2023 For the month of January Jim s Landscaping Company has the following transactions Borrowed 5 000 from | Assignments Online

For the month of January Jim’s Landscaping Company has the following transactions:

 

1. Borrowed $5,000 from First National Bank on a note due in two years.
2. Received $12,500 cash from investors and issued them stock.
3. Purchased a vehicle for $12,000, paying $8,000 cash and signing a note for the balance that is due in three years.
4. Purchased supplies costing $600 on account.
5. Purchased supplies costing $400 paying cash.
6. Cut three lawns totaling $500 and billed customers.
7. Cut one lawn and was paid $300.
8. Paid wages totaling $600.
9. Purchased gas costing $200 on credit. 
10. Paid for the gas purchased above.

 

 

Required:

 

1.  Prepare journal entries for the above transactions.  

2.  Post the above transactions to T Accounts.

3.  Prepare a Trial Balance.

 

 

 

2.  Joan’s dance studio had the following transactions during May.

 

1. Sold dance lessons totaling $5,000 to customers and was paid $3,000 in cash and the remainder on account.
2. Paid $800 in wages for May.
3. Received a utility bill for May totaling $600 that will be paid in June.
4. Received $1,000 deposit from customers in May for dance lessons to be conducted in June.

 

Required:

 

 

Prepare a cash basis and an accrual basis income statement.