Question

Question:For each transaction,

(2) record the transaction in journal entry form, and

Use the following (partial) chart of accounts—account numbers in parentheses: Cash (101); Accounts Receivable (106); Office Supplies (124); Trucks (153); Equipment (167); Accounts Payable (201); Unearned Landscaping Revenue (236); Common Stock (307); Dividends (319); Landscaping Revenue (403); Wages Expense (601); and Landscaping Expense (696).

a. On May 15, DeShawn Tyler opens a landscaping company called Elegant Lawns by investing \(7,000 in cash along with equipment having a \)3,000 value in exchange for common stock.

b. On May 21, Elegant Lawns purchases office supplies on credit for \(500.

c. On May 25, Elegant Lawns receives \)4,000 cash for performing landscaping services.

d. On May 30, Elegant Lawns receives $1,000 cash in advance of providing landscaping services to a customer.

Short answer

Answer

Total of general journal amounts to $15,500.

Step-by-step solution

Journal Entry

Journal entry is the first record into the books of accounts as soon as the transaction occurs. These entries are made in chronological order.

Journal entry in the books of accounts of Elegant Lawns

Date	Description	PR	Debit	Credit
May 15	Cash	101	$ 7,000
	Equipment	167	$ 3,000
	Common Stock	307		$ 10,000
	Being cash and equipment invested into the business
21	Office Supplies	124	500
	Accounts Payable	201		500
	Being office supplies purchased on credit
25	Cash	101	4,000
	Landscaping Revenues	403		4,000
	Being cash received for services performed
30	Cash	101	1,000
	Unearned landscaping revenues	236		1,000
	Total		$ 15,500	$ 15,500