BA 211 Fundamentals of Financial Accounting

Project #1 – Financial Statements make this into excel spreadsheets

Requirements

Use the following transaction descriptions to compose thefollowing items:

?Journal entries for all transactions through the end of year(Dec. 31)

?End of year unadjusted trial balance

?Adjusting journal entries for end of year adjustingtransactions

?End of year adjusted trial balance

?Income Statement

?Statement of Retained Earnings

?Balance Sheet

Transactions:

1.Dec. 1

– a new company is formed called “Lawn Darter, Inc.” $10,000cash is contributed to the

start-up in exchange for common stock.

2.Dec. 1

– $1,500 was paid for 3 months’ rent in advance.

3.Dec. 1

– a $2,400 riding lawn mower was purchased in cash. This pieceof equipment was

determined to have a 2 year (24 month) usable lifespan.

4.Dec. 8

– $400 of supplies were purchased on account and paid in cash 30days later.

5.Dec. 10

– lawn service job was performed and payment was $1,250 incash

6.Dec. 12

– a customer paid $1,400 in cash for lawn service to beperformed Jan. 10

7.Dec. 15

– lawn service job was performed and payment was $1,100 incash

8.Dec. 17

– lawn service job was performed and payment was $750 onaccount, paid in cash 30 days

later.

9.Dec. 20

– lawn service job was performed and payment was $1,800 incash

10.Jan. 1

– an inventory was done and it was determined $150 of supplieswere used in Dec.

11.Jan. 5

– a $200 dividend for the prior year was paid in cash

12.Jan. 5

– $1,700 in employee wages for Dec. were paid in cash

13.Jan. 10

– lawn service job was performed per previous agreement

14.Mar. 1

– $450 of income taxes were due for the prior yea