During its first month of operation, the Parker Landscaping Corporation, which specializes in residential
landscaping, completed the following transactions:
July 1 Carl Parker began business by investing $24,000 cash in the business
July 1 Paid the premium on a one year insurance policy, $3,000 in cash.
July 1 Paid the current month’s rent, $2,080 in cash.
July 2 Signed his first contract. Received $5,000 cash from customer, but NO WORK HAS BEEN DONE
on the contract.
July 3 Purchased landscaping equipment from Brookwood Company, $8,800. Paid $1,200 down and the
balance was placed on account. Payments will be $400.00 per month for nineteen months.
The first payment is due 8/1.
Note: Use Accounts Payable for the Balance Due.
July 8 Purchased landscaping supplies from Lakeside Company on account, $780.
July 9 Performed services for clients on account, $7,000.
July 10 Paid employee wages in cash, $2,200.
July 12 Paid utility bill for July, $308 in cash.
July 16 Received $2,000 cash from a client on account. (Refer to July 9)
July 19 Made payment on account to Lakeside Company, $400. (Refer to July 8)
July 20 Owner withdrew $1000 cash from the business for his personal use.
July 31 Received $5,000 cash from clients on account. (Refer to July 9).
July 31 Borrowed $4000 cash from the local Citizen National Bank. Signed a note promising
to repay the money in two years.