B&L; Landscapes, Inc. Mini Practice Part 2 il Graham and Lorry Miller incorporat
ID: 1172305 • Letter: B
Question
B&L; Landscapes, Inc. Mini Practice Part 2 il Graham and Lorry Miller incorporated B&L; Landscapes, Inc, on July 1, 2016. The business consists of lawn care and sprinkler system installations. In addition they also sell two types of fertilizer B? and Larry are concerned about ensuring a teady supply of high-quality PVC pipe for the spriniker installations jobs they do and have come up with a plan to issue bonds to several cf their family members. These funds will enable them to acquire a significant portion of the stock of local PVC manufacturer At the end of July. 2017, the company has the folowing adjusted trial bolance B&L; Landscopes, Inc Trial Bolance uly 31, 2017 5 47.750 Cash Accounts Receivable Alowonce for Doubtful Accounts Prepoid insuronce Inventory Land 79.000 35.000 37.600 Accumulated Depreclotion- Building 11.500 7,000 17 300 Accounts Payable Prefermed Stock Common stock Relained Earnings Totol Not included in the adjusted trial balance are the following transactions that occur on July 31, 2017. 1. 8&L; Landscapes, Inc. issued $50,000 worth of 5% 10 year bonds at face value 2-8&L; Landscapes, Inc. purchased 30% of the outstanding common stock of Crestine Poe. Inc, for $70,000Explanation / Answer
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Journal Entries 1 Cash A/c Dr 50000 To 5% Bonds Payable A/c 50000 (Being 5% bonds issued at face value for 10 years) 2 Investment in Crestine Pipe,. Inc A/c Dr 70000 To Cash A/c 70000 (Being 30% common stock purchased in Crestine Pipe Inc)Related Questions
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