RECORDING BUSINESS TRANSACTIONSJims Lawn Care Solution

Assets = Liabilities +Accounts Lawn Accounts

Cash + Receivable + Supplies + Equipment = Payable +1 800 =

Bal. 800 = 2 1,000 = 1,000

Bal. 800 1,000 = 1,000 3 (50) 50 =

Bal. 750 50 1,000 = 1,000 4 700 =

Bal. 750 700 50 1,000 = 1,000 5 700 (700) =

Bal. 1,450 - 50 1,000 = 1,000 6 (1,000) = (1,000)

Bal. 450 - 50 1,000 = - 7 (150) =

Bal. 300 - 50 1,000 = - 8 420 =

Bal. 720 - 50 1,000 = - 9 (85) =

Bal. 635 - 50 1,000 = - 10 600 =

Bal. 635 600 50 1,000 = - 11 = 110

Bal. 635 600 50 1,000 = 110 12 (100) =

Bal. 535 600 50 1,000 = 110

Owner EquityJ. Hamilton,

Capital ($) Description 800 Investment 800

800

800 700 Revenue 1,500

1,500

1,500 (150) Adv. Exp. 1,350 420 Revenue 1,770 (85) Wage Exp. 1,685 600 Revenue 2,285 (110) Gas Exp. 2,175 (100) Withdrawal Steps: 2,075 a. Identify compents of Accounting equation affected. (Asset, Liability, capital, revenue, expense or withdrawal.

b. For each component affected part a., determine if it "increased" or "decreased".c. Assign dollar amount and record.

RECORDING BUSINESSTRANSACTIONSJim's Lawn Care1. Jim Hamilton began a lawn care business in May by depositing $800 in a business bank account.2. Purchased lawnmowers and other lawn equipment on account, $1,000. 3. Paid cash for supplies, $50.4. Performed lawn care services for credit customers and billed them $700.5. Received $700 cash from the customers billed in #4.6. Paid $1,000 cash for the lawn equipment purchased in #2.7. Paid for an advertisement in a local newspaper, $150.8. Performed lawn care services for cash customers and immediately received $420.9. Paid wages to a part-time assistant, $85.10. Performed lawn care services for credit customers and billed them $600.11. Received an invoice from Gas-n-Go for gasoline purchased on account during May, $110. The invoice will not be paid until next month.12. At the end of May, Jim withdrew $100 from the business for personal use.

a. Identify compents of Accounting equation affected. (Asset, Liability, capital, revenue, expense or withdrawal.b. For each component affected part a., determine if it "increased" or "decreased".

RECORDING BUSINESSTRANSACTIONSJim's Lawn Care1. Jim Hamilton began a lawn care business in May by depositing $800 in a business bank account.2. Purchased lawnmowers and other lawn equipment on account, $1,000. 3. Paid cash for supplies, $50.4. Performed lawn care services for credit customers and billed them $700.5. Received $700 cash from the customers billed in #4.6. Paid $1,000 cash for the lawn equipment purchased in #2.7. Paid for an advertisement in a local newspaper, $150.8. Performed lawn care services for cash customers and immediately received $420.9. Paid wages to a part-time assistant, $85.10. Performed lawn care services for credit customers and billed them $600.11. Received an invoice from Gas-n-Go for gasoline purchased on account during May, $110. The invoice will not be paid until next month.12. At the end of May, Jim withdrew $100 from the business for personal use.

Jim's Lawn CareUnadjusted Trail BalanceMay 31, 20xx

Dr CrCash 535 Accounts Receivable 600 Supplies 50 Lawn Equipment 1,000 Accounts Payable 110 Jim Hamilton, Capital 800 Jim Hamilton, Drawing 100 Fees Earned 1,720 Advertising Expense 150 Gasoline Expense 110 Wages Expense 85

Total 2,630 2,630

GENERAL LEDGER - Income Statement accounts

Fees EarnedPost

Date Item Ref. Dr. Cr.

4 J1 700 8 J1 420

10 J1 600

Advertising ExpensePost

Date Item Ref. Dr. Cr.

7 J1 150

Gasoline ExpensePost

Date Item Ref. Dr. Cr.

11 J1 110

Wages ExpensePost

Date Item Ref. Dr. Cr.

9 J1 85

GENERAL LEDGER - Income Statement accounts

41

BalanceDr. Cr.

700 1,120 1,720

50

BalanceDr. Cr.

150

51

BalanceDr. Cr.

110

52

Balance

Dr. Cr.

85

GENERAL LEDGER - Balance Sheet accounts

CashPost

Date Item Ref. Dr. Cr.

5/1 Balance 1 J1 800 3 J1 50 5 J1 700 6 J1 1,000 7 J1 150 8 J1 420 9 J1 85

12 J1 100

Accounts ReceivablePost

Date Item Ref. Dr. Cr.

5/1 Balance 4 J1 700 5 J1 700

10 J1 600

SuppliesPost

Date Item Ref. Dr. Cr.

5/1 Balance 3 J1 50

Lawn EquipmentPost

Date Item Ref. Dr. Cr.

5/1 Balance 2 J1 1,000

Accounts PayablePost

Date Item Ref. Dr. Cr.

5/1 Balance 2 J1 1,000 6 J1 1,000

11 J1 110

Jim Hamilton, CapitalPost

Date Item Ref. Dr. Cr.

5/1 Balance 1 J1 800

Jim Hamilton, DrawingPost

Date Item Ref. Dr. Cr.

5/1 Balance 12 J1 100

GENERAL LEDGER - Balance Sheet accounts

11

BalanceDr. Cr.

- 800 750 1,450 450 300 720 635 535

12

BalanceDr. Cr.

- 700 - 600

14

BalanceDr. Cr.

- 50

17

BalanceDr. Cr.

- 1,000

21

BalanceDr. Cr.

- 1,000 - 110

31

BalanceDr. Cr.

- 800

32

BalanceDr. Cr.

- 100

General Journal Page 1Date Description (Account title) Post ref. Debit Credit TRANSACTIONS

1 Cash 11 800 Jim's Lawn Care Jim Hamilton, Capital 31 800

2 Lawn Equipment 17 1000 1. Jim Hamilton began a lawn care business in May by depositing $800 in a business bank account. Accounts Payable 21 1000 2. Purchased lawnmowers and other lawn equipment on account, $1,000.

3 Supplies 14 50 3. Paid cash for supplies, $50. Cash 11 50 4. Performed lawn care services for credit customers and billed them $700.

4 Acounts Receivable 12 700 5. Received $700 cash from the customers billed in #4. Fees Earned (Revenue) 41 700 6. Paid $1,000 cash for the lawn equipment purchased in #2.

5 Cash 11 700 7. Paid for an advertisement in a local newspaper, $150. Accounts Receivable 12 700 8. Performed lawn care services for cash customers and immediately received $420.

6 Accounts Payable 21 1000 9. Paid wages to a part-time assistant, $85. Cash 11 1000 10. Performed lawn care services for credit customers and billed them $600.

7 Adverstising Expense 50 150 11. Received an invoice from Gas-n-Go for gasoline purchased on account during May, $110. The invoice will not be paid until next month. Cash 11 150 12. At the end of May, Jim withdrew $100 from the business for personal use.

8 Cash 11 420 Fees Earned (Revenue) 41 420 Steps:

9 Wages Expense 52 85 a. Identify compents of Accounting equation affected. (Asset, Liability, capital, revenue, expense or withdrawal. Cash 11 85 b. For each component affected part a., determine if it "increased" or "decreased".

10 Accounts Receivable 12 600 c. Identify increae and decrease as debits or credits Fees Earned (Revenue) 41 600 d. Assign dollar amount and record.

11 Gasoline Expense 51 110 Accounts Payable 21 110

12 Jim Hamilton, Drawing 32 100 Cash 11 100

TRANSACTIONSJim's Lawn Care

1. Jim Hamilton began a lawn care business in May by depositing $800 in a business bank account.2. Purchased lawnmowers and other lawn equipment on account, $1,000. 3. Paid cash for supplies, $50.4. Performed lawn care services for credit customers and billed them $700.5. Received $700 cash from the customers billed in #4.6. Paid $1,000 cash for the lawn equipment purchased in #2.7. Paid for an advertisement in a local newspaper, $150.8. Performed lawn care services for cash customers and immediately received $420.9. Paid wages to a part-time assistant, $85.10. Performed lawn care services for credit customers and billed them $600.11. Received an invoice from Gas-n-Go for gasoline purchased on account during May, $110. The invoice will not be paid until next month.12. At the end of May, Jim withdrew $100 from the business for personal use.

a. Identify compents of Accounting equation affected. (Asset, Liability, capital, revenue, expense or withdrawal.b. For each component affected part a., determine if it "increased" or "decreased".c. Identify increae and decrease as debits or creditsd. Assign dollar amount and record.

11. Received an invoice from Gas-n-Go for gasoline purchased on account during May, $110. The invoice will not be paid until next month.

a. Identify compents of Accounting equation affected. (Asset, Liability, capital, revenue, expense or withdrawal.

CHART OF ACCOUNTSJim's Lawn Care

Transactions(Ch1)Sheet1GL Income Stmt(Ch2)GL Bal Sheet (Ch2)General Journal (Ch2)Chart of Accounts (Ch2)