50.1K

Verified Solution

Link Copied!

4/01/17	Alex contributed $10,000 cash; two computers with the fair valueof $2,500 and an old truck fully paid with the fair value of $9,600(remaining useful life of 4 years and SV of $2,000).
4/01/17	The same day, he bought a lawnmower machine for $5,000 puttingdown, $2,000 cash and the rest on Accounts  payable to bepaid by May 31, 2017.
4/01/17	Rented a small office building for operation and paid 3 months’rent in advance for $4,500 (to be recorded as Prepaid rent)
4/02/17	Contracted local advertising agency for a 3 months prepaidadvertising plan of $1,200.
4/02/17	Hired a receptionist/bookkeeper (Mary K) with a salary of $600per two weeks, (30 hours of work each week)
4/05/17	Alex has signed a 90 days note with the Local First VA bank for$10,000 and annual interest rate of %5. This loan requires Alex tosubmit the financial statements at the end of each month, startingApril 30.
4/05/17	Alex signed a contract with a large hotel to provide landscapingservices for period of April-September and collected 6,000 inadvance to be recorded evenly over the period.
4/15/17	Recorded and paid salary to Mary K for two weeks.
4/15/17	In response to first 2 residential calls for service, Alexcompleted the lawn services and customers were billed to pay by4/25/17 for the amount of $120.
4/25/17	Alex worked on 3 customers’ lawns, who paid the fee for theservices in cash: $180.00
4/29/17	Recorded and paid salary to Mary K for another two weeks.
4/30/17	Alex withdrew $1,000 for personal expenses.
4/30/17	Mary K. recorded all necessary adjusting entries for the monthend.
4/30/17	Submitted a copy of the financial statements to the Bank incompliance with the Loan’s provisions.

Utilizing the Working paper provided to you on theMoodle, complete the following tasks in class:

1. You have been asked to make all necessary journalentries for the month of April.
2. Post JEs for to ledger accounts provided toyou.
3. Prepare necessary Adjusting entries and closing entriesfor the end of April.
4. Prepare an adjusted Trial balance
5. Prepare Income statement, Statement of Owner’s equity,and Balance sheet for Alex Shaman Lawnmower service.