The trail balance sheet of Moc\'s Mowing. Inc is dated August 31.2017 Liabilitie

Question

The trail balance sheet of Moc's Mowing. Inc is dated August 31.2017 Liabilities Assets Cash Account Receivable Supplies Inventory Total current assts Cars buildin furniture Account Payable Notes payable 5,000 400 6000 2.500 ary pavable Unearned Revenue 2,000 4000 14,900 Total Liabilities 13.500 7.300 1500 2500 Shareholder's Equity Common Stocks Retained Earnin Total owner's equity 6.700 6.200 Total fixed asset 11.500 12,900 26,400 Total Assets 26.400Total Liabilities and Equity During the month of September, the business incurrei the following transactions: . Deposited $5,000 cash in the business's bank account. The company received the cash and issued common stocks. 2 3. 4. 5. The company purchased a car for $1,750 on account from Melton Supply The company bought equipment, paying cash, 1,750 The company purchased office supplies for $1000 cash. The company provided services to the Walker Company for $1,800 on account. 6· The company paid $500 to Melton Office Supply 7· The company borrowed a short-term debt (notes payable) from the bank. S20.000 8. The company received $1,000 in cash for services provided to a new customer 9. Shortly after opening the business, the company paid the month's rent of S650. 101% of the inventory has been expired (bad goods expense). 1 1· The company paid $100 cash to repair car 12. The company paid $450 cash in salary 13. Bought computer software from Moss Computer center, $740, paying $240 in cash and placing the balance on account 4. The company received $1,100 cash from Walker Company 15. The owner purchased a car for his personal usage by $14,000 cash. 16. The company sold 2% of its furniture for cash. 17. The company received and paid a bill from newspaper advertising from City News, $200 18. Declared and paid dividends of S600. 19, Collecting 70% of accounts receivable. 20. The company paid 35% of its accounts payable. 21. Supplies on hand at month-end, $4000 22. Salary owed but not paid yet S1000 23. $2000 out of the unearned service revenue was earned during September. 24. The bookkeeper recorded a collection from accounts receivable of $100 as $10 Required: Record theses business transactions in Journal entry, and create the financial statements (Income statement (2.5% Income tax)

Explanation / Answer

Journal

Income Statement

Accounts Receivables Date Particulars Debit Credit Balance Opening Balance $      400.00 $     400.00 5 Sales $ 1,800.00 $ 2,200.00 14 cash $    1,100.00 $ 1,100.00 19 Cash (70% of 1100) $       770.00 $     330.00 24 Cash $          90.00 $     240.00

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