During its first month of operation, the Parkview Landscaping Corporation, which

Question

During its first month of operation, the Parkview Landscaping Corporation, which specializes in residential landscaping, completed the following transactions: July 1 Began business by making a deposit in a company bank account of $24,000, in exchange for 4,800 shares of $5 par value common stock. July 1 Paid the premium on a one-year insurance policy, $2,400. July 1 Paid the current month's rent, $2,080. July 3 Purchased landscaping equipment from Brookwood Company, $8,800. Paid $1,200 down and the balance was placed on account.  Payments will be $400.00 per month for nineteen months.  The first payment is due 8/1. Note:  Use Accounts Payable for the Balance Due. July 8 Purchased landscaping supplies from Lakeside Company on credit, $780. July 12 Paid utility bill for July, $308. July 16 Cash landscaping revenue for the first half of July, $2,724. July 19 Made payment on account to Lakeside Company, $400. July 31 Cash landscaping revenue for the last half of July, $2,620. July 31 Declared and paid cash dividend of $1,600. Prepare journal entries to record the July transactions in the General Journal below. Use the following account names for journal entries. General Journal Chart of Accounts: Account Title (Normal Balance) Date Description(Account Name) Debit Credit         Assets         Cash (Debit)         Prepaid Insurance (Debit)         Landscaping Supplies (Debit)         Landscaping Equipment (Debit)         Accum Depr -Equipment (Credit)                 Liabilities         Accounts Payable (Credit)         Income Tax Payable (Credit)                 Stockholders Equity         Common Stock (Credit)         Retained Earnings (Credit)         Dividends (Debit)                 Revenue         Landscaping Revenue (Credit)                 Expenses         Rent Expense (Debit)         Utility Expense (Debit)         Insurance Expense (Debit)         Supplies Expense (Debit)         Depreciation Expense (Debit)         Income Tax Expense (Debit)                                                 0 0 Note:  Remember that Debits must equal Credits - All of your Journal Entries should balance.                    



Post the July journal entries to the following T-Accounts and compute ending balances.


Cash (111) Landscaping Revenue (411)










Prepaid Insurance (117) Rent Expense (511)






Landscaping Supplies (119) Utility Expense (512)






Landscaping Equipment (144) Insurance Expense (513)






Accum. Depr.-Equipment (145) Supplies Expense (514)







Accounts Payable (212) Depreciation Expense (515)






Income Taxes Payable (213) Income Taxes Expense (516)






Common Stock (311)






Retained Earnings (312)






Dividends (313)







use same data as the first question

Explanation / Answer

Dr

Cr

Cash a/c

Common stock

$24,000

Prepaid insurance

$2,400

Land scaping Revenue

$2,724

Prepaid rent

$2,080

Land scaping Revenue

$2,620.00

Land scaping equipment

$1,200

Utilities

$308

Land scaping supplies

$400

Dividends

$1,600

Balance C/d

$21,356

$29,344

$29,344

Landscaping revenue a/c

Cash

$2,724

Balance C/d

$5,344

Cash

$2,620

$5,344

$5,344

Prepaid insurance a/c

Cash

$2,400

Insurance

$200

Balance C/d

$2,200

$2,400

$2,400

Rent expense a/c

Cash

$2,080

Income statement

$2,080

$2,080

$2,080

Land scaping supplies a/c

Cash

$400

Supplies

$780

Balance c/d

$380

$780

$780

Utility expense a/c

Cash

$308

balance c/d

$308

$308

$308

Land scaping equipment a/c

Accounts payable

$7,600

Cash

$1,200

Balance c/d

$8,800

$8,800

$8,800

Insurance expense a/c

Prepaid insurance

$200

Income statement

$200

$200

$200

Supplies expense a/c

Land scaping supplies

$780

Income statement

$780

$780

$780

Common Stock a/c

Cash

$24,000

balance c/d

$24,000

$24,000

$24,000

Dividends a/c

Cash

$1,600

Income statement

$1,600

$1,600

$1,600

Income tax payable a/c

Income tax expense a/c

Depreciation expense a/c

Accumulated depreciation a/c

Date Particulars Debit Credit 1-Jul Bank $24,000      Common stock $24,000 1-Jul Prepaid insurance premium $2,400      Cash $2,400 1-Jul Rent expense $2,080       Cash $2,080 3-Jul Land scaping Equipment $8,800       Cash $1,200       Accounts payable $7,600 8-Jul Supplies $780      Lakeside company $780 12-Jul Utilities $308      Cash $308 16-Jul Cash $2,724       Revenue from landscaping $2,724 19-Jul Landscaping supplies $400       Cash $400 31-Jul Cash $2,620       Revenue from landscaping $2,620 31-Jul Dividends $1,600      Cash $1,600 31-Jul Depreciation       Accumulated depreciation 31-Jul Income tax expenses       Cash/income tax payable 31-Jul Insurance $200      Prepaid insurance $200

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