Complete this question by entering your answers in the tabs below.
Analyzed
For each of the above transaction, analyze the transaction using the accounting equation. (Enter total amounts only.)
Assets = Liabilities + Equity
= + Cash 101 Unearned Lands Reve. 236
= + Accounts receivable 106 D. Tyler, Capital 301
= + Off. Supplies 124 D. Tyler, Withdrawals 302
Trucks 153 Landscaping Revenue 403
Equipment 167 Wadges Ezxpense 601
Acc. Payable 201 Landscaping Revenue 696
General Journal
For each of the above transaction, record the transaction in journal entry form. Use the following (partial) chart of accounts—account numbers in parentheses:
Cash (101); Accounts Receivable (106); Office Supplies (124); Trucks (153); Equipment (167); Accounts Payable (201); Unearned Landscaping Revenue (236);
D. Tyler, Capital (301); D. Tyler, Withdrawals (302); Landscaping Revenue (403); Wages Expense (601), and Landscaping Expense (696).
Journal entry worksheet
Date Gneral Journal Debit Credit
a. On May 15, DeShawn Tyler opens a landscaping company called
Elegant Lawns by investing $73,000 in cash along with equipment having a $33,000 value.
b. On May 21, Elegant Lawns purchases office supplies on credit for $340.
c. On May 25, Elegant Lawns receives $8,100 cash for performing landscaping services.
d. On May 30, Elegant Lawns receives $1,300 cash in advance of providing landscaping services to a customer.
Processing Transactions
Double-entry accounting is useful in analyzing and processing transactions. Analysis of each transaction follows these four steps. Cash 101 Unearned Lands Reve. 236
Accounts receivable 106 D. Tyler, Capital 301
Step 1 Identify transactions and source documents. Off. Supplies 124 D. Tyler, Withdrawals 302
Step 2 Analyze the transaction using the accounting equation. Trucks 153 Landscaping Revenue 403
Step 3 Record the journal entry. Equipment 167 Wadges Ezxpense 601
Step 4 Post the entry (for simplicity, we use T-accounts as ledger accounts). Acc. Payable 201 Landscaping Revenue 696
Processing Transactions 1
1. Receive Investment by Owner
1 Identify: On May 15, DeShawn Tyler opens a landscaping company called Cash 101
Elegant Lawns by investing $73,000 in cash along with equipment having a $33,000 value. (1) 73,000
4. Post
2. Analyze Assets = Liabilities + Equity
Equipment 167
DeShawn Tyler Capital
Cash Equipment (1) 33,000 73,000
73,000 +33,000 = 0 + +106,000 33,000
106,000
3. Record Date Acccount Titles and Explanation PR Debit Credit DeShawn Tyler 301
(1) Cash 101 73,000 (1) 106,000
Equipment 167 33,000
DeShawn Tyler Capital 301 106,000
2. Purchase Supplies on Credit
1 Identify: On May 21, Elegant Lawns purchases office supplies on credit for $340.
4. Post
2. Analyze Assets = Liabilities + Equity Supplies 124
Supplies Acc.Payable (2) 340
+340 = +340 + 0
3. Record Date Acccount Titles and Explanation PR Debit Credit Acounts Payable 201
(2) Supplies 124 340 (2) 340
Accounts Payable 201 340
3. Received Cash
1 Identify: On May 25, Elegant Lawns receives $8,100 cash for performing landscaping services.
4. Post
2. Analyze Assets = Liabilities + Equity Cash 101
(1) 73,000
Performing Land. Serv
Cash (3) 8,100
+8,100 = 0 + +8,100
3. Record Date Acccount Titles and Explanation PR Debit Credit Landscaping Revenue 403
(1) Cash 101 8,100 (3) 8,100
Landscaping Revenue 403 8,100
4. Received Cash in Advance
1 Identify: On May 30, Elegant Lawns receives $1,300 cash in advance of providing landscaping services to a customer.
4. Post
2. Analyze Assets = Liabilities + Equity Cash 101
(1) 106,000
Cash Unearned Revenue (3) 8,100
+1,300 = +1,300 + 0 (4) 1,300
3. Record Date Acccount Titles and Explanation PR Debit Credit Unearned Revenue 236
(1) Cash 101 1,300 4 1,300
Unearn Revenue 236 1,300
General Ledger
Assets = Liabilities + Equity
Cash 101 Acounts Payable 201 De Sahwn Tyler Capital 301
(1) 73,000 (2) 340 (1) 106,000
(3) 8,100 Balance 340
(4) 1,300
Unearned Land. Reve. 236 C. Taylor, Withdrawals 302
4 1,300
Landscape Revenue 403
(3) 8,100
Balance 82,400
Balance 8,100
Accounts Receivable 106 Rental Revenue 406
Balance 0
Salarie Expense 622
Supplies 124
(2) 340 Balance 0
Rent Expense 640
Balance 340
Utilities Expense 690
Prepaid Insurance 128
Accounts in this white area on the income
statement
Equipment 167
1 33,000
$ 115,740 = $ 1,640 + $ 114,100
$ 115,740
