Answer Explanation:
Accounting equation:
Asset = Liabilities + Equity
1) 70,000 + 30,000 = 0 + 100,000
2) 70,000 + 30,000 = 280 + 100,000 - 280
3) 77,800 + 30,000 = 280 + 100,000 + 7,800 - 280
4) 78.800 + 30,000 = 1,280 + 100,000 + 7,800 - 280
<u>Journal entries:</u>
cash 70,000 debit
equipment 30,000 debit
Common Stock 100,000 credit
Landscaping Expense 280 debit
account payable 280 credit
cash 7,800 debit
service revenue 7,800 credit
cash 1,000 debit
unearned revenue 1,000 credit
<u>T-Accounts</u>
<u> Cash </u> <u> Equipment </u> <u>Landscaping Expense </u>
<u>Debit Credit</u> <u>Debit Credit</u> <u>Debit Credit</u>
70,000 30,000 280
7,800
1,000
78,800
<u>Account Payable</u> <u>Unearned Revenue</u> <u>Common Stock</u>
<u>Debit Credit</u> <u>Debit Credit</u> <u>Debit Credit</u>
280 1,000 100,000
<u>Service revenue</u>
<u>Debit Credit</u>
7,000
Note: I uused landscaping expense as there was no supplies account to pick from your choise.