College Accounting: Chapter 3 Mastery Problem - Craig Fisher started a lawn service called Craig's
College Accounting Chapter 3 Mastery Problem Craig Fisher started a lawn service called Craig's Quick Cut to earn money over the summer months. Fisher has decided to use the following accounts for recording transactions: Assets Cash Accounts Receivable Mowing Equipment Lawn Tools Liabilities Accounts Payable Notes Payable Owner's Equity Craig Fisher, Capital Craig Fisher, Drawing Revenue Lawn Fees Expenses Rent Expense Wages Expense Telephone Expense Gas and Oil Expense Transportation Expense Transaction for the month of June are listed below. a. Invested cash in the business, $3,000. b. Bought mowing equipment for $1,000; paid $200 in cash and promised to pay the balance over the next four months. c. Paid garage rent for June, $50. d. Provided lawn services for customers on account, $520. e. Paid telephone bill, $30. f. Borrowed cash from the bank by signing a note payable, $500. g. Bought lawn tools, $480. h. Collected cash from customers for services performed on account in transaction (d), $400. i. Paid associates for lawn work done during the first half of the month, $350. j. Paid for gas and oil for the equipment, $60. k. Paid cash on account for the mowing equipment purchased in transaction (b), $200. l. Earned lawn fees of $1,320; $600 in cash and $720 on account. m. Paid associates for last half of month, $700. n. Reimbursed associates for costs incurred using their own vehicles for transportation, $150. o. Paid on note payable to bank, $100. p. Withdrew cash for personal use, $200. Required: 1. Enter the transaction for June in T accounts. Use the accounting equation as a guide for setting up the T accounts. 2. Foot and balance the T accounts where necessary. 3. Prepare a trial balance of the accounts as of June 30, 20--. 4. Prepare an income statement for the month ended June 30, 20--. 5. Prepare a statement of owner's equity for the month ended June 30, 20--. 6. Prepare a balance sheet as of June 30, 20--.
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