Trim Lawn, Inc., is a lawn care company. Thus, the company earns its revenue from sending its trucks to customers’ residences and certain commercial establishments to care for lawns and shrubbery. Trim Lawn’s trial balance at the end of the first 11 months of the year follows:
TRIM LAWN, INC.
Trial Balance
November 30
Acct.
No. Account Title Debits Credits
100 Cash $ 63,740
103 Accounts Receivable 88,600
150 Trucks 102,900
160 Office Furniture 8,400
200 Accounts Payable $ 33,600
300 Capital Stock 30,000
310 Retained Earnings, 2010 January 1 30,540
400 Service Revenue 371,010
505 Advertising Expense 18,300
506 Gas an d Oil Expense 21,900
507 Salaries Expense 65,850
511 Utilities Expense 2,310
515 Rent Expense 15,000
518 Supplies Expense 75,600
531 Entertainment Expense 2,550
$465,150 $465,150
Dec. 2 Paid rent for December, $ 3,000.
5 Paid the accounts payable of $ 33,600.
8 Paid advertising for December, $ 1,500.
10 Purchased a new office desk on account, $ 1,050.
13 Purchased $ 240 of supplies on account for use in December.
15 Collected cash from customers on account, $ 75,000.
20 Paid for customer entertainment, $ 450.
24 Collected an additional $ 6,000 from customers on account.
26 Paid for gasoline used in the trucks in December, $ 270.
28 Billed customers for services rendered, $ 79,500.
30 Paid for more December supplies, $ 12,000.
31 Paid December salaries, $ 15,300.
31 Paid a $ 4,000 cash dividend. (The Dividends account is No. 320.)
Prepare entries in the general journal for the preceding transactions for December.
Post the journal entries to three-column general ledger accounts.
Prepare a trial balance as of December 31.