Assets Revenue Cash Lawn Fees Accounts Receivable Expenses Rent Expense Wages Expense Phone Expense Gas and Oil Expense Transportation Expense Mowing Equipment Lawn Tools Liabilities Accounts Payable Notes Payable Owner's Equity Craig Fisher, Capital Craig Fisher, Drawing

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Craig Fisher started a lawn service called Craig's Quick Cut to earn
money over the summer months. Fisher has decided to use the following
accounts for recording transactions:

Transactions for the month of June are listed below.
(a) Invested cash in the business, $3,000.
(b) Bought mowing equipment for $1,000: paid $200 in cash and
promised to pay the balance over the next four months.
(c) Paid garage rent for June, $50.
(d) Provided lawn services for customers on account, $520.
(e) Paid phone bill, $30.
(f) Borrowed cash from the bank by signing a note payable, $500.
(g) Bought lawn tools, $480.
(h) Collected cash from customers for services performed on
account in transaction (d), $400.
(i) Paid associates for lawn work done during the first half of the
month, $350.
(j) Paid for gas and oil for the equipment, $60.

(k) Paid cash on account for the mowing equipment purchased in
transaction (b), $200.
(1) Earned lawn fees of $1,320: $600 in cash and $720 on account.
(m) Paid associates for last half of month, $700.
(n) Reimbursed associates for costs incurred using their own
vehicles for transportation, $150.
(0) Paid on note payable to bank, $100.
(p) Withdrew cash for personal use, $200.
REQUIRED
1. Enter the transactions for June in T accounts. Use the accounting
equation as a guide for setting up the T accounts.
2. Foot and balance the T accounts where necessary.
3. Prepare a trial balance of the accounts as of June 30, 20--.
4. Prepare an income statement for the month ended June 30, 20--.
5. Prepare a statement of owner's equity for the month ended June
30, 20-
6. Prepare a balance sheet as of June 30, 20--.

REQUIRED
1. Enter the transactions in T accounts, identifying each
transaction with its corresponding letter.
2. Foot and balance the accounts where necessary.
3. Prepare a trial balance as of August 31, 20---

Assets
Revenue
Cash
Lawn Fees
Accounts Receivable
Expenses
Rent Expense
Wages Expense
Phone Expense
Gas and Oil Expense
Transportation Expense
Mowing Equipment
Lawn Tools
Liabilities
Accounts Payable
Notes Payable
Owner's Equity
Craig Fisher, Capital
Craig Fisher, Drawing
Transcribed Image Text:Assets Revenue Cash Lawn Fees Accounts Receivable Expenses Rent Expense Wages Expense Phone Expense Gas and Oil Expense Transportation Expense Mowing Equipment Lawn Tools Liabilities Accounts Payable Notes Payable Owner's Equity Craig Fisher, Capital Craig Fisher, Drawing
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