05-01task (5)

School: Troy University, Troy - Course: HIS 101 - Subject: Accounting

5.01 Opening a Checking Account (69 Points) Part 1 (48 points) Your task will be to journalize the beginning transactions of a new business. John Doe opened Does' Grass Cutting business.Below is the information for the company during the first 8 days of operation.Complete the journal entry for each transaction. The accounts you will use are:Cash, Accounts Receivable, John Doe-Capital, and Lawn Service Revenue Date: 6/1/2020 Transaction: John Doe opened a business checking account in the name of his new business, Doe's Grass Cutting, by investing/depositing $5,000 of his own money into the account. DateAccountDebitCredit 6/1/2020John Doe-capital$5,000 6/1/2020Lawn services revenue$5,000 Date: 6/2/2020 Transaction: On his first day of business, he received $200 in cash and checks for his grass cutting services; this amount was deposited into the account. DateAccountDebitCredit 6/2/2020cash$200 6/2/2020Lawn services revenue$200 Date: 6/3/2020 Transaction: The next day, Mr. Doe cut Jane Smith's grass, but he allowed her to charge the $100 services with a promise to pay at end of the week; he wants a record of this receivable now as a reminder to collect the amount due. DateAccountDebitCredit 6/3/2020Accounts receivable$100 6/3/2020cash$100

Date: 6/5/2020 Transaction: Business is doing great. John cut grass all day and received $300 for his services; this amount was deposited into the account. DateAccountDebitCredit 6/5/2020cash$300 6/5/2020Accounts receivable$300 Date: 6/5/2020 Transaction: As promised, Jane Smith paid her $100 grass cutting fee that John Doe allowed her to charge last week; the money is now in hand and can be deposited into the bank account (related to transaction #3 above). DateAccountingDebitCredit 6/5/2020Accounts receivable$100 6/5/2020cash$100 Date: 6/8/2020 Transaction: The day's receipts of cash and checks were $150 for grass cutting services; this amount was deposited. DateAccountingDebitCredit 6/8/2020Lawn service revenue$150 6/8/2020cash$150 Part 1 (9 points) 1.Explain the advantages to a business of keeping cash in a bank account. It can keep you legally compliant, provide some financial security and help you appear more professional to customers and vendors. 2.Why are endorsements required on a check? It simultaneously helps to verify you as the proper recipient of the funds and authorizes the bank to complete the transaction. 3.Who is the endorser? Who is the endorsee?