[morjorie24]

REQUIREMENT #1:
During its first month of operation, the Flower Landscaping Corporation, which specializes in residential landscaping,
completed the following transactions:

March 1 Began business by making a deposit in a company bank account of $72,000, in exchange
for 7,200 shares of $10 par value common stock.

March 1 Paid the current month's rent, $4,500.

March 1 Paid the premium on a one-year insurance policy, $3,300.

March 7 Purchased supplies on account from Parkview Company, $900.

March 10 Paid employee salaries, $2,200.

March 14 Purchased equipment from Hammond Company, $9,000. Paid $1,500 down and the balance was
placed on account. Payments will be $375.00 per month for twenty months. The first payment is due 4/1.
Note: Use Accounts Payable for the Balance Due.

March 15 Received cash for landscaping revenue for the first half of March, $4,896.

March 19 Made payment on account to Parkview Company, $450.

March 31 Received cash for landscaping revenue for the last half of March, $5,304.

March 31 Declared and paid cash dividend of $1,000.


Prepare journal entries to record the March transactions in the General Journal below. Use the following account names for journal entries.

General Journal Chart of Accounts: Account Title (Normal Balance)
Date Description(Account Name) Debit Credit
1-Mar Cash 72,000 Assets
1-Mar Common Stock 72,000 Cash (Debit)
1-Mar Cash Prepaid Insurance (Debit)
1-Mar Rent Expense 4,500 Supplies (Debit)
1-Mar Cash 4,500 Equipment (Debit)
1-Mar Prepaid Insurance 3,300 Accumulated Depreciation -Equipment (Credit)
1-Mar Cash 3,300
7-Mar Supplies 900 Liabilities
7-Mar Cash 900 Accounts Payable (Credit)
10-Mar Salaries Expense 2,200 Income Tax Payable (Credit)
10-Mar Cash 2,200
March 14 Equipment 9,000 Stockholders Equity
March 14 Cash 1,500 Common Stock (Credit)
March 14 Accounts Payable 7,500 Retained Earnings (Credit)
March 15 Landscaping Revenue 4,896 Dividends (Debit)
March 15 Cash 4,896
March 19 Made payment 450 Revenue
March 19 Cash 450 Landscaping Revenue (Credit)
March 31 landscaping revenue 5,304
March 31 Cash 5,304 Expenses
March 31 Dividends 1,000 Rent Expense (Debit)
March 31 Cash 1,000 Salaries Expense (Debit)
Insurance Expense (Debit)
Supplies Expense (Debit)
Depreciation Expense (Debit)
Income Tax Expense (Debit)

Clearing Account
Income Summary



103,550 103,550

Note: Remember that Debits must equal Credits - All of your Journal Entries should balance.

[sailajabadri]

Can u help me in making closing enteries for this Please... This is the financial statement

Requirement #7:

Prepare the financial statements for the Flower Landscaping Corporation as of March 31 in the space below.
You will only be preparing the income statement, statement of retained earnings, and the balance sheet.
The statement of cash flows is a required financial statement, but is not required for this project.

Flower Landscaping Corporation Flower Landscaping Corporation Flower Landscaping Corporation
Income Statement Statement of Retained Earnings Balance Sheet
For the Month Ending March 31 For the Month Ending March 31 March 31

Revenues: Retained Earnings, March 1 Assets:
Landscaping Revenue $10,200 Add: Net Income 1,855 Cash $69,250
Subtotal Prepaid Insurance 3,025
Expenses: Less: Dividends 1,000 Supplies 475
Rent Expense 4,500 Retained Earnings, March 31 $855 Equipment 9,000
Salaries Expense 2,200 Less: Accum. Depr. 150 8,850
Insurance Expense 275 Total Assets 81,600
Supplies Expense 425
Depreciation Expense 150 Liabilities:
Income Tax Expense 795 Accounts Payable 7,950
Total Expenses (-) 8,345 Income Tax Payable 795
Total Liabilities 8,745
Net Income $1,855 Stockholders' Equity:
Common Stock 72,000
Retained Earnings 855
Total Stockholders' Equity 72,855
Total Liabilities and
Stockholders' Equity $81,600

[pready]

This is a continuation of a problem with adjusting entries. Once you have your adjusted trial balance you will prepare your financial statements. After your financial statements you need to close out the income statement accounts to the income summary account, then close out your income summary account to retained earnings(on the balance sheet), then close out the cash dividends to retained earnings, finally you need to prepare a post-closing balance sheet.

Note: Use a Worksheet for this whole problem. I have attached a Worksheet that has been completed up to the Adjusted Trial Balance and have included the other columns you will need to finish this problem.