Instructions: The following transactions were completed in the month of March, 2
ID: 2465548 • Letter: I
Question
Instructions:
The following transactions were completed in the month of March, 20X3. Please use the appropriate accounts in the attached Chart of Accounts. Day 1 Khandan deposited $20,000 in a bank account in the name of the business. 1 Paid the rent for the 3 months, $2,100 1 Khandan invested her personal Hauling equipment, with a fair market value of $1,600 in the business. The equipment has a life expectancy of 5 years. 1 Purchased a used Truck on account from Jean Sales, for $2,160. The life expectancy of the trailer is 3 years. 1 Purchased a used Crane from Earth Equipment for $8,500, paying $4,000 in cash and placing the balance on account; the Crane has life expectancy of 4 years 10 Purchased Liability insurance for one year, $1,800 13 Sold landscaping services on account to Leah Corp., $1,225 13 Purchased supplies for $200, 40% was cash 14 Purchased supplies on account from Parra George, $2,500 15 Sold Landscaping services on account to Gloria Inc, $4,845 17 Received and paid the bill from Tonya Inc. for gas and oil for the equipment, $84 19 Sold landscaping services for cash to Jonathan Company, $2,700 22 Paid on account - Jean Sales, a creditor, $600 24 Received on account from Leah Corp, a customer, $500 28 Sold landscaping services on account to Rayna Corp., $1,626 29 Received and paid the telephone bill, $184 29 Received the utilities bill, $200 30 Paid the salary of the employee, $3,200 31 Khandan withdrew cash for her personal use, $1,300Explanation / Answer
Working:
Income Statement: Sale of services Supplies Amount ($) Date Amount ($) Date Amount ($) Sales 10,396.00 13.00 1,225.00 13.00 200.00 Less: cost of goods old 2,700.00 15.00 4,845.00 14.00 2,500.00 Gross Profit 7,696.00 19.00 2,700.00 Less: other expenses: 28.00 1,626.00 Rent expense 700.00 Depreciation-Hauling equipment 26.67 10,396.00 2,700.00 Depreciation on Truck 60.00 Depreciationon crane 177.08 Insurance expense 150.00 Gas and oil 84.00 Telephone expense 184.00 Utilities expense 200.00 Salaries expense 3,200.00 4,781.75 Net income 2,914.25