Question

For each transaction, (1) analyze the transaction using the accounting equation, (2) record the transaction in journal entry form, and (3) post the entry using T-accounts to represent ledger accounts. 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); Common Stock (307); Dividends (319); Landscaping Revenue (403); Wages Expense (601), and Landscaping Expense (696).

1. On May 15, DeShawn Tyler opens a landscaping company called Elegant Lawns by investing $74,000 in cash along with equipment having a $34,000 value in exchange for common stock.
2. On May 21, Elegant Lawns purchases office supplies on credit for $360.
3. On May 25, Elegant Lawns receives $8,200 cash for performing landscaping services.
4. On May 30, Elegant Lawns receives $1,400 cash in advance of providing landscaping services to a customer.

Answer 1

	Cash	Supplies	Equipment	Accounts Payable	Unearned Revenue	Common Stock	Retained Earnings
a	$ 74,000		$      34,000			$   108,000
b		$          360		$            360
c	$     8,200						$    8,200
d	$     1,400				$           1,400

Account Titles	Debit	Credit
Cash	$      74,000
Equipment	$      34,000
Common Stock		$      108,000
Office Supplies	$            360
Accounts Payable		$              360
Cash	$        8,200
Service Revenue		$           8,200
Cash	$        1,400
Unearned Revenue		$           1,400