Craig Fisher started a lawn service called Craig's Quick Cut to earn money over the summer months. 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. () 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. (o) Paid on note payable to bank, $100. (p) Withdrew cash for personal use, $200.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Craig's Quick Cut
Balance Sheet
(Label)
1
Assets
3
7
Liabilities
10
11
Owner's Equity
12
13
61
8
4.
Transcribed Image Text:Craig's Quick Cut Balance Sheet (Label) 1 Assets 3 7 Liabilities 10 11 Owner's Equity 12 13 61 8 4.
Craig Fisher started a lawn service called Craig's Quick Cut to earn money over the summer months.
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.
(i) 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:
Transcribed Image Text:Craig Fisher started a lawn service called Craig's Quick Cut to earn money over the summer months. 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. (i) 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:
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