Reference no: EM132727262

Problem 1: What accounts are affected by these transactions? How much is debited and credited?

For transactions in Jun 2020

1. Signed a lease agreement to lease a storage shed for a monthly rental of $2,600. Rent for 3 months was paid in advance
2. Paid for insurance premium $4,200, period of cover from 1 Jun 20 till 31 May 21.
3. Acquired a chipper and stump grinder equipment for a total cost of $40,320. A deposit of $8,500 was paid immediately and the balance was to be paid in 60 days. The equipment was expected to have a useful life of 6 years.
4. Purchased a quantity of herbicide supplies for $1060 cash. Purchased fuel and oil supplies for $1740 cash.
5. Signed a contract with Community Newspapers for 12 weeks of advertisements in its weekly free newspaper delivered to local homes. The business paid $1,800 in advance for these advertisements.
6. Received cash of $1,800 from a grateful client on a small paving job completed by CPL before the open inspection for sale. Received cash of $2800 for several lawns that had been mowed for clients during the week.
7. Signed a contract with the local shopping centre to provide landscaping maintenance services to its outdoor eating area for a monthly fee of $3200. The shopping centre paid for 2 months' services in advance.
8. Received payment of $3,000 for landscaping services provided to clients during the past week.
9. Paid casual wages of $4,540 for services provided to the business during the past fortnight.
10. Earned $7,600 for paving services provided to client (of which $5,000 deposit was paid back in May) and balance owing collected this week. Also, earned $2,790 for landscaping during the past week. All money was received in cash except for one client for mowing services, who arranged to pay $300, in 3 weeks' time for services rendered.
11. Paid casual wages $3,670 for services provided to the business during the past fortnight
12. Owner withdrew $4,000 in cash from the business in order to pay for the son's private school fees.