Pro Part Corp

OO 1 2+ Shrh1+

OO’s Lia Unlim Unlim Limtd

Priv/Pub Priv Usually Priv Priv/Pub

Taxation of Pr$f Paid by OO Paid by ptnrs Cp pays

Life of org Lim Lim Indefinite

Equity section OO’s Eq Ptrns’ Eq Shrhs’ Eq

Ivst by OO +d OO’s Cap Ptnrs’ Cap Shr Cap

Profits +d to OO’s Cap Ptrns’ Cap RE

W/d by | dist to OO Dwgs Dwgs Divd

W/d | divd ductd from OO’s Cap Ptnrs’ Cap RE

Name stm Stm OO’s Eq Stm Ptnrs’ RE | Shrh’s Eq

Stm of Cmprhnsive Inc N/A N/A N/(A) Req IFRS

Dr A 🧾 Dr Expn 🧾
Cr c$, L 🧾 Cr A 🧾
Pp Pp Expn

Dr Lia 🧾
Cr L 🧾 Cr Rev 🧾
UnE Rev Dr c$

Dr A 🧾
Cr Rev 🧾
acrl Acr Rev N/A

Dr Expn 🧾
Cr Lia 🧾
Acr Expn N/A

Temp: R,E,Dwg | Perm: A,L,Cap

📈
Cr Expn

🐬
Dr I/S
Cr OO’s Cap
Dr OO’s Cap
Cr Dwgs
123 I/S SOE B/S
Sls Rev

📉
Sls
SRA
Net Sls
$X
X $X
X
COGS X
GP
Op Expn:: X
Sal, Adv, Dep, Amor, Util, Insr, FrO X
Prft from Op
Other Rev
Intr $X
Other Expn
Intr X X
Prft (Loss) $X

OO Cap b△p $X
Add: Ivst by OO $X
Prft (ddct Loss) X X
X
Deduct: Dwgs X
OO’s Cap e△p $X

A
CurrA
C$, S-T Ivst, A/R, MInv, Pp Expn $X
L-T Ivst
Eq Ivst, Debt Ivst X
PPE
Land, Land Imp, Bldg, Equip $X
Less: AD X X
Natural Resc
Oil Wells, Mines, Timberland $X
Less: AD X X
Intangible Assets
Lim Life Intangibles (patents, cpyrt) $X
Less: Acm Amort X
X
Indef life Intgbl (tdmark, franchis) X X
Goodwill X
Ttl Assets $X
L & OE
Lia
Curr Lia
8 N/P, A/P, accruals, UnE R, mtg/P $X
NonCurr Lia
N/P, Mtg/P X
Total Lia X
OO’s Eq
OO’s Cap e△p X
Total L&OE $X
Journalize transactions for John’s Landscape Ltd. Use the trial balance and inventory record to make entries when
needed.
John’s Landscaping
Opening Trial Balance
January 31, 2023

Accounts Debit Credit

Bank 7000

A/R (Aggregate) 30000

Office Supplies 300

Inventory (Aggregate) 12000

Prepaid Insurance 1200

Trucks 45000

Accumulated Amortization - Truck 25000

Equipment 250000

Accumulated Amortization - Equipment 130000

()P (Aggregate) 50000

HST Payable 900

HST Recoverable 400

Loan Payable 4500

John Smith, Capital 9500

Subtotal $345900 $345900

John’s Landscaping
Inventory Record
January 1, 2023

Inventory Category Value Based on Cost Price Value Based on Replacement Cost

Inventory: Tree and Shrub Related $5500 $6500

Inventory: Flowers and Plant Related $2500 $1520

Inventory: Building Material Related $8000 $8250

Subtotal
# Date Transaction Type Transactions Details

1 Feb 15 Conversion of owner’s equity John converts his equity into 100 shares of no par value common
(sole proprietorship) to stock. The business is now incorporated under the name John’s
shareholders’ equity (privately Landscaping of Tokyo Limited. John is the only owner/shareholder
held corporation) and it is considered to be a privately held corporation.

2 Mar 1 Issue of common shares John obtained a corporate charter and issued 20 no par value
(Initial Public Offering) common shares at a price of $200 per share as an IPO.

3 Mar 15 Organizing Costs John issued a $1500 cheque to his lawyer, Bob Loblaw, for his
assistance with incorporating the business

4 Apr 10 Issue of common shares for Lanny hired a new CPA, Mun E. Maker, for advice regarding his
noncash assets growing business. He accepted twenty shares of common stock in
exchange for the inventory management system. The current
market price is $150 per share. Since John knows that technology
changes rapidly, he decides to treat this as an operating
expenditure rather than a capital expenditure.

5 May 1 Declaration of cash dividend John’s Landscaping of Tokyo declares a cash dividend of $2.50 per
share payable to shareholders of record in three weeks.

6 May 29 Payment of previously John’s Landscaping of Tokyo Limited paid the cash dividend that
declared cash dividend was declared on May 1st

7 Jun 1 Establishing the cost of a John purchased land for $20000. He also had to pay a lawyer
capital asset $3000 to complete the transaction. Before the deal was completed,
he also had to pay accrued property taxes of $1500. He also had to
clear the land for $2000, and build a driveway for $1000 so he could
use it for storage of equipment.

8 Jul 30 Amortization and disposal of a John sells an old tractor that he no longer needs. He has had the
capital asset tractor for 5 years and 6 months. The business has been
depreciating it using the straight line method. He bought it for
$20000 and sold it for $10000. He had expected to use it for years
and sell it for $5000 (residual value).

9 Aug 31 Adjusting Entry (Lower of Cost John decides to apply the lower-of-cost and market rule to his
and Market Rule) inventory. The schedule of cost and market prices can be found pg1

10 Sept 1 Declaration of stock dividend To appease shareholders, John’s Landscaping declares a 5% stock
dividend to be distributed on Oct 1. The current share price is $208.

11 Sept 15 Recording Shareholders of All shareholders noted were recorded and noted.
Record

12 Oct 1 Distribution of stock dividend The new shares from the stock dividend that was declared in
September are distributed to the shareholders.

13 Jan 31 Amortization Adjustment Recorded the adjustment for the tractor that was sold in July.