Bill’s Lawn Care Module 1 Mini Practice Problem

Bill’s Lawn Care Module 1 Mini Practice Problem


Bill Graham started his career mowing lawns for neighbors while he was in junior high school.  Bill worked summers for the local golf course while he was in high school and now that he has graduated, he is starting his own lawn care business.  You are taking an accounting class at the local community college and have agreed to help Bill set up and maintain the accounting records for his new business.  He has set up a checking account in the business name, Bill’s Lawn Care, at the local bank.  After some discussion with you, Bill has decided to set the business up as a sole proprietorship.  You and Bill established a chart of accounts to be used in recording the business transactions.  In May, 2014, the following activities occur at Bill’s Lawn Care.


May 1             Bill withdraws $20,000 from his savings account and deposits it in the business’ bank account.


May 2             Bill purchases a used truck for $7,000 to use for the lawn care business, he writes a check for $3,500 and signs a 1 year, 6% note for the balance.


May 5             Bill purchases a lawn mower for $300 and an aerator for $500 and writes a check for the total amount.


May 6             Bill writes a $600 check for a six month insurance policy that expires           October 31, 2014


May 7             Bill establishes a $1,000 line of credit account with Jones Fuel, a local gas station.


May 8             Bill writes a check for $50 for a weekly advertisement in the local newspaper.  The advertisement will run every Friday through the end of May, 2014.


May 16           At the end of the first week, Bill has earned $600 for lawn care services.  Of the $600, $500 was paid in cash and $100 was on credit.


May 23           At the end of the second week, Bill has earned $1,100 for lawn care services.  Of the $1,100, $700 was paid in cash and $400 was on credit.


May 26           Bill writes a check for $75 to have the mower blade sharpened.


May 30           At the end of the third week, Bill has earned $1,000 for lawn care services.  Of the $1,000, $800 was paid in cash and $200 was on credit.


May 31           Bill receives payments, on account, in the amount of $500


May 31           Bill receives his monthly invoice and writes a check for $400 to Jones Fuel.


May 31           Bill writes a check to himself for $1,500 for personal expenses.





1.      Using the chart of accounts provided below, and the Excel template provided with this assignment,prepare journal entries, in good form, to record the May transactions.  Explanations are optional.

2.      Post the journal entries to general ledger accounts.

3.      Prepare a trial balance as of May 31, 2014, for Bill’s Lawn Care.


Bill’s Lawn Care

Chart of Accounts


Account Number

Account Name






Accounts Receivable






Prepaid Insurance






Accumulated Depreciation – Equipment



Accounts Payable



Notes Payable



Interest Payable



Owner’s Capital



Owner’s Drawings



Lawn Service Revenue



Supplies Expense



Fuel Expense



Repair and Maintenance Expense



Advertising Expense



Insurance Expense



Depreciation Expense



Interest Expense



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