01 Dec Reliable Lawn Care Service, Inc., a company that t
Reliable Lawn Care Service, Inc., a company that takes care of lawns and shrubbery ofpersonal residences, engaged in the following transactions in April 2010:Apr.1 The company was organized and received USD 400,000 cash from the owners in exchange for capital stock issued.4 The company bought equipment for cash, USD 101,760.9 The company bought additional mowing equipment that cost USD 9,120 and agreed to pay for it in 30 days.15 Cash received for services performed to date was USD 3,840.16 Amount due from a customer for services performed totaled USD 5,280.30 Of the receivable (see April 16), USD 3,072 was collected in cash.30 Miscellaneous operating expenses of USD 6,240 were paid during the month.30 An order was placed for miscellaneous equipment costing USD 28,800.a. Prepare a summary of transactions (see Part A of Exhibit 4). Use money columns headed Cash, Accounts Receivable, Equipment, Accounts Payable, Capital Stock, and Retained Earnings. Determine balances after each transaction to show that the basic accounting equation balances.b. Prepare a balance sheet as of April 30.
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