Question

Prepare the Unadjusted Trial Balance

April 1, 2016		The stockholders purchase 7,500 shares of $10 par value stock. Total cash received is $75,000.
April 1, 2016		The company took a $30,000 business loan from a local bank. The loan is
		"interest only" loan for three years at a fixed rate of 10%. A ballon payment of the
		principal will be due in 3 years. The montly interest payment is due by the 10th
		of the following month.
April 1, 2016		Management rents a combination office and garage facility for $1,000 per month and pays
April 1, 2016		Purchased a truck valued at $45,000 with a $15,000 down payment and a 4-year $30,000 note payable
April 1, 2016		Purchased used equipment and trailers for $25,000 cash. The equipment and trailers have a 5-year useful life
April 2, 2016		Purchased on account Lawn & Garden Supplies in the amount of $6,000 from Wintergreen Garden Center.
April 4, 2016		Dorsey contracted with two local businesses, Preston Hill B & B and Grace's Diner to provide monthly llandscaping service at a rate
		of $650 per month. Dorsey Landscape will bill the businesses at the end of each month.
April 6, 2016		Purchased $500 of office supplies on account from ABC Office Supply.
April 8, 2016		Paid invoice from Insurance company for 4 months of coverage beginning April 1, 2015
April 10, 2016		Receipts of cash from landscaping services in the amount of $5,200 were deposited to bank.
April 14, 2016		Paid 1/2 of amount owed to Wintergreen Garden Center.
April 16, 2016		Paid $1,200 in wage expense for the period April 1 - April 15, 2015.
Aprl 19, 2016		Paid ABC Office Supply invoice for purchases on April 6, 2016.
April 20, 2016		Received $7,500 in cash and checks for landscaping services rendered.
April 24, 2016		Returned $500 worth of lawn and garden supplies to Wintergreen Garden Center and received
		credit on account.
April 25, 2016		Received $1,000 advance deposit from customer for landscaping work to be stared in May 2016.
April 28, 2016		Paid remaining balance owed to Wintergreen Garden Center.
April 30, 2016		Truck Payment # 1 - Total $690.88 (Principal = $565.88; Interest = $125.00)
April 30, 2016		Paid $1,400 in wages expense for the period April 16 - April 30, 2016.
April 30, 2016		Pay credit card in full with the following charges incurred in April 2016: Gasoline - $625; Equipment
April 30, 2016		Sent invoices to Grace's Diner and Preston Hill B & B for monthly lawn service.
April 30, 2016		Paid dividends to shareholders in the amount of $500.

Answer 1

Journal Entries

Date	Account Name	Debit	Credit
April 1	Cash	75,000
	Equity Shares		75,000
1	Cash	30,000
	Bank loan		30,000
1	Rent Expense	1,000
	Cash		1,000
1	Truck	45,000
	Cash		15,000
	Notes Payable		30,000
1	Equipments and Trailers	25,000
	Cash		25,000
2	Lawn and Garden Supplies	6,000
	Accounts Payable		6,000
6	Office Supplies	500
	Accounts Payable		500
14	Accounts Payable	3,000
	Cash		3,000
16	Wage Expense	1,200
	Cash		1,200
19	Accounts Payable	500
	Cash		500
20	Cash	7,500
	Landscaping Revenue		7,500
24	Accounts Payable	500
	Supplies		500
25	Cash	1,000
	Unearned Revenue		1,000
28	Accounts Payable	2,500
	Cash		2,500
30	Interest Expense	125
	Notes Payable	565.88
	Cash		690.88
30	Wages Expense	1,400
	Cash		1,400
30	Gasoline	625
	Cash		625
30	Dividends	500
	Cash		500

Unadjusted Trial Balance

Particulars	Debit	Credit
Cash	61,584.12
Accounts Payable	0
Equity Shares		75,000
Bank loan		30,000
Rent Expense	1,000
Truck	45,000
Notes Payable		29,434.12
Equipments and Trailers	25,000
Lawn and Garden Supplies	6,000
Office Supplies	500
Wage Expense	2,600
Landscaping Revenue		7,500
Unearned Revenue		1,000
Interest Expense	125
Gasoline	625
Dividends	500
Grand Total	142,934.12	142,934.12