Requirement #1:
During its first month of operation, the Flower Landscaping Corporation, which specializes in residential landscaping,
completed the following transactions.
March 1Began 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 1Paid the current month’s rent, $4,500.
March 1Paid the premium on a 1-year insurance policy, $3,300.
March 7Purchased supplies on account from Parkview Company, $900.
March 10Paid employee salaries, $2,200.
March 14Purchased 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 20 months. The first payment is due 4/1.
Note: Use accounts payable for the balance due.
March 15Received cash for landscaping revenue for the first half of March, $4,896.
March 19Made payment on account to Parkview Company, $450.
March 31Received cash for landscaping revenue for the last half of March, $5,304.
March 31Declared 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 JournalChart of Accounts: Account Title (Normal Balance)
DateDescription(Account Name)DebitCredit
Assets
Cash (Debit)
Prepaid Insurance (Debit)
Supplies (Debit)
Equipment (Debit)
Accumulated Depreciation -Equipment (Credit)
Liabilities
Accounts Payable (Credit)
Income Tax Payable (Credit)
Stockholders’ Equity
Common Stock (Credit)
Retained Earnings (Credit)
Dividends (Debit)
Revenue
Landscaping Revenue (Credit)
Expenses
Rent Expense (Debit)
Salaries Expense (Debit)
Insurance Expense (Debit)
Supplies Expense (Debit)
Depreciation Expense (Debit)
Income Tax Expense (Debit)
Clearing Account
Income Summary
00
Note: Remember that debits must equal creditsAll of your journal entries should balance.
