Question

The firm was organized and the initial stockholders invested cash of $780. The company borrowed $1,170 from a relative of one of the initial stockholders; a short-term note was signed. Two zero-turn lawn mowers costing $624 each and a professional trimmer costing $169 were purchased for cash. The original list price of each mower was $793, but a discount was received because the seller was having a sale. Gasoline, oil, and several packages of trash bags were purchased for cash of $117. Advertising flyers announcing the formation of the business and a newspaper ad were purchased. The cost of these items, $221, will be paid in 30 days. During the first two weeks of operations, 47 lawns were mowed. The total revenue for this work was $917; $605 was collected in cash, and the balance will be received within 30 days. Employees were paid $546 for their work during the first two weeks. Additional gasoline, oil, and trash bags costing $143 were purchased for cash. In the last two weeks of the first month, revenues totaled $1,196, of which $488 was collected. Employee wages for the last two weeks totaled $663; these will be paid during the first week of the next month. It was determined that at the end of the month the cost of the gasoline, oil, and trash bags still on hand was $39. Customers paid a total of $195 due from mowing services provided during the first two weeks. The revenue for these services was recognized in transaction f.

Answer 1

Answer:

Follows are the solution to this question:

Explanation:

                             Cardinal Moving Services Inc. in its Books

   Payment                  Common Journal               Dr.               Cr.

      1                            Currency Cash.                     $780        

                                    Joint Vesicles                                                 $780

                   (To Common Stock Record Problem)

     2                       Currency Cash.                            $1,170

                                 Paying notes                                                        $1,170

                     (Quantity borrowed from the relative to the record)

    3                        Material                                         $1,417

                             Currency Cash.                                                     $1,417

(to record buying of 2 mover lawns $624 each and 1 trimmer career $169)

   4                             Supplies                                    $117

                                   Currency Cash.                                                 $117  

(The buying of fuel, oil, and waste bags to Record)

  5                            Costs of ads                                $221    

                              Cashable Account                                                 $221            

(Advertising flyer for business training on behalf of To Record)

  6                              Currency Cash.                       $605    

                             Receivable Account                        $312

                                Income Service                                                       $917

(For the very first two weeks of operation, to report service revenue)

    7                             Spending on wages                   $546

                                     Currency Cash.                                                $546

          (For first two weeks, to report wage expenditure)

    8                             Supplies                                        $143

                             Currency Cash.                                                           $143

(The acquisition of gasoline, oil, and garbage bags for documentation purpose)

   9                                  Currency Cash.                         $488

                                        Receivable Account                  $708

                                          Income Service                                         $1,196

   (For the last 2 weeks of the first month, to report service revenue)

 10                                        Wages Cost                        $663

                                            Payable salaries                               $663

                  (For two weeks to report accrual wage expenses)

  11                                    Budget for supplies                    $221

                                                  Supplies                                 $221

                              (To record the cost of supplies)

  12                                          Currency Cash.                 $195

                                              Receivable Account                  $195

                           (The customer's payment to Record)

working                                    Delivery Costs

                                   Purchases for supplies [$117 + $143]   $260 

                                      Less: Hand supplies                          ($39)

                                  Expense of production                           $221