Question

For each transaction, (1) analyze the transaction using the accounting equation, (2) record the transaction in journal entry form, and (3) post the entry using T-accounts to represent ledger accounts. Use the following (partial) chart of accounts—account numbers in parentheses: Cash (101); Accounts Receivable (106); Office Supplies (124); Trucks (153); Equipment (167); Accounts Payable (201); Unearned Landscaping Revenue (236); Common Stock (307); Dividends (319); Landscaping Revenue (403); Wages Expense (601), and Landscaping Expense (696).
On May 15, DeShawn Tyler opens a landscaping company called Elegant Lawns by investing $89,000 in cash along with equipment having a $49,000 value in exchange for common stock.
On May 21, Elegant Lawns purchases office supplies on credit for $660.
On May 25, Elegant Lawns receives $9,700 cash for performing landscaping services.
On May 30, Elegant Lawns receives $2,900 cash in advance of providing landscaping services to a customer.

Complete this question by entering your answers in the tabs below

Assests Liabilities Equity
a.
b.
c.
d.

Answer 1

Answer:

Accounting Equation:

Asset = Liablities + Equity

a) +89,000 (cash)  =  0 + 89,000 (common stock)

b) +660 office supplies =  +660 (account payable)  + 0

c) +9,700 cash = 0 + 9,700 (Landscaping Revenue)

d) +2,900 cash  = +2.900 Unearned Landscaping Revenue + 0

Total:

Asset 102,260 = Liabilities 3,560 + Equity 98,700

journal entries

A)

cash 89,000 debit

 common stock 89,000 credit

B)

office supplies 660 debit

  account payable 660 credit

C)

cash  9,700 debit

 Landscaping Revenue 9,700 credit

D)

cash       2,900 debit

   Unearned Landscaping Revenue 2,900 credit

T-Accounts

        Cash

Debit          Credit

(A)  89,000

(C)     8,700

(D)    2,900        

Bal: 101,600

Office Supplies

Debit          Credit

(B) 660

Account Payable

Debit          Credit

               (B) 660

Landscaping Revenue

Debit          Credit

               (C) 9,700

Unearned Landscaping Revenue

Debit          Credit

               (D) 2,900

Common Stock

Debit          Credit

           (A) 89,000

Explanation: