Grover Landscapes Ltd. began operations January 1,2022. The first year of operations included the following selected events and transactions:
January:
1. The owners invested $400,000 cash into the business.
2. Grover purchased a building for the business at a cost of $125,000 paying $25,000 in cash and the balance by signing a 5-year bank note.
3. Grover purchased various landscaping equipment at a total cost of $25,000, paying cash for the full amount
April:
4. Grover hired a supervisor at an annual salary of $54,000 and two employees, each of whom will earn $40,000 per year.
5. Grover earned $25,000 in revenue for the month all of which was on credit.
6. The supervisor and employees were paid their salary for the month (ignore taxes and other deductions).
May:
7. Collected one-half of the amount that was due to Grover from April
8. Purchased supplies at a cost of $5,000 all on credit, all of which were used up during the month of May
9. Estimated depreciation expense for the period on the building and equipment to be $2,000 and $1,200 respectively
10. Paid for general administrative costs and expenses for the period totalling $1,200
Based on this information prepare an Income Statement for Grover Landscapes Ltd. as of May 30th.
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