Journalizing transactions, posting, and preparing a trial balance

In December, 2012, the first five transactions of Adams” Lawn Care Company have been posted to the accounts as follows:

2

Cash

Supply

Equipment

Building

(1) 53,000

(3) 40,000

(2)700

(5) 4,700

(3) 40,000

(4) 50,000

(5)4,700

Accounts payable

Note payable

Adams, capital

(2)700

(4) 50,000

(1) 53,000

3 4 5

Requirements

1. Prepare the journal entries that served as the sources for the five transactions. Include an explanation for each entry as illustrated on page 87.

2. Prepare the trial balance of Adams” Lawn Care Company at December 31, 2012.