financial accounting 85

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Lawn Ranger Landscaping Service
Introduction Kyle Cross is a student at Western University. He has worked part time assisting a landscaper since his junior year in high school. At the end of Kyle’s freshmen year of college, his employer, Mr. Sanchez, decided to retire. After several conservations with Mr. Sanchez, Kyle decided to try and start his own lawn care business. Following the advice of his former boss, Kyle decided to simplify his business in several ways. Kyle will concentrate on small residential jobs. He will only bid on jobs he can do himself, eliminating the need for employees and the accompanying taxes and reporting requirements. In order to avoid having to invest in expensive equipment, Kyle will only accept jobs that require a lawn mower, small garden tools, or equipment that he can rent at a reasonable price. Kyle realizes that his real future is in his college education, not lawn care or landscaping. Mr. Sanchez reminded him that it is better to be successful in a small niche than a failure in a big one. As such, he realizes he will have to remain disciplined and turn down jobs that are beyond his abilities and resources. Mr. Sanchez suggested that Kyle have his customers select and purchase any plants and materials required at local garden centers. Kyle’s business will be too small to receive any price discounts from wholesale nurseries. Naturally, Kyle will assist customers in selecting plants.

Instructions: 1. Familiarize yourself with the contents of this document and the Excel file before you begin. 2. Read through the chart of accounts. 3. Prepare the entries using the list of transactions. Put them in the general journal. 4. Post the journal entries from the general journal to the general ledger. 5. Prepare a trial balance using the general ledger totals. 6. Prepare the adjusting entries using the list of transactions. Put them in the general journal. 7. Post the adjusting journal entries from the general journal to the general ledger. 8. Prepare the adjusted trial balance using the general ledger totals. 9. Prepare the financial statements from the adjusted trial balance. 10. Make the appropriate closing entries to the general journal. 11. Post the closing entries to the general ledger. 12. Prepare the post-closing trial balance.

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