As the bookkeeper of Pete’s Plowing of Fredericton, you have been asked to complete the entire accounting cycle for Pete from the following information (see the chart of accounts below): 

2018 Jan. 3 Pete invested $7,000 cash and $6,000 worth of snow equipment in the plowing company. 

3 Paid rent in advance for garage space, $2,000. 

5 Purchased office equipment on account from Ling Corp., $7,200. 

6 Purchased snow supplies for $700 cash. 

9 Collected $15,000 from plowing local shopping centres. 

12 Pete Mack withdrew $1,000 from the business for personal use. 

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

26 Paid salaries to employees, $1,800. 

27 Paid Ling Corp. one-half amount owed for office equipment. 

30 Advertising bill was received from Bush Co. but will not be paid until March, $900. 

31 Paid telephone bill, $210. 

Adjustment Data 

a. Snow supplies on hand, $400 

b. Rent expired, $600 

c. Depreciation on office equipment, $120 

d. Depreciation on snow equipment, $100 

e. Accrued salaries, $190

Transcribed Image Text:

$1,440 ($7,200 5 yr. → $120/mo.) 12 mo.