INSTRUCTIONS
Use the explanation below and the information in the assumption section to omplete the steps in the requirements for this accounting project.
Mike Hanson recently left his job at a local pool company to open his own pool and spa maintenance business. XXXXX XXXXXson took all of the money he and his wife had in their personal savings account and used it to open Aqua Elite, Inc., are true and accurate.
ASSUMPTIONS
*Because Aqua Elite, Inc. is a new start up business, the beginning balances in all the general ledger accounts are zero to start.
*The lenght of the accounting periods are three months using a fiscal calendar year.(Afiscal calendar is on a yearly basis other than than a calendar year-January 1st to December 31st. For example, a fiscal calendar year can be May 1, 2009, through April 30, 2010). Therefore, posting are made on a fiscal quarterly basis.
*Accounts Receivevable and Accounts Payable subsidiary ledgers aren't being used. Any reference to invoicing, receipts, or payments "on account" assume changes to the running balance in the Accounts Receivable and Accounts Payable general ledger accounts.
*Payroll calculations aren't neccessary. Assume the salary is the gross pay with no deductions taken. Therefore, the net pay is the same as the gross pay, requiring a simplified journal entry to record the expense.
*Use the information in the chart of Accounts that's provided after Requirements section below. Add general ledger accounts if neccessary.
Requirements
1.Journalize the transactions. Omit explanations.
2.Post the transactions to the general ledger, creating new ledger accounts as neccessary. Calculate the new general ledger account balances.
3.Prepare the unadjusted trial balance for Aqua Elite, Inc., at the end of July.
4.Journalize and post the adjusting entries for July based on the following adjustment information:
a.Record the expired rent.
b.Supplies on hand, $350.
c.Depreciation: $400 equipment, $210 furniture, $650 vehicles.
d.Services performed but unbilled, $1,900.
e.Accrued salaries, $675.
f.Unearned service revenue earned as of July 31, $800.
5.Prepare an adjusted trial balance for Aqua Elite, Inc., at the end of July.
6.Prepare the Income Statement, Statement of Retained Earnings, and Balance Sheet for the three-month period May through July 20XX.
7.Prepare, Journalize, and post closing entries.
8.Prepare a Post-Closing Trial Balance for the end of the period.
May
1 Mike invested $15,000 cash and used truck worth $13,500 in the business in exchange for company stock.
3 Paid $4,700 cash to purchase office equipment.
7 Purchased $860 of supplies on account.
12 Performed services for cash customers and received $850.
15 Paid salaries of $675 to the office receptionist.
16 Sold the company truck for $ 13,500.
18 Signed a note payable for $31,000 to purchase a new truck.
21 Performed $3,200 of services on account for a local hotel chain.
27 Paid $500 of the amount owed from the purchase of supplies on May 7.
30 Received $2,000 on account from credit customers.
31 Received the utility bill for the month of May, $480. The bill is not due untill the 15 of june.
31 Piad $1,000 dividends to the shareholders, XXXXX XXXXXson.
June
1 Paid receptionist's salary, $675.
2 Paid cash to acquire land for a future office site, $15,000.
3 Moved into a new location for the business and paid the first month's rent, $1,800.
4 Performed service for a customers and received cash, $1,700.
5 Received $500 on account.
8 Purchased $750 of supplies on account.
11 Billed customers for services performed, $3,800.
13 Sold an additional $10,000 of stock to XXXXX XXXXXson.
16 Paid receptionist's salary, $675.
17 Received $1,350 cash for services performed.
18 Received $1,500 from customers on account.
19 Paid $325 to be listed in the yellow pages telephone diretory.
21 Paid $1,000 on account.
22 Purchased office furniture on account, $3,300.
24 Paid miscellaneous expenses, $275.
26 Billed customers for services provided, $1,000.
28 Received $300 from customers on account.
30 Paid utility bill, $745.
30 Paid receptionist's salary, $675.
30 Paid $1,800 of dividends.
July
1 Paid three months' rent, $4,500.
4 Performed service for a customers and received cash, $2,100.
9 Received $3,600 from customers for services to be performed later.
12 Purchased $750 of supplies on account.
15 Billed customers for services performed, $2,800.
16 Paid receptionists' salary, $675.
22 Received $3,100 on account.
25 Paid $2,800 on account.
28 Received $1,200 cash for services performed.
30 Paid $600 of dividends.