B&L; Landscapes, Inc. Mini Practice Part 2 Bil Graham and Lorry Miller incorpora

Question

B&L; Landscapes, Inc. Mini Practice Part 2 Bil Graham and Lorry Miller incorporated B&L; Landscapes, Inc, on July 1, 2016. The business consists of lawn care and sprinkler system instalations In addition, they also sell two types of fertilizer Bil and Larry are concerned obout ensuring a steady supply of high-quality PVC pipe for the sprinker 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 following adjusted trial balance: B&L; Landscopes, Inc Trial Bolance uly 31, 2017 47.750 Cash Accounts Receivable Alowonce for Doubtful Accounts Prepoid insurance 9.000 35.000 37,600 Land Accumulated Depreclation- Building Equipment - Equipment Accounts Payable 11.500 Prefemed Stock Common Stock Retained Earnings Totol 7.000 100 17 300 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 outstandng common stock of Crestine Poe. Inc, for $70,000

Explanation / Answer

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Note: Kindly confirm the exact account titles per the chart of accounts since the same is not provided with the question.

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GENERAL JOURNAL Page 3 Date Description Post. Ref. Debit Credit Jul. 31, 2017 Cash 50000.00 Bonds payable 50000.00 (To record the issuance of bonds) Jul. 31, 2017 Investment in Crestline Pipe, Inc. 70000.00 Cash 70000.00 (To record purchase of investment)

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