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3.The balances in the ledger of Landscape Services as of December 31, 2005 before ad adjustments, are as follows Cash Supplies Prepaid Insurance Equipment Accumulated $20,000 13,050 2,900 52,500 28,500 5,000 $ 4,500 Capital Stock 4,150 Retained Earnings 8,700 Dividends 42,000 Service Revenue Salary Expense Depreciation 10,200 Rent Expense Adjustment data are as follows: supplies on hand, December 31, $1,000; insurance expired for December, $900; depreciation on equipment for December, $1,500; salaries accrued, December 31, $1,000. (a) Prepare a ten-column worksheet for Landscape Services for December, 2005. On the basis of the worksheet in (a), present the following in the proper format: (1) income statement, (2) retained earnings statement (no additional investments were made during the month), and (3) balance sheet. (b) 4.After all adjustments have been made, but before the accounts have been closed, the following balances were taken from the ledger: Accounts payable Accounts receivable Accumulated $8,600 5,275 21,400 50,950 66,000 150 151,000 $ 40.000 54,500 depreciation Capital stock Cash Depreciation expense 83,325 50,000 7,150 23,500 Insurance expense Prepaid insurance Rent expense Retained earnings Salaries expense Salaries payable Service revenue Dividends Equipment 28,000 155,000 Supplies Supplies expense 2,500 3,500 Journalize the entries to close the appropriate accounts. 5.Using the perpetual inventory system, journalize the entries for the following selected transactions: (a) (b) (c) (d) (e) Sold merchandise on account, for $10,000. The cost of the merchandise sold was $4,500. Sold merchandise to customers who used MasterCard and VISA, $8,500. The cost of the merchandise sold was $4,100. Sold merchandise to customers who used American Express, $3,500. The cost of the merchandise sold was $1,600. Paid an invoice from First National Bank for $255, representing a service fee for processing MasterCard and VISA sales. Received $3,325 from American Express Company after a $175 collection fee had been deducted

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