Question

Pool Corporation, Inc., is the world’s largest wholesale distributor of swimming pool supplies and equipment. It is a publicly traded corporation that trades on the NASDAQ exchange under the symbol POOL. It sells these products to swimming pool repair and service businesses, swimming pool builders, and retail swimming pool stores. The majority of these customers are small, family-owned businesses. Pool Corporation completed the following transactions during 2014.The annual accounting period ends December 31, 2014.
Sept.15 Purchased and paid for merchandise for resale at an invoice cost of $125,000; periodic inventory system.
Oct. 1 Borrowed $900,000 from Southwest Bank for general use; signed an 11-month, 5 percent interest-bearing note payable.
Oct. 5 Received a $40,000 customer deposit from Joe Lipscomb for services to be performed in the future.
Oct. 15 Performed $18,000 of the services paid for by Mr. Lipscomb.
Dec. 12 Received electric bill for $12,000. Pool will pay it in early January.
31 Determined wages of $52,000 earned but not yet paid on December 31 (disregard payroll taxes).

Required:
1. Prepare journal entries for each of these transactions.
2. Prepare all adjusting entries required on December 31, 2014.



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  • CreatedJuly 01, 2014
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