During its first month of operation, the Flower Landscaping Corporation, which s

Question

During its first month of operation, the Flower Landscaping Corporation, which specializes in residential landscaping, completed the following transactions: March 1 Began business by making a deposit in a company bank account of $72,000, in exchange for 7,200 shares of $10 par value common stock. March 1 Paid the current month's rent, $4,500. March 1 Paid the premium on a one-year insurance policy, $3,300. March 7 Purchased supplies on account from Parkview Company, $900. March 10 Paid employee salaries, $2,200. March 14 Purchased equipment from Hammond Company, $9,000. Paid $1,500 down and the balance was placed on account.  Payments will be $375.00 per month for twenty months.  The first payment is due 4/1. Note:  Use Accounts Payable for the Balance Due. March 15 Received cash for landscaping revenue for the first half of March, $4,896. March 19 Made payment on account to Parkview Company, $450. March 31 Received cash for landscaping revenue for the last half of March, $5,304. March 31 Declared and paid cash dividend of $1,000. During its first month of operation, the Flower Landscaping Corporation, which specializes in residential landscaping, completed the following transactions: March 1 Began business by making a deposit in a company bank account of $72,000, in exchange for 7,200 shares of $10 par value common stock. March 1 Paid the current month's rent, $4,500. March 1 Paid the premium on a one-year insurance policy, $3,300. March 7 Purchased supplies on account from Parkview Company, $900. March 10 Paid employee salaries, $2,200. March 14 Purchased equipment from Hammond Company, $9,000. Paid $1,500 down and the balance was placed on account.  Payments will be $375.00 per month for twenty months.  The first payment is due 4/1. Note:  Use Accounts Payable for the Balance Due. March 15 Received cash for landscaping revenue for the first half of March, $4,896. March 19 Made payment on account to Parkview Company, $450. March 31 Received cash for landscaping revenue for the last half of March, $5,304. March 31 Declared and paid cash dividend of $1,000.

Explanation / Answer

General Journal Chart of Accounts: Account Title (Normal Balance)
Date Description(Account Name) Debit Credit
1-Mar Cash 72,000 Assets
1-Mar Common Stock 72,000 Cash (Debit)
1-Mar Cash Prepaid Insurance (Debit)
1-Mar Rent Expense 4,500 Supplies (Debit)
1-Mar Cash 4,500 Equipment (Debit)
1-Mar Prepaid Insurance 3,300 Accumulated Depreciation -Equipment (Credit)
1-Mar Cash 3,300
7-Mar Supplies 900 Liabilities
7-Mar Cash 900 Accounts Payable (Credit)
10-Mar Salaries Expense 2,200 Income Tax Payable (Credit)
10-Mar Cash 2,200
March 14 Equipment 9,000 Stockholders Equity
March 14 Cash 1,500 Common Stock (Credit)
March 14 Accounts Payable 7,500 Retained Earnings (Credit)
March 15 Landscaping Revenue 4,896 Dividends (Debit)
March 15 Cash 4,896
March 19 Made payment 450 Revenue
March 19 Cash 450 Landscaping Revenue (Credit)
March 31 landscaping revenue 5,304
March 31 Cash 5,304 Expenses
March 31 Dividends 1,000 Rent Expense (Debit)
March 31 Cash 1,000 Salaries Expense (Debit)
Insurance Expense (Debit)
Supplies Expense (Debit)
Depreciation Expense (Debit)
Income Tax Expense (Debit)

Clearing Account
Income Summary



103,550 103,550

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