September 2023 During the summer Bill Jones decided to earn money as a lawn service professional

2024 During the summer, Bill Jones decided to earn money as a lawn service professional. Assignment Help

During the summer Bill Jones decided to earn money as a lawn service professional 2023

During the summer, Bill Jones decided to earn money as a lawn service professional. He solicited business in the area and received enough interest in his service that he thought he could be successful at it. On the basis of these contracts, Bill went to the bank and withdrew $2,000.00 of his savings. Bill also arranged with a local “Rent-All” dealer for a summer rental of a used truck for $1,200.00 and used tools and equipment for $600.00. At the end of the summer (August 31st), Bill tried to figure out how well he had done. Bill examined his cheque book and found the following: Deposits in the bank, all from customer collections, totaled $11,400.00. The following cheques had been written – truck and equipment rental, $1,800.00; gas, oil and maintenance, $880.00; miscellaneous supplies used, $90.00; helpers, $4,700.00; payroll taxes, $500.00; insurance, $175.00; telephone, $100.00 and $2,000.00 for deposit to his personal savings account. Bill also had records that showed a customer still owed him $600.00 and that he still owed $100.00 for gas and oil. REQUIRED: 1. SHOW THE EFFECT OF EACH TRANSACTION ON THE ACCOUNTING EQUATION. 2. PREPARE AN INCOME STATEMENT FOR BILL’S SUMMER BUSINESS. 3. PREPARE A BALANCE SHEET FOR BILL AT THE END OF THE SUMMER.

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