Accounting Cycle Project - Solid Footing 5e First Name:

Last Name:
Project is Activated ID Code:

Before you begin working on your project,

save your activated project by following the directions in the Saving Your Project box. Saving Your Project -- Immedi
Save your project in a file that uses your name as
form: LastNameFirstName-ACP.xls For examp
Instructions: file name SmithMary-ACP.xls
You will be recording the July 2011 transactions for Lenny's Lawn Service, Inc. After recording
the July transactions you will be preparing a Pre-Closing Trial Balance, Income Statement, Windows Excel 2010 and Excel 2003, follow
Statement of Stockholders' Equity, Balance Sheet, and Post-Closing Trial Balance. - Click File
- Click Save As
- In File name: enter LastNameFirstName-AC
As you work on your project, be sure to save your Excel file often. - Click Save

You are given the following: Windows Excel 2007, follow these directions:
- Click the Office Button in the upper left corne
_ July 2011 transactions and Additional Information -- Trans tab
- Point to Save As
_ Chart of Accounts with Account Numbers and Account Names -- Chart Accts tab - Click Excel 97-2003 Workbook
_ General Journal pages -- Journal tab - In File name: enter LastNameFirstName-AC
- Click Save
_ Lenny's General Ledger -- GL Assets, GL Liab-Equity, GL Rev-Exp-Div tabs Any time you save your project, if Excel 2007 ask
_ Forms for the July 31, 2011 Pre-Closing Trial Balance, Income Statement, this document by converting to an Office Open X
Statement of Stockholders' Equity, Balance Sheet, and Post-Closing Trial Balance
Trial Bal, IS & SEquity, BalSht, and Post Close TB tabs Mac Excel 2011, follow these directions:
- Click File
To Complete Your Project do the following: - Click Save As
_ Print the July Transactions (click the Trans tab and then click the Printer Icon) - In Save As: enter LastNameFirstName-ACP
- Format should be Excel 97-2004 Workbook
- Click Save
_ Print the Chart of Accounts (click the Chart Accts tab and then click the Printer Icon)
- Always Click Continue to the message X "Th
_ Record the July transactions in the General Journal. Click the Journal tab and record
your entries directly into the General Journal. Look at the July 1 Notes Payable Steps 1 and 2
transaction, which has already been entered, for an example of how to make your entries. in the Accounting Cycle
Do not put the "X" in the Posted column at this time. Use the printed Chart of Accounts
as a reference source for the Account Numbers and Account Names that are available Step 1
in Lenny's accounting system. For each business transaction
that occurs during the accounting
_ To make posting from the General Journal to the General Ledger easier, it is recommended that period, determine the effect of the
you print the General Journal -- click the Journal tab and then click the Printer Icon. transaction on the General Ledger
accounts.
_ Post the entries from the printed General Journal to the General Ledger accounts. Click the
GL Assets, GL Liab-Equity, and GL Rev-Exp-Div tabs to find the accounts to be posted. Step 2
Record your postings directly into the General Ledger. As you post an amount to an account Make an entry in the General
be sure to enter the General Journal Page # into the Journal Page # column. See Journal for each transaction and
the first posting to the Cash account for an example. After you post an amount to a post the entry to the General
General Ledger account, then hand write an "X" in the Posted column of the printed Ledger accounts.
General Journal. This will help you keep track of which entries you have posted.

_ Enter the "X"s, which you hand wrote on your General Journal pages, into the
General Journal. Click the Journal tab and enter the "X"s in the Posted column
 Pg. 2
_ Determine the required adjusting entries as of July 31, 2011. Click on the Trans tab Step 3 in the Accounting Cycle
and look at the Additional Information given at the bottom of the screen for information
needed to prepare the adjusting entries. Click the Journal tab and record your At the end of the accounting
adjusting entries in the General Journal. Use the printed Chart of Accounts as a period, before preparing the
reference source for the Account Numbers and Account Names that are available in financial statements, determine
Lenny's accounting system. Put your adjusting entries on Page # 4 of the General Journal. if any of the General Ledger
account balances need to be
_ Post the adjusting entries from the General Journal to the General Ledger accounts. adjusted. Enter any required
Click the GL Assets, GL Liab-Equity, and GL Rev-Exp-Div tabs to find the accounts to be adjusting entries into the General
posted. As you post an amount to an account be sure to enter the General Journal Page # Journal and post the adjusting
into the Journal Page # column. After you post an amount to a General Ledger account, entries to the General Ledger
click back on the Journal tab and enter an "X" in the Posted column of the General Journal. accounts.

_ Print Lenny's General Ledger by: clicking the GL Assets tab and then clicking the Printer icon,
clicking the GL Liab-Equity tab and then clicking the Printer icon, and clicking the Step 4 in the Accounting Cycle
GL Rev-Exp-Div tab and then clicking the Printer icon.
Prepare a Pre-Closing Trial
_ Using the printed General Ledger, enter the ending account balances into the July 31, 2011 Balance to determine that the
Pre-Closing Trial Balance. Click the Trial Bal tab and enter the amounts into the accounts in the General Ledger
Pre-Closing Trial Balance. Print the July 31, 2011 Pre-Closing Trial Balance by clicking are in balance.
the Printer icon.

Step 5 in the Accounting Cycle

_ Using the printed July 31, 2011 Pre-Closing Trial Balance, prepare the July 2011 Prepare an Income Statement
Income Statement. Click the IS & SEquity tab and enter the amounts into the Income from the ending balances in the
Statement. General Ledger revenue and
expense accounts.

Step 6 in the Accounting Cycle

_ Using the printed July 31, 2011 Pre-Closing Trial Balance, prepare the July 2011 Calculate the ending balance
Statement of Stockholders' Equity. Click the IS & SEquity tab and enter the of the Retained Earnings
amounts into the Statement of Stockholders' Equity. account that is needed for the
preparation of the Balance
Sheet

Step 7 in the Accounting Cycle

Prepare the Balance Sheet
_ Using the printed July 31, 2011 Pre-Closing Trial Balance and the Retained Earnings amount from the ending balances in the
from the Statement of Stockholders' Equity, prepare the July 31, 2011 Balance Sheet. General Ledger asset accounts,
Click the BalSht tab and enter the amounts into the Balance Sheet. liability accounts, Common
Stock account, and the
calculated ending balance for
the Retained Earnings account.

_ Prepare the closing entries. Click the Journal tab and enter the closing entries into the Step 8 in the Accounting Cycle
General Journal. Place your closing entries on Page # 5 of the General Journal. Prepare and enter the revenue,
expense, and dividend closing
_ Post the closing entries from the General Journal to the General Ledger accounts. entries into the General
Click the GL Liab-Equity, and GL Rev-Exp-Div tabs to find the accounts to be posted. Journal, and post the closing
As you post an amount to an account be sure to enter the General Journal Page # into entries to the General Ledger
the Journal Page # column. After you post an amount to a General Ledger account, accounts.
click back on the Journal tab and enter an "X" in the Posted column of the General Journal.

Step 9 in the Accounting Cycle

Prepare a Post-Closing Trial
_ Click the Post Close TB tab and prepare the July 31, 2011 Post-Closing Trial Balance. Balance to determine that the
accounts in the General Ledger
are in balance and ready to
start a new Accounting Cycle.
Your project is complete!
Your instructor will provide you with directions on how to submit your project.
 Lenny's Lawn Service, Inc. - Transactions - Additional Information

July 2011 Transactions

Date Description of the Transaction

July 1 Borrow $35,000.00 from 1st Bank by signing a 24 month note with a 4% annual interest rate.
(As an example of how to journalize and post a transaction -- this transaction has already been entered
into the General Journal and posted to the General Ledger.)

July 1 Receive $58,000.00 cash from new investors, and issue $58,000.00 of Common Stock to them.

July 1 Purchase $84,000.00 of new mowing equipment, paying cash to the mower dealer.

July 1 Pay $500.00 cash for the July truck rental.

July 3 Invoice a new customer $900.00 for a completed mowing job -- customer will pay in 10 days.

July 5 The Board of Directors declares a cash dividend. The total amount of the dividend is $11,000.00
The Date of Record is set as July 15. The Date of Payment is set as July 31.

July 7 Pay the employees $6,000.00 for work performed during the 1st week of July.

July 10 Complete a mowing job for a new customer -- customer pays $500.00 cash for the job.

July 12 Collect $3,500.00 cash from the golf course for special rush mowing job completed on May 31, 2011.

July 14 Pay the employees $4,800.00 for work performed during the 2nd week of July.

July 15 Purchase $50.00 of supplies from the mower dealer. The supplies are consumed immediately.
Lenny's will pay the mower dealer for the supplies in about 2 weeks.

July 15 Collect $900.00 on account. The cash that is received is from the new customer for the job
that was completed on July 3.

July 17 One of the original mowers purchased in January of 2010 broke down and is repaired by the mower
dealer. The cost of the Mower Repair job is $430.00. Lenny's will pay the mower dealer in 30 days.

July 19 Purchase for cash $17,000.00 of supplies. These supplies will be consumed over the next 12 months.

July 20 Collect $30,000.00 from the property management company for work performed in June.

July 21 Pay the employees $5,750.00 for work performed during the 3rd week of July.

July 23 Receive a $48,000.00 advance payment from the university. The advance payment is for 6 months
of work which will be performed from August 1, 2011 to January 31, 2012.

July 25 Complete a special mowing job for the golf course. The total price for the mowing job is $3,900.00.
The golf course pays $1,000.00 cash on this date and will pay the remainder on August 25.

July 27 Complete a mowing job for a new customer -- customer pays $225.00 cash for the job.

July 27 Pay $50.00 cash to the mower dealer for the supplies purchased on account on July 15.

July 28 Pay the employees $6,300.00 for work performed during the 4th week of July.

July 31 Invoice the property management company $33,000.00 for July mowing work. The property
management company will pay the invoice on the 20th of next month.

July 31 Pay the cash dividend which was declared on July 5.

 Additional Information

Equipment: The $48,000.00 beginning balance in the Equipment account relates to the mowing equipment
which was purchased on January 2, 2010. For information related to this mowing equipment
see Page 70 in the Solid Footing book. This equipment continues to be used and should be
depreciated for the month of July.

The following information relates to the new equipment which was purchased on July 1, 2011:
The new equipment was placed into service on July 1, 2011 and should be depreciated
for the month of July.
The estimated useful life of the new equipment is 5 years.
At the end of 5 years, the new equipment will have no future value and will be scrapped.
The new equipment will be depreciated using the straight-line method.

Supplies: At the end of July there are $15,550.00 supplies on-hand.

Mowing Service
at the University: The monthly mowing service was provided to the university per the contract signed on April 1, 2011.
For information on the contract with the university and the related advance payment, see
Pages 95 and 98 in the Solid Footing book.

Wages Due
the Employees: The last wage payment was made to the employees on July 28, 2011. The employees worked on
July 29, 30, and 31. For these three days of work the employees earned $3,200.00 of wages.
These three days of wages will be paid to the workers during the first week of August.

Bank Loan: The interest on the loan from 1st Bank will be paid every three months. The first interest payment
to the bank will be made on September 30, 2011. Lenny's calls the bank on July 31 and the
bank indicates that the interest on the loan for July is $115.00
 Lenny's Lawn Service, Inc. - Chart of Accounts

Account # Account Name

Assets:
100 Cash
105 Accounts Receivable
110 Supplies
150 Equipment
155 Accumulated Depreciation
Liabilities:
200 Accounts Payable
205 Wages Payable
210 Interest Payable
215 Unearned Revenue
220 Dividends Payable
250 Note Payable
Equity:
300 Common Stock
305 Retained Earnings
Revenues:
400 Service Revenue
Expenses:
500 Supplies Expense
505 Mower Repair Expense
510 Wages Expense
515 Truck Rental Expense
520 Depreciation Expense
550 Interest Expense
Dividends:
600 Dividends
 Nicole Petriw

Lenny's Lawn Service, Inc. - General Journal

Page # 1

2011 Account
Account Name Posted Debit Credit
Month-Day Number
7-1 100 Cash X 35,000.00
250 Notes Payable X 35,000.00
Borrowed on Note Payable

7-1 100 Cash X 58,000.00

300 Common Stock X 58,000.00
Issued Common Stock

7-1 150 Equipment X 84,000.00

100 Cash X 84,000.00
Purchase Equipment for Cash

7-1 515 Truck Rental Expense X 500.00

100 Cash X 500.00
Pay Cash for July Truck Rental

7-3 105 Accounts Receivable X 900.00

400 Service Revenue X 900.00
Invoice Customer for Complete Mowing J

7-5 600 Dividends X 11,000.00

220 Dividends Payable X 11,000.00
Board of Directors Declare Cash Dividen

7-7 510 Wages Expense X 6,000.00

100 Cash X 6,000.00
Pay Wages for First Week of July

7-10 100 Cash X 500.00

400 Service Revenue X 500.00
Customer Pays Cash for Job

7-12 100 Cash X 3,500.00

105 Accounts Receivable X 3,500.00
Collect Cash for Job Completed in May
 Lenny's Lawn Service, Inc. - General Journal
Page # 2

2011 Account
Account Name Posted Debit Credit
Month-Day Number
7-14 510 Wages Expense X 4,800.00
100 Cash X 4,800.00
Pay Wages for Second Week of July

7-15 500 Supplies Expense X 50.00

200 Accounts Payable X 50.00
Purchase Supplies on Account

7-15 100 Cash X 900.00

105 Accounts Receivable X 900.00
Collect Cash for Job completed on July 3

7-17 505 Mower Repair Expense X 430.00

200 Accounts Payable X 430.00
Repair Mower on Account

7-19 110 Supplies X 17,000.00

100 Cash X 17,000.00
Purchase Supplies for Cash

7-20 100 Cash X 30,000.00

105 Accounts Receivable X 30,000.00
Collect Cash for Work in June

7-21 510 Wages Expense X 5,750.00

100 Cash X 5,750.00
Pay Wages for Third Week of July

7-23 100 Cash X 48,000.00

215 Unearned Revenue X 48,000.00
Received Cash for Advance Payment

7-25 100 Cash X 1,000.00

105 Accounts Receivable X 2,900.00
400 Service Revenue X 3,900.00
Collect Cash and on Account for Job
 Lenny's Lawn Service, Inc. - General Journal
Page # 3

2011 Account
Account Name Posted Debit Credit
Month-Day Number
7-27 100 Cash X 225.00
400 Service Revenue X 225.00
Receive Cash for Job

7-27 200 Accounts Payable X 50.00

100 Cash X 50.00
Cash for Supplies Purchased on Account

7-28 510 Wages Expense X 6,300.00

100 Cash X 6,300.00
Pay Wages for Fourth Week of July

7-31 105 Accounts Receivable X 33,000.00

400 Service Revenue X 33,000.00
Invoice for Work Done in July

7-31 220 Dividends Payable X 11,000.00

100 Cash X 11,000.00
Pay Cash for Dividend

7-31 520 Depreciation Expense X 2,400.00

155 Accumulated Depreciation X 2,400.00
Equipment Depreciation for July

7-31 500 Supplies Expense X 5,825.00

110 Supplies X 5,825.00
Supplies Used in July

7-31 215 Unearned Revenue X 8,000.00

400 Service Revenue X 8,000.00
Monthly Payment for Contract from April

7-31 510 Wages Expense X 3,200.00

205 Wages Payable X 3,200.00
Wages for Last Three Days of July
 Lenny's Lawn Service, Inc. - General Journal
Page # 4

2011 Account
Account Name Posted Debit Credit
Month-Day Number
7-31 550 Interest Expense X 115.00
210 Interest Payable X 115.00
Interest for Loan

7-31 400 Service Revenue X 46,525.00

305 Retained Earnings X 46,525.00
Close Service Revenue Account

7-31 305 Retained Earnings X 35,370.00

500 Supplies Expense X 5,875.00
505 Mower Repair Expense X 430.00
510 Wages Expense X 26,050.00
515 Truck Rental Expense X 500.00
520 Depreciation Expense X 2,400.00
550 Interest Expense X 115.00
Close Expense Accounts

7-31 305 Retained Earnings X 11,000.00

600 Dividends X 11,000.00
Close Dividends Account
 Lenny's Lawn Service, Inc. - General Journal
Page # 5

2011 Account
Account Name Posted Debit Credit
Month-Day Number
 Nicole Petriw

Lenny's Lawn Service, Inc. - General Ledger

Account # 100 Cash

2011 Journal
Debit Credit Balance
Month-Day Page #
7-1 Beginning Balance 38,250.00 38,250.00 Dr
7-1 1 35,000.00 73,250.00 Dr
7-1 1 58,000.00 131,250.00 Dr
7-1 1 84,000.00 47,250.00 Dr
7-1 1 500.00 46,750.00 Dr
7-7 1 6,000.00 40,750.00 Dr
7-10 1 500.00 41,250.00 Dr
7-12 1 3,500.00 44,750.00 Dr
7-14 2 4,800.00 39,950.00 Dr
7-15 2 900.00 40,850.00 Dr
7-19 2 17,000.00 23,850.00 Dr
7-20 2 30,000.00 53,850.00 Dr
7-21 2 5,750.00 48,100.00 Dr
7-23 2 48,000.00 96,100.00 Dr
7-25 2 1,000.00 97,100.00 Dr
7-27 3 225.00 97,325.00 Dr
7-27 3 50.00 97,275.00 Dr
7-28 3 6,300.00 90,975.00 Dr
7-31 3 11,000.00 79,975.00 Dr

Account # 105 Accounts Receivable

2011 Journal
Debit Credit Balance
Month-Day Page #
7-1 Beginning Balance 33,500.00 33,500.00 Dr
7-3 1 900.00 34,400.00 Dr
7-12 1 3,500.00 30,900.00 Dr
7-15 2 900.00 30,000.00 Dr
7-20 2 30,000.00 0.00 Dr
7-25 2 2,900.00 2,900.00 Dr
7-31 3 33,000.00 35,900.00 Dr
 Nicole Petriw

Lenny's Lawn Service, Inc. - General Ledger

Account # 110 Supplies

2011 Journal
Debit Credit Balance
Month-Day Page #
7-1 Beginning Balance 4,375.00 4,375.00 Dr
7-19 2 17,000.00 21,375.00 Dr
7-31 3 5,825.00 15,550.00 Dr

Account # 150 Equipment

2011 Journal
Debit Credit Balance
Month-Day Page #
7-1 Beginning Balance 48,000.00 48,000.00 Dr
7-1 1 84,000.00 132,000.00 Dr

Account # 155 Accumulated Depreciation

2011 Journal
Debit Credit Balance
Month-Day Page #
7-1 Beginning Balance 18,000.00 18,000.00 Cr
7-31 3 2,400.00 20,400.00 Cr
 Nicole Petriw

Lenny's Lawn Service, Inc. - General Ledger

Account # 200 Accounts Payable

2011 Journal
Debit Credit Balance
Month-Day Page #
7-1 Beginning Balance 0.00 0.00 Cr
7-15 2 50.00 50.00 Cr
7-17 2 430.00 480.00 Cr
7-27 3 50.00 430.00 Cr

Account # 205 Wages Payable

2011 Journal
Debit Credit Balance
Month-Day Page #
7-1 Beginning Balance 0.00 0.00 Cr
7-31 3 3,200.00 3,200.00 Cr

Account # 210 Interest Payable

2011 Journal
Debit Credit Balance
Month-Day Page #
7-1 Beginning Balance 0.00 0.00 Cr
7-31 4 115.00 115.00 Cr

Account # 215 Unearned Revenue

2011 Journal
Debit Credit Balance
Month-Day Page #
7-1 Beginning Balance 8,000.00 8,000.00 Cr
7-23 2 48,000.00 56,000.00 Cr
7-31 3 8,000.00 48,000.00 Cr
 Nicole Petriw

Lenny's Lawn Service, Inc. - General Ledger

Account # 220 Dividends Payable

2011 Journal
Debit Credit Balance
Month-Day Page #
7-1 Beginning Balance 0.00 0.00 Cr
7-5 1 11,000.00 11,000.00 Cr
7-31 3 11,000.00 0.00 Cr

Account # 250 Note Payable

2011 Journal
Debit Credit Balance
Month-Day Page #
7-1 Beginning Balance 0.00 0.00 Cr
7-1 1 35,000.00 35,000.00 Cr

Account # 300 Common Stock

2011 Journal
Debit Credit Balance
Month-Day Page #
7-1 Beginning Balance 50,000.00 50,000.00 Cr
7-1 1 58,000.00 108,000.00 Cr

Account # 305 Retained Earnings

2011 Journal
Debit Credit Balance
Month-Day Page #
7-1 Beginning Balance 48,125.00 48,125.00 Cr
7-31 4 46,525.00 94,650.00 Cr
7-31 4 35,370.00 59,280.00 Cr
7-31 4 11,000.00 48,280.00 Cr
 Nicole Petriw
Lenny's Lawn Service, Inc. - General Ledger
Account # 400 Service Revenue

2011 Journal
Debit Credit Balance
Month-Day Page #
7-1 Beginning Balance 0.00 0.00 Cr
7-3 1 900.00 900.00 Cr
7-10 1 500.00 1,400.00 Cr
7-25 2 3,900.00 5,300.00 Cr
7-27 3 225.00 5,525.00 Cr
7-31 3 33,000.00 38,525.00 Cr
7-31 3 8,000.00 46,525.00 Cr
7-31 4 46,525.00 0.00 Cr

Account # 500 Supplies Expense

2011 Journal
Debit Credit Balance
Month-Day Page #
7-1 Beginning Balance 0.00 0.00 Dr
7-15 2 50.00 50.00 Dr
7-31 3 5,825.00 5,875.00 Dr
7-31 4 5,875.00 0.00 Dr

Account # 505 Mower Repair Expense

2011 Journal
Debit Credit Balance
Month-Day Page #
7-1 Beginning Balance 0.00 0.00 Dr
7-17 2 430.00 430.00 Dr
7-31 4 430.00 0.00 Dr
 Nicole Petriw
Lenny's Lawn Service, Inc. - General Ledger

Account # 510 Wages Expense

2011 Journal
Debit Credit Balance
Month-Day Page #
7-1 Beginning Balance 0.00 0.00 Dr
7-7 1 6,000.00 6,000.00 Dr
7-14 2 4,800.00 10,800.00 Dr
7-21 2 5,750.00 16,550.00 Dr
7-28 3 6,300.00 22,850.00 Dr
7-31 3 3,200.00 26,050.00 Dr
7-31 4 26,050.00 0.00 Dr

Account # 515 Truck Rental Expense

2011 Journal
Debit Credit Balance
Month-Day Page #
7-1 Beginning Balance 0.00 0.00 Dr
7-1 1 500.00 500.00 Dr
7-31 4 500.00 0.00 Dr

Account # 520 Depreciation Expense

2011 Journal
Debit Credit Balance
Month-Day Page #
7-1 Beginning Balance 0.00 0.00 Dr
7-31 3 2,400.00 2,400.00 Dr
7-31 4 2,400.00 0.00 Dr

Account # 550 Interest Expense

2011 Journal
Debit Credit Balance
Month-Day Page #
7-1 Beginning Balance 0.00 0.00 Dr
7-31 4 115.00 115.00 Dr
7-31 4 115.00 0.00 Dr
 Nicole Petriw
Lenny's Lawn Service, Inc. - General Ledger

Account # 600 Dividends

2011 Journal
Debit Credit Balance
Month-Day Page #
7-1 Beginning Balance 0.00 0.00 Dr
7-5 1 11,000.00 11,000.00 Dr
7-31 4 11,000.00 0.00 Dr
24a15 Nicole Petriw 86325257

Lenny's - July 31, 2011 Pre-Closing Trial Balance

Account # Account Name Debit Credit CAUTION

Enter amounts into the Pre-Closin
100 Cash 79,975.00 by typing in the amounts.
105 Accounts Receivable 35,900.00 Do NOT copy cells from the Gene
110 Supplies 15,550.00
150 Equipment 132,000.00
155 Accumulated Depreciation 20,400.00
200 Accounts Payable 430.00
205 Wages Payable 3,200.00
210 Interest Payable 115.00
215 Unearned Revenue 48,000.00
220 Dividends Payable 0.00
250 Note Payable 35,000.00
300 Common Stock 108,000.00
305 Retained Earnings 48,125.00
400 Service Revenue 46,525.00
500 Supplies Expense 5,875.00
505 Mower Repair Expense 430.00
510 Wages Expense 26,050.00
515 Truck Rental Expense 500.00
520 Depreciation Expense 2,400.00
550 Interest Expense 115.00
600 Dividends 11,000.00
Totals 309,795.00 309,795.00
 Nicole Petriw 86325257
Lenny's Lawn Service, Inc. CAUTION
Income Statement Enter amounts into the Financial Statements by typing in the amounts.
for the Month Ended July 31, 2011 Do NOT copy cells from the General Ledger or Pre-Closing Trial Balance.

Service Revenue $46,525.00

Operating Expenses: Note the new line item on Lenny's Income Statement
Supplies (5,875.00) Income from Operations. This is Lenny's income from the
Mower Repair (430.00) normal operations of the lawn mowing business.
Wages (26,050.00) Interest Expense, which is not a cost of operating the business
Truck Rental (500.00) but rather a cost of financing the business, is shown below
Depreciation (2,400.00) Income from Operations. Interest Expense is subtracted from
Total Operating Expenses (35,255.00) Income from Operations to arrive at Net Income.
Income from Operations 11,270.00
Interest Expense (115.00)
Net Income $11,155.00

Lenny's Lawn Service, Inc. This is the first time you have prepared a formal Statement of
Statement of Stockholders' Equity Stockholders' Equity for Lenny's. This statement simply
for the Month Ended July 31, 2011 shows what caused the changes in the Stockholders' Equity
amounts from last month to this month. Note that the
Common Retained Retained Earnings column on the statement looks the same as
Stock Earnings Total the calculation you have been doing each month to determine the
Beginning Balance July 1, 2011 $50,000.00 $48,125.00 $98,125.00 Retained Earnings balance needed for the Balance Sheet. Thus,
Issue Common Stock 58,000.00 58,000.00 if you prepare a formal Statement of Stockholders' Equity, you
Net Income 11,155.00 11,155.00 have already calculated the Retained Earnings balance needed for
Dividends (11,000.00) (11,000.00) the Balance Sheet, and you have completed Step 6 in the
Ending Balance July 31, 2011 $108,000.00 $48,280.00 $156,280.00 Accounting Cycle.
 Nicole Petriw 86325257
Lenny's Lawn Service, Inc. CAUTION
Balance Sheet Enter amounts into the Balance Sheet by typing in the amounts.
as of July 31, 2011 Do NOT copy cells from the General Ledger or Pre-Closing Trial Balance.

Assets
Current Assets:
Cash $79,975.00
Accounts Receivable 35,900.00
Note the following three new sub-totals appearing on
Supplies 15,550.00 Lenny's Balance Sheet:
Total Current Assets 131,425.00
Total Current Assets is a total of those assets,
Property & Equipment: which will turn-into cash during the next 12 months or
Equipment $132,000.00 be consumed during the next 12 months. The
Accumulated Depreciation (20,400.00) comparison of Total Current Assets to Total Current
Liabilities gives some indication of Lenny's liquidity --
Property & Equipment, net 111,600.00 that is, its ability to pay its bills in the short-term.
Total Assets $243,025.00
Property & Equipment, net is the amount of Fixed
Asset cost, which remains to be depreciated in future
Liabilities & Stockholders' Equity accounting periods.
Current Liabilities: Total Current Liabilities is a total of those
Accounts Payable $430.00 liabilities that will require payment in the next 12
Wages Payable 3,200.00 months. In the case of Unearned Revenue, this
Interest Payable 115.00 current liability will be "paid-off" by Lenny's delivering
mowing services to the university.
Unearned Revenue 48,000.00
Total Current Liabilities 51,745.00
Long-Term Liabilities:
Note Payable 35,000.00
Total Liabilities 86,745.00

Stockholders' Equity:
Common Stock 108,000.00
Retained Earnings 48,280.00
Total Stockholders' Equity 156,280.00
Total Liabilities & Stockholders' Equity $243,025.00
 Nicole Petriw 86325257

Lenny's - July 31, 2011 Post-Closing Trial Balance

Account # Account Name Debit Credit CAUTION

Enter amounts into the Post-Closi
100 Cash 79,975.00 by typing in the amounts.
105 Accounts Receivable 35,900.00
Do NOT copy cells from the Gene
110 Supplies 15,550.00
150 Equipment 132,000.00
155 Accumulated Depreciation 20,400.00
200 Accounts Payable 430.00
205 Wages Payable 3,200.00
210 Interest Payable 115.00
215 Unearned Revenue 48,000.00
220 Dividends Payable 0.00
250 Note Payable 35,000.00
300 Common Stock 108,000.00
305 Retained Earnings 48,280.00
400 Service Revenue 0.00
500 Supplies Expense 0.00
505 Mower Repair Expense 0.00
510 Wages Expense 0.00
515 Truck Rental Expense 0.00
520 Depreciation Expense 0.00
550 Interest Expense 0.00
600 Dividends 0.00
Totals 263,425.00 263,425.00
 Student's Name: Nicole Petriw 1203811266
Project Id Code: 86325257 Lenny's Lawn Service, Inc.
Class Time: 0
Instructor: Prof. Dallmus
Grading Item Student's Grading Item Student's
Answer Answer
Pre-Closing Trial Balance Balance Sheet
Cash Total Assets
Accounts Receivable Retained Earnings
Supplies
Equipment Income Statement
Accumulated Depreciation Net Income
Accounts Payable
Wages Payable Stockholders' Equity
Interest Payable Common Stock 7-31 Bal.
Unearned Revenue Retained Earnings 7-31 Bal.
Dividends Payable
Note Payable Post-Closing Trial Balance
Common Stock Total Debit Column
Retained Earnings
Service Revenue
Supplies Expense
Mower Repair Expense Your answers will NOT appear on this Grade Page
Wages Expense
Truck Rental Expense
Depreciation Expense
Interest Expense
Dividends