DEC 20x4 2. Draft journal entries to record the December transactions and December adjustments considered appropriate. Descriptions are stated below; do not record descriptions. 3. Post December journal entries to ledger accounts. References are necessary. 4. Prepare an adjusted trial balance from ledger accounts for the month of December. 5. From trial balance, prepare an income statement, statement of shareholder's equity, and a balance sheet of December 31, 20x4. (No cash flow statement) 6. Draft closing entries. Do NOT post the closing entries. 1 Pool business began with deposit of $6,000 in a company bank account; 50 shares of stock were issued to the owner of the corporation in exchange for cash. 2 Pool paid the premium on a one-year insurance policy, $600. 234 3 5 15 20 29 31 31 31 ب بن DECEMBER TRANSACTIONS & ADJUSTMENTS 31 Pool paid December's rent, $500. Repair equipment was purchased for $2,200 by a $200 down payment plus signing a non-interest bearing note payable at $100 per month for twenty months, starting January 1. The equipment will operate 40 months before replacement. Pool purchased chemical supplies from Cordero Company for $195 on an account payable in 30 days. Pool received $600 of cash deposits from clients as advance payment for pool service to be provided in December. Pool paid $100 of the amount owed to Cordero Company for chemicals. Pool's owner took $300 from the company for personal expenses. The owner claimed this was NOT to be a wage or salary. Pool received a utility bill for the month of December, $90. This will be paid in January of the next year. Pool deposited $700 of service revenue earned in December. In addition, $400 of the client deposits were earned as of December 31. The inventory of unused pool chemicals was $90 at the end of December. Pool Corporation estimates income taxes are $160 for December. Tax payments will be made quarterly, starting next February.

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter21: Accounting For Accruals, Deferrals, And Reversing Entries

Section21.1: Accruals

Problem 1OYO

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Please assist with this assignment. All accounts needed are shown in the T accounts image.

DEC
20x4
2. Draft journal entries to record the December transactions and December adjustments
considered appropriate. Descriptions are stated below; do not record descriptions.
3. Post December journal entries to ledger accounts. References are necessary.
4. Prepare an adjusted trial balance from ledger accounts for the month of December.
5. From trial balance, prepare an income statement, statement of shareholder's equity, and
a balance sheet of December 31, 20x4. (No cash flow statement)
6. Draft closing entries. Do NOT post the closing entries.
1
2
3
4
5
15
20
29
31
31
31
31
DECEMBER TRANSACTIONS & ADJUSTMENTS
Pool business began with deposit of $6,000 in a company bank account;
50 shares of stock were issued to the owner of the corporation in exchange for cash.
Pool paid the premium on a one-year insurance policy, $600.
Pool paid December's rent, $500.
Repair equipment was purchased for $2,200 by a $200 down payment plus signing a
non-interest bearing note payable at $100 per month for twenty months, starting
January 1. The equipment will operate 40 months before replacement.
Pool purchased chemical supplies from Cordero Company for $195 on an account
payable in 30 days.
Pool received $600 of cash deposits from clients as advance payment for pool
service to be provided in December.
Pool paid $100 of the amount owed to Cordero Company for chemicals.
Pool's owner took $300 from the company for personal expenses. The owner
claimed this was NOT to be a wage or salary.
Pool received a utility bill for the month of December, $90. This will be paid in
January of the next year.
Pool deposited $700 of service revenue earned in December. In addition, $400 of
the client deposits were earned as of December 31.
The inventory of unused pool chemicals was $90 at the end of December.
Pool Corporation estimates income taxes are $160 for December. Tax payments will
be made quarterly, starting next February.

Ledger
T-accounts
Cash
Accounts Receivable #112
Prepaid Insurance # 113
Chemical Supplies
Equipment
# 111
Utilities Expense
# 114
Accumulated Depreciation #122
# 121
Tax Expense
# 511
Supplies Expense # 512
Insurance Expense #513
Depreciation Expense # 514
#515
Accounts Payable
Accruals Payable
Unearned Revenue
Note Payable
Capital Stock
Retained Earnings
Dividend
Service Revenue
# 211
# 212
# 213
#221
# 311
# 312
#313
# 411

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shouldn't there also be an adjustment for depreciation of equipment and the insurance? the total of my adjusted trial balance for dr and cr came out to 9,700 with those adjustments included. Please let me know if this is correct.

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