit Credit Balance Account Title Totals Debit Credit Account Title Totals Debit Credit Account Title Amount Account Title Amount Revenue Total Revenue Expenses Total Expenses ASSETS Account Title Assets LIABILITIES & EQUITY Account Title Amount Liability Total Liabilities Equity Total Equity TOTAL ASSETS TOTAL LIABILITIES AND EQUITY Amount Account Title Totals Debit Credit
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