FI504_Case_Study_1_The_Complete_Accounting_Cycle(1) - July...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
During its first month of operation, the Parkview Landscaping Corporation, which specializes in residential lan completed the following transactions: July 1 Began business by making a deposit in a company bank account of $24,000, in exchange for 4,800 shares of $5 par value common stock. July 1 Paid the premium on a one-year insurance policy, $2,400. July 1 Paid the current month's rent, $2,080. July 3 Purchased landscaping equipment from Brookwood Company, $8,800. Paid $1,200 down and the placed on account. Payments will be $400.00 per month for nineteen months. The first payment i Note: Use Accounts Payable for the Balance Due. July 8 Purchased landscaping supplies from Lakeside Company on credit, $780. July 12 Paid utility bill for July, $308. July 16 Received cash for landscaping revenue for the first half of July, $2,724.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: July 19 Made payment on account to Lakeside Company, $400. July 31 Received cash for landscaping revenue for the last half of July, $2,620. July 31 Declared and paid cash dividend of $1,600. Prepare journal entries to record the July transactions in the General Journal below. General Journal Date Description(Account Name) Debit Credit 1-Jul cash 24000 common stock 24000 1-Jul prepaid insurance 2400 cash 2400 1-Jul rent expense 2080 cash 2080 3-Jul landscaping equipment 8,800 cash 1200 accounts payable 7600 8-Jul landscaping supplies 780 accounts payable 780 12-Jul Utlility expense 308 cash 308 16-Jul cash 2724 lanscaping revenue 2724 19-Jul accounts payable 400...
View Full Document

This note was uploaded on 03/24/2012 for the course FINANCE FI504 taught by Professor Brown during the Spring '12 term at DeVry Chicago.

Ask a homework question - tutors are online