This problem continues the accounting process for Aqua Elite, Inc. from the Continuing Problem in Chapter 2. The trial balance for Aqua Elite, Inc. at June 30, 2013, should look like this:
During July, the following transactions occurred:
Jul 1 Paid three months’ rent, $5,400.
4 Performed service for a customer 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 receptionist’s 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.
1. Journalize the transactions that occurred in July. Omit explanations.
2. Using the four-column accounts from the Continuing Problem in Chapter 2, post the transactions to the ledger creating new ledger accounts as necessary; omit posting references. Calculate the new 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, 2013.
7. Prepare and post closing entries.
8. Prepare a post-closing trial balance for the end of the period.

  • CreatedJuly 08, 2015
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