Jake owns a lawn maintenance company, and Luke owns a machine repair shop. For the month of July, the following transactions occurred. July 3 Jake provides lawn services to Luke’s repair shop on account, $500.
July 6 One of Jake’s mowers malfunctions. Luke provides repair services to Jake on account, $450.
July 9 Luke pays $500 to Jake for lawn services provided on July 3.
July 14 Luke borrows $600 from Jake by signing a note.
July 18 Jake purchases advertising in a local newspaper for the remainder of July and pays cash, $110.
July 20 Jake pays $450 to Luke for services provided on July 6.
July 27 Luke performs repair services for other customers for cash, $800.
July 30 Luke pays employee salaries for the month, $300.
July 31 Luke pays $600 to Jake for money borrowed on July 14.
Required: Record the transactions for Jake’s Lawn Maintenance Company.

Please see answers in explanation column

Explanation:

Journal to record transactions for Jake’s Lawn Maintenance Company

a) To provide services on account

Date                  Account title                        Debit            Credit

July 3   Accounts receivable                       $500.

 Sales Revenue                                                                    $500.

b) For receiving maintenance on account

July 6   Repairs and maintenance expense     $450

Accounts payable                                                                     $450    

c)For receiving cash on account

July 9     Cash                                 $500      

Accounts receivable                                                       $500

d) For accepting note receivable for loan cash

July 14   Notes receivable                      $600

Cash                                                                                             $600

e)For payment of advertisement for the current month

July 18    Advertising expense                 $110.

  Cash                                                                                             $110.

f) For payment of cash on account

July 20   Accounts Payable                        $450

Cash                                                                                              $450

g) July 27

No entry for  Jake as info concerns  Luke

July 30

h) No entry  Jake as info concerns  Luke

I) For receipt of cash on notes receivable

July 31     Cash                                              $600

Notes Receivables                                                                         $600    

answer; (identity theft);

one of the appeals of a sole proprietorship is that business expenses are kept separate from your personal income tax return