Great Gardens, Inc

question 175

Essay

Great Gardens, Inc., had the following transactions during its first month of operations:
May 1 Great Gardens received $20,000 cash and issued common stock to the stockholders.
May 1 Paid the May rent, $1,000.
May 3 Purchased equipment on account for $6,000.
May 5 Purchased gardening supplies for $2,000 on account.
May 8 Performed services for a client and received cash of $1,800.
May 12 Performed services for a client and billed the customer $12,200. The customer promised to pay within 10 days.
May 15 Paid for the equipment purchased May 3 on account.
May 22 Received payment from a customer on account, $12,200.
May 28 Borrowed $20,000 from First National Bank for business use.
May 30 Paid the employee salaries of $3,000 for the month.
May 31 Paid the utility bill of $800.
Required: Record the transactions of the business in a journal. Include an explanation for each entry.

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Definitions:

Labor-Force Participation

The fraction of the population of working age that is engaged in employment or in the search for a job.

Prime Working Age

The age range typically considered most productive and desirable for employment, often defined as 25 to 64 years.

Labor-Force Participation Rate

The percentage of the adult population that is in the labor force

Teenagers

A demographic group consisting of individuals typically aged between 13 and 19 years, characterized by physiological and psychological development from childhood to adulthood.