The Iollowing are the transactions relating to the formation of Cardinal Mowing Seniices. Inc.. and its first month 01 operations. a. The firm was organized and the initial stockholders invested fish of $781]. The company borrowed $1,170 Irom a relative of one oithe initial stockholders: a short-term note was signed. Two zero-tum lawn mowers costing $624 each and a professional trimmer costing $169 were purchased for cash. The original list price of each mower was $793. but a d‘scount was received because the seller
was having a sale. Gasoline. oil. and several packages ol trash bags were purchased for cash oi $117. Advertising flyers announcing the formation of the business and a rewspaper ad were purchased. The cost ol thme items. $221. will be paid in an days. During the first two weeks of operations. 47 lawre were mowed. The total revenue for this work was $917; $605 was collected in cash. and the balance will be received within 30 days.
Employem were paid $5461or their work during the first two weeks. Additional gasoline. oil. and trash bags costing $143 were purchased for cash. In the last two weeks of the first month. revenues totaled $1.196. ol which $488 was collected. Employee wages for the last two weeks totaled $6.; these will be paid during the first week of the next month. It was determined that at the end of the month the cost ol the gasoline. oil. and trash bags still on hand was $39. Customers paid atotal ol $195 due Irom mowing services provided during the first two weeks. The revenue for these services was recognized in transaction I‘. b.
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I. Required: a. Record each transaction in the appropriate columns. {If an traneactlonfndjustment are not affecting the balance sheet category or Income statement, leave the cells blank. Enter decreases to account
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o b. Calculate the total assets. liabilities. and stockholders' equity at the end at the month and calwlate the amount 01 net income tor the month.

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Status NEW Posted 11 Jul 2017 09:07 AM My Price 20.00

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