Question

For each transaction:

Answer 1

Answer:

I prepared an excel spreadsheet to show how these transactions affect the accounting equation:

a. On May 15, DeShawn Tyler opens a landscaping company called Elegant Lawns by investing $75,000 in cash along with equipment having a $35,000 value.

Dr Cash (101) 75,000

Dr Equipment (167) 35,000

    Cr D. Tyler, Capital (301) 110,000

b. On May 21, Elegant Lawns purchases office supplies on credit for $380.

Dr Office Supplies (124) 380

    Cr Accounts Payable (201) 380

c. On May 25, Elegant Lawns receives $8,300 cash for performing landscaping services.

Dr Cash (101) 8,300

    Cr Landscaping Revenue (403) 8,300

d. On May 30, Elegant Lawns receives $1,500 cash in advance of providing landscaping services to a customer.

Dr Cash (101) 1,500

    Cr Unearned Landscaping Revenue (236) 1,500

Cash (101)                            Equipment (167)

debit         credit                 debit         credit

75,000                                35,000

8,300

1,500                    

84,800

Office Supplies (124)          Accounts Payable (201)

debit         credit                 debit         credit

380                                                       380

Landscaping Revenue (403)  Unearned Landscaping Revenue (236)

debit         credit                      debit         credit

                 8,300                                       1,500

D. Tyler, Capital (301)

debit         credit  

                110,000

Download pdf