As the bookkeeper of Pat's Plowing, you have been asked to complete the entire accounting cycle for Pat from the following information.

201X

Jan. 1 Pat invested $16,000 cash and $10,200 worth of snow equipment into the plowing company.

1 Paid rent 6 months in advance for garage space, $2,400.

4 Purchased office equipment from Lang Corp. for $12,000 on account.

6 Purchased snow supplies for $300 cash.

8 Collected $8,000 from plowing local shopping centers.

12 Pat Munro withdrew $8,000 from the business for personal use.

20 Plowed Hayfield parking lots, payment not to be received until March, $5,000.

26 Paid salaries to employees, $2,200.

28 Paid Lang Corp. one-half amount owed for office equipment.

29 Advertising bill received from Taft Co. but will not be paid until March, $800.

30 Paid telephone bill, $140.

Use the following chart of accounts.

Chart of Accounts

Assets

111 Cash

112 Accounts Receivable

114 Prepaid Rent

115 Snow Supplies

121 Office Equipment

122 Accumulated Depreciation, Office Equipment

123 Snow Equipment

124 Accumulated Depreciation, Snow Equipment

Liabilities

211 Accounts Payable

212 Salaries Payable

Owner's Equity

311 P, Munro, Capital

312 P, Munro, Withdrawals

313 Income Summary

Revenue

411 Plowing Fees

Expenses

511 Salaries Expense

512 Advertising Expense

513 Telephone Expense

514 Rent Expense

515 Snow Supplies Expense

516 Depreciation Expense, Office Equipment

517 Depreciation Expense, Snow Equipment

Adjustment Data

a. Snow supplies on hand, $100.

b. Rent expired, $400.

c. Depreciation on office equipment, $200: ($12,000/5 yr. = $2,400/12 mo. = $200).

d. Depreciation on snow equipment, $170:

($10,200/5 yr. = $2,040/12 mo. = $170).

e. Accrued salaries, $150.