Journalizing transactions, posting to T-accounts, and preparing a trial balance Exercise 2-61 continues with the consulting business of Lawlor Lawn Service begun in Exercise 1-47. Here you will account for Lawlor Lawn Service”s transactions as it is actually done in practice.
E2-61 Lawlor Lawn Service completed the following transactions during May:
5
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May 1 |
Received $1,700 and gave capital to Lawlor. Opened bank account titled Lawlor Lawn Service. |
|
3 |
Purchased on account a mower, $1,200, and weed whacker, $240. The equipment is expected to remain in service for four years. |
|
5 |
Purchased $30 of gas. Wrote check #1 from the new bank account. |
|
6 |
Performed lawn services for client on account, $150. |
|
8 |
Purchased $150 of fertilizer supplies from the lawn store that will be used on future jobs.Wrote check #2 from the new bank account. |
|
17 |
Completed landscaping job for client, received cash $800. |
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31 |
Received $100 on account from May 6 sale. |
Requirements
1. Open T-accounts: Cash; Accounts receivable; Lawn supplies; Equipment;
Accounts payable; Lawlor, capital; Lawlor, drawing; Service revenue; and Fuel expense.
2. Journalize the transactions. Explanations are not required.
3. Post to the T-accounts. Key all items by date, and denote an account balance as Bal. Formal posting references are not required.
4. Prepare a trial balance at May 31, 2012.