Managerial Accounting: E1-47 Lawlor Lawn Service, Inc., began operations
Managerial Accounting E1-47 Analyzing transactions Lawlor Lawn Service, Inc., began operations and completed the following transactions during May, 2012: May 1 Received $1,700 and issued 100 shares of common stock. Deposited this amount in bank account titled Lawlor Lawn Service, Inc. 3 Purchased on account a mower, $1,200, and weed whacker, $240. The equipment is expected to remain in service for four years. 5 Purchased $30 of gas. Wrote check #1 from the new bank account. 6 Performed lawn services for client on account, $150. 8 Purchased $150 of fertilizer that will be used on future jobs. Wrote check #2 from the new bank account. 17 Completed landscaping job for client, received cash $800. 31 Received $100 on account from May 6 sale. Requirement 1. Analyze the effects of Lawlor Lawn Service transactions on the accounting equation. Use the format of Exhibit 1-6, and include these headings: Cash, Accounts receivable, Lawn supplies, Equipment, Accounts payable, Common stock, and Retained earnings. In Chapter 2, we will account for these same transactions a different way—as the accounting is actually performed in practice.
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