Answer:
a. Dr Cash $540
Cr Common stock $540
b. Dr Cash $810
Cr Notes payable(ST) $810
c. Dr Equipment $981
Cr Cash $981
d. Dr Supplies $81
Cr Cash $81
e. Dr Advertising expense $153
Cr Account payable $153
f. Dr Cash $419
Dr Accounts receivable $216
Cr Service revenue $635
g. Dr Wages expense $378
Cr Cash $378
h. Dr Supplies $59
CrCash $59
i. Dr Cash $338
Dr Accounts receivable $490
Cr Service revenue $828
j. Dr wages expense $459
Cr Wages payable $459
K. Dr Supplies expense $113
Cr Supplies $113
L. Dr Cash $135
Cr Accounts receivable $135
Explanation:
Preparation of the journal entries
a. Dr Cash $540
Cr Common stock $540
(Being To record issue of common stock)
b. Dr Cash $810
Cr Notes payable(ST) $810
(Being To record amount borrowed from relative)
c. Dr Equipment $981
Cr Cash $981
(Being To record purchase of 2 lawn movers at 432, proffessional trimmer at 117)
d. Dr Supplies $81
Cr Cash $81
(Being to record purchase of gasoline oil and trash bags)
e. Dr Advertising expense $153
Cr Account payable $153
(Being to record advertising flyer for formation of business on account)
f. Dr Cash $419
Dr Accounts receivable $216
($635-$419)
Cr Service revenue $635
(Being to record service revenue for first two weeks of operation)
g. Dr Wages expense $378
Cr Cash $378
(Being to record salaries expense for first two weeks)
h. Dr Supplies $59
CrCash $59
(Being to record purchase of gasoline oil and trash bags)
i. Dr Cash $338
Dr Accounts receivable $490
($828-$338)
Cr Service revenue $828
(Being to record service revenue for last two weeks of first month)
j. Dr wages expense $459
Cr Wages payable $459
K. Dr Supplies expense [($81+$59)-$27]$113
Cr Supplies $113
L. Dr Cash $135
Cr Accounts receivable $135
(Being to record payment received from customer)
