Question

BA 211 Fundamentals of Financial Accounting

Project #1 – Financial Statements make this into excel spread sheets

Requirements

Use the following transaction descriptions to compose the following items:

●Journal entries for all transactions through the end of year (Dec. 31)

●End of year unadjusted trial balance

●Adjusting journal entries for end of year adjusting transactions

●End of year adjusted trial balance

●Income Statement

●Statement of Retained Earnings

●Balance Sheet

Transactions:

1.Dec. 1

– a new company is formed called “Lawn Darter, Inc.” $10,000 cash is contributed to the

start-up in exchange for common stock.

2.Dec. 1

– $1,500 was paid for 3 months’ rent in advance.

3.Dec. 1

– a $2,400 riding lawn mower was purchased in cash. This piece of equipment was

determined to have a 2 year (24 month) usable lifespan.

4.Dec. 8

– $400 of supplies were purchased on account and paid in cash 30 days later.

5.Dec. 10

– lawn service job was performed and payment was $1,250 in cash

6.Dec. 12

– a customer paid $1,400 in cash for lawn service to be performed Jan. 10

7.Dec. 15

– lawn service job was performed and payment was $1,100 in cash

8.Dec. 17

– lawn service job was performed and payment was $750 on account, paid in cash 30 days

later.

9.Dec. 20

– lawn service job was performed and payment was $1,800 in cash

10.Jan. 1

– an inventory was done and it was determined $150 of supplies were used in Dec.

11.Jan. 5

– a $200 dividend for the prior year was paid in cash

12.Jan. 5

– $1,700 in employee wages for Dec. were paid in cash

13.Jan. 10

– lawn service job was performed per previous agreement

14.Mar. 1

– $450 of income taxes were due for the prior yea

Answer 1