Flower Landscaping Corporation Case Study

During its first month of operation, the Flower Landscaping Corporation, which specializes In residential landscaping, following transactions. Completed the March 1 Began 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 1 Paid the current month’s rent, $4,500. March 1 Paid the premium on a I-year insurance policy, $3,300. March 7 Purchased supplies on account from Preview Company, $900.

March 10 Paid employee salaries, $2,200. March 14 Purchased 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 15 $4,896. March 19 $450. March 31 $5,304. Received cash for landscaping revenue for the first half of March, Made payment on account to Preview Company, Received cash for landscaping revenue for the last half of March, Declared and paid cash dividend of $1,000.

Prepare Journal entries to record the March transactions.