Using the chart of accounts provided below and the Excel template provided with

Question

Using the chart of accounts provided below and the Excel template provided with this assignment, record the transactions for the new assets purchased in June, 2014.

June   2          Purchased a storage location for lawn care equipment, paid $45,000 for a building on 1 acre. The land is appraised at $8,000. The building has an estimated life of 10 years with a $5,000 salvage value. Bill paid $2,000 down and financed the remaining purchase price with a 5% 5 year note.

June 4          Purchased a trailer to haul lawn care equipment for $2,300, estimated life is 5 years with no salvage value. Bill paid for the purchase in cash.

June 5          Purchased a gas powered trimmer for $1,200 and a commercial leaf-blower for 1,500. Bill estimates they will each have a two year life and no salvage value. Bill paid for both of these pieces of equipment on account.  

Explanation / Answer

Date Account Title and Explanation Debit Credit 04-06-2014 Building A/c 45,000.00 Land A/c 8,000.00      To Cash 2,000.00      To 5% note 51,000.00 (Being storage location for lawn care equipment purchased by paying partly in cash and balance through issue of 5 years 5% notes) 04-06-2014 Trailer A/c       2,300.00        To Cash A/c     2,300.00 (Being trailer purchase in cash) 05-06-2014 Gas powered trimmer     1,200.00 Leaf blower     1,500.00        To Bank     2,700.00 (Being amount paid for gas powered trimmer and leaf blower )

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