- 1 Invested 300 Of Her Own Money And Borrowed 450 From Her Father To Start A Neighborhood Mowing Business 2 Rented A 1 (59.86 KiB) Viewed 24 times
- 1 Invested 300 Of Her Own Money And Borrowed 450 From Her Father To Start A Neighborhood Mowing Business 2 Rented A 2 (25.37 KiB) Viewed 24 times
1. Invested $300 of her own money and borrowed $450 from her father to start a neighborhood mowing business 2. Rented a used pickup truck from an uncle for $85 per month. Paid for the first three months in advance 3. Rented a lawnmower (575 per month), an edger ($50 per month), and a wheelbarrow ($10 per month) at an equipment rental store. Paid one month's fees as a security deposit, and the first month's rent in advance 4. During the first two weeks, performed $650 of lawn maintenance services. Customers paid $450 in cash and the balance is on Net 10-day terms 5. Paid $75 for a newspaper advertisement that appeared earlier in the month. 6. During the last half of the month, performed $515 of lawn maintenance services and collected all of it in cash. 7. Collected receivables from the first one-half of the month (n.b. 4). 8. Paid out $105 for gas, oil, and other supplies. 9. Paid back one-half of the money she had borrowed from her father plus 55 for interest 10. Withdrew $200 for personal use. A. Merchandise costing $120,000 was purchased from a supplier using cash. B. Dividends of $25,000 were distributed to owners for their own personal use C Goods costing $112,000 were sold to customers for $140,000 cash. D. Advertising was purchased on social media during the month. The bill for $3,000 was paid. E. Utilities totaling $450 were paid in cash. Display equipment for the convenience store was purchased for $15,000 cash. G. Employees were paid a total of $12,900 for all work performed through the end of the fiscal period. 1A. DR Painting, a sole proprietorship, received $40,000 cash from David Richardson, the sole proprietor. 2A. The business paid $20,000 cash to acquire a truck 3A. The business purchased supplies costing $1,800 on account. 4A. The business painted a house for a client and received $3,000 cash SA. The business painted a house for a client for $4,000. The client agreed to pay in 10 days 6A. The business paid $800 cash toward the supplies purchased in transaction 3A 7A. The business paid employee salaries of $1,000 cash. BA. David Richardson withdrew cash of $1,000. 9A. The business collected $2,600 from the client in transaction SA 10A. David paid $100 cash for personal groceries 11A. Annual insurance for the truck was prepaid, $3,600 12A. A small painting job was done for an elderly couple, they paid $600 with their credit card. Credit card fees payable by the company are 2%. 13A. Bank fees for the month were $15. 14A The business paid the balance owed on the supplies purchased in 3A 15A. The first month's depreciation expense on the truck was $150
Accounting Transactions 1. Owner invested $10,000 in the company 2. The company borrowed $20,000 from a bank 3. The company purchased $12.000 equipment with cash, 4. The company purchased $5,000 merchandise (500 units) on credit 5. Returned 100 units from above (#4) because they were defective. 6. The company sold 500 units of merchandise (from 14) at a price of $11,000. Customer paid 59,000 in cash at the time of sale. 7. The company paid $3,500 salaries 8. The company paid $1,500 rent. 9. The company paid 5500 for advertising in the local paper. 10. Your bank charges you a $14 monthly statement fee. 11. You write a check for a loan payment of $500 for the $3.000 loan you acquired in #2. Of this amount $500 is being applied to the principal, and $40 is loan interest 12. The Company purchased $318 of office supplies on credit