Pool Corporation, Inc., is the world's largest wholesale distributor of swimming pool supplies and equipment. It is
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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. The majority of Pool's customers are small, family-owned businesses. Assume that Pool Corporation completed the following transactions during the current year.
Sept. | 15 | Purchased and paid for merchandise for resale. The invoice amount was $125,000. Assume Pool uses a periodic inventory system. | |
Oct. | 1 | Borrowed $900,000 from Southwest Bank for general use; signed an 11-month, 5% annual interest-bearing note for the money. | |
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 plans to pay the bill in early January. | |
31 | Determined wages of $52,000 earned but not yet paid on December 31 (disregard payroll taxes). |
Required:
1.&2. Prepare journal entries for each of these transactions and all adjusting entries required on December 31.
Related Book For
Financial Accounting
ISBN: 978-1259105692
6th Canadian edition
Authors: Robert Libby, Patricia Libby, Daniel G Short, George Kanaan, Maureen Sterling
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