Jim's Lawncare
Jim's Lawncare
Jim's Lawncare
Liabilities
+
Accounts
=
Payable +
=
=
=
1,000
=
1,000
=
=
1,000
=
=
1,000
=
=
1,000
=
(1,000)
=
=
=
=
=
=
=
=
=
=
110
=
110
=
=
110
Owner Equity
J. Hamilton,
Capital ($) Description
800 Investment
800
800
800
700 Revenue
1,500
1,500
1,500
(150) Adv. Exp.
1,350
420 Revenue
1,770
(85) Wage Exp.
1,685
600 Revenue
2,285
(110) Gas Exp.
2,175
(100) Withdrawal
2,075
RECORDING BUSINESS
TRANSACTIONS
Jim's Lawn Care
Steps:
a. Identify compents of Accounting equation affecte
b. For each component affected part a., determine i
c. Assign dollar amount and record.
G BUSINESS
IONS
Care
Cr
Cash
Accounts Receivable
Supplies
Lawn Equipment
Accounts Payable
Jim Hamilton, Capital
Jim Hamilton, Drawing
Fees Earned
Advertising Expense
Gasoline Expense
Wages Expense
535
600
50
1,000
Total
2,630
110
800
100
1,720
150
110
85
2,630
Item
4
8
10
Post
Ref.
Dr.
Cr.
700
420
600
J1
J1
J1
Advertising Expense
Date
Item
Post
Ref.
J1
Dr.
Cr.
150
Gasoline Expense
Date
Item
11
Post
Ref.
J1
Wages Expense
Post
Dr.
110
Cr.
Date
9
Item
Ref.
J1
Dr.
Cr.
85
atement accounts
41
Balance
Dr.
Cr.
700
1,120
1,720
50
Balance
Dr.
Cr.
150
51
Balance
Dr.
Cr.
110
52
Balance
Dr.
Cr.
85
Item
Balance
Post
Ref.
Dr.
Cr.
J1
J1
J1
J1
J1
J1
J1
J1
800
50
700
1,000
150
420
85
100
Accounts Receivable
Date
5/1
4
5
10
Item
Balance
Post
Ref.
Dr.
Cr.
J1
J1
J1
700
700
600
Supplies
Date
5/1
3
Item
Balance
Post
Ref.
Dr.
Cr.
J1
50
Lawn Equipment
Date
5/1
2
Item
Balance
Post
Ref.
Dr.
Cr.
J1
1,000
Accounts Payable
Date
5/1
2
6
11
Item
Balance
Post
Ref.
J1
J1
Dr.
Cr.
1,000
1,000
J1
110
Item
Post
Ref.
Dr.
Cr.
5/1
1
Balance
J1
800
Item
Balance
Post
Ref.
Dr.
J1
100
Cr.
Sheet accounts
11
Balance
Dr.
Cr.
800
750
1,450
450
300
720
635
535
12
Balance
Dr.
700
600
Cr.
14
Balance
Dr.
Cr.
50
17
Balance
Dr.
Cr.
1,000
21
Balance
Dr.
Cr.
1,000
110
31
Balance
Dr.
Cr.
800
32
Balance
Dr.
100
Cr.
General Journal
Date
Page 1
Post ref.
11
31
17
21
14
11
12
41
11
12
21
11
50
11
11
41
52
11
12
41
51
21
32
11
Debit
Credit
800
TRANSACTION
Jim's Lawn Car
800
1000
1000
50
2. Purchased lawnmow
50
700
700
700
700
1000
1000
150
150
420
Steps:
a. Identify compe
b. For each compo
c. Identify increae
d. Assign dollar am
420
85
85
600
600
110
110
100
100
TRANSACTIONS
im's Lawn Care
. Jim Hamilton began a lawn care business in May by depositing $800 in a business bank account.
. Performed lawn care services for credit customers and billed them $700.
. Performed lawn care services for cash customers and immediately received $420.
0. Performed lawn care services for credit customers and billed them $600.
1. Received an invoice from Gas-n-Go for gasoline purchased on account during May, $110. The invoice will not be paid u
2. At the end of May, Jim withdrew $100 from the business for personal use.
. Identify compents of Accounting equation affected. (Asset, Liability, capital, revenue, expense or
. For each component affected part a., determine if it "increased" or "decreased".
. Identify increae and decrease as debits or credits
. Assign dollar amount and record.
CHART OF ACCOUNTS
Jim's Lawn Care