[gabishop290898]

1/1 Joe Jones started a new business called Joe’s Lawn Service. Inc. He issued 60,000 shares of stock, par $1, for $60,000. The $60,000 was deposited in a bank account.

1/2 Purchased a truck for $6,000, no salvage value, useful life 5 years, for cash.

1 / 2 Purchased a 3 year insurance policy for $3,60000 cash.

1 / 3 Purchased land $10,000; paid $ 5,000 down, gave a note payable for the balance

1 / 15 Signed a contract to perform landscaping for $ 36,000 . The job will take 1 ½ months and we are paid at the beginning of the job.

1 / 15 Signed a contract to perform landscaping for $60,000. The job will take 3 months and we are paid at the end of the job.

1/15 Purchased a computer for $ 3,600, no salvage value, life 3 years.

1 / 20 Purchased office supplies for $ 2,000 on account

Additional Information: On 1/31, owed $700 wages and office supplies on hand totaled
$ 1,600.

[pready]

1/1 Debit Cash for 60,000
Credit Common Stock for 60,000

1/2 Debit PP&E - Vehicle for 6,000
Credit Cash for 6,000

1/2 Debit PrePaid Insurance for 3,600
Credit cash for 3,600

1/3 Debit Land for 10,000
Credit Cash for 5,000
Credit Notes Payable for 5,000

1/15 If cash is received then:
Debit Cash for 36,000
Credit Unearned Service Revenue for 36,000

If Cash not Received and Work has not started then no Journal Entry Required.

1/15 For payment when work completed then no journal entry required until work is completed

1/15 Debit PP&E - Computer for 3,600
Credit Cash for 3,600

1/20 Debit Office Supplies for 2,000
Credit Accounts Payable for 2,000

1/31 Debit Wage Expense for 700
Ctredit Wages Payable for 700

1/31 Debit Office Supply Expense for 400
Credit Office Supplies for 400