Comprehensive Problem 1 Part A

Page 137 COMPREHENSIVE PROBLEM 1 PART A (CHAPTERS 1, 3, 4) COMPREHENSIVE PROBLEM 1 REQUIREMENTS PART A: () Prepare journal entries to record the October 2019 transactions listed on the follow the chart of accounts for the appropriate account titles to use). Prepare a se each transaction and leave a space after each entry! Check figure: Toto s listed on the following page (refer to Prepare a separate journal entry for Check figure: Total debits = $112,705. OPTIONAL: Post the journal entries to the T-accounts and calculate the accoun unadjusted trial balance. Check figures Cash balance = $26.155) Trial balance to and calculate the account balances. Prepare an $26,155) Trial balance total debits = $86,190. (2) Prepare adjusting journal entries in the dated October 31): Journal entries in the general journal based on the following information (all AJES of $4,000 per week. Assuming a Monday - Friday workweek, accrue (a) The computers and mobile devices her and mobile devices have a useful life of 3 years. Record one month of depreciatio (b) The truck has a useful life of 5 years Record one month of depreciation. (c) There were $315 of supplies on hand at the end of the month. (d) Record insurance expired for one month. (e) Employees earn salaries & wages of $4.000 per week Assuming a Monday - Friday we wages and salaries for October 28-31 By the end of October, one month of cleaning services has been performed for La Playa High for which payment had been received in advance on October 24 g) on October 31, Sparkle performed cleaning services for a local athletic club. The client will be billed in November, $425. (h) Annual interest on the note payable is 7%. Record accrued interest for October. (1) Income taxes to accrue for October are estimated to be $490. has been performed for La Playa High School, Check figure: Total Debits = $6,090. OPTIONAL: Post the adjusting entries to the T-accounts and calculate the account balances. Prepare an adjusted trial balance. Check figure: Total Debits = $91,100. 3 4 5 6 7 8 9 0 COMPREHENSIVE PROBLEM 1 PART A (CHAPTERS 1, 3, 4) Page 138 Transactions Oct. 1 Sparkle Pool & Spa Services, Inc. began business by selling 40,000 shares of $1 par value common stock for $40.000 2 Purchased a Ford F150 truck for $33,000. Paid $9,000 down and signed a promissory note for the remainder 3 Paid $250 to advertise in the local newspaper. The newspaper published all of the ads in October 4 Paid $1,275 to rent an office and storage space for October Purchased supplies on account from Pool Supplies Superstore, $1,120. 7 7 Purchased a two-year liability insurance policy for $1,800. 8 Purchased computers and mobile computing devices on account, $3,780. 9 Provided pool cleaning services for customers and received $4,300 cash. 11 Paid employee salaries and wages for October 1 - 11 of $3,600 16 Performed pool maintenance and cleaning services for local hotels. The services were provided on account. $11,500. 18 Received and paid an invoice for $850 from LegalZoom for legal fees related to the set up of the corporation 24 Received $1,500 cash in advance from La Playa High School for five months of future cleaning services to be performed on the high school's pool. 25 Paid employee salaries, $4,000 for the payroll period ending Friday, October 25. 26 Received $2,500 cash from one of the local hotels for payment on their account 28 Paid for the supplies previously purchased on October 7 from Pool Supplies Superstore. 29 Performed repair services on a spa and received $750 cash from a customer. 30 Received utility bills, (water, electric, gas, etc.) for the month totaling $360. Bills will be paid in November 31 Declared and paid cash dividends to the stockholders, $1,000. Page 140 COMPREHENSIVE PROBLEM 1 PART A (CHAPTERS 1. 3, 4) GENERAL JOURNAL DESCRIPTION DEBIT CREDIT DATE 2019 110f Cash Common St 40,000 33,000 110/2 Equipment 9.000 24,000 Notes Robe. (33.00 -2,00 250 110/3 Advertising Expense Cash 250 I 1,275 (10/4 Rent Expense I Cash 1,275 120 (10/7 Supplies I Accounts Payable 10/7 Prepaid - Cash Insurance 1.800 1.800 3,780 110/8 - Equipment Accounts Payable 3,780 (10/9 4,300 Cash Service Revenue 4,300 10/11 Salaries and Whoes Expense Cash 3,600 3,600 Page 141 COMPREHENSIVE PROBLEM 1 PART A (CHAPTERS 1, 3, 4). GENERAL JOURNAL O per le DESCRIPTION DEBIT Post DATE CREDIT 2019 (10/16 1,500 Accounts Receivable Service Revenue 1,500 9.50 10/18 Legal Counsul Expense Cash SOD (10/24 Cash STCOS I Unearned 1,500 Service Revenue 10/25 4,000 Salaries and Wages Expense Cash I 4,000 10/26 2,500 Cash Accounts Receivable 2.500 I 14120 10/28 Accounts Payable Expenses 1,120 10/29 750 T Cash Service Revenue 750 360 (10/30 Utility Expense Accounts Payable 360 1,000 1,000 110/31 Dividends - Cash Page 146 COMPREHENSIVE PROBLEM 1 PART A (CHAPTERS 1, 3, 4) SPARKLE POOL & SPA SERVICES, INC. UNADJUSTED TRIAL BALANCE OCTOBER 31, 2019 ACCOUNT TITLES DEBIT CREDIT Cash Accounts Receivable Prepaid Insurance Supplies Truck Computers Notes Payable Accounts Payable Unearned Service Revenue Common Stock Dividends Service Revenue Salaries & Wages Expense Advertising Expense Utilities Expense Rent Expense Legal Fees Expense TOTALS Page 147 CREDIT COMPREHENSIVE PROBLEM 1 PART A (CHAPTERS 1, 3, 4) SPARKLE POOL & SPA SERVICES, INC. ADJUSTED TRIAL BALANCE OCTOBER 31, 2019 ACCOUNT TITLES DEBIT Cash Accounts Receivable Prepaid Insurance Supplies Truck Accumulated Depreciation-Truck Computers Accumulated Depreciation-Computers Notes Payable Accounts Payable Unearned Service Revenue Interest Payable Salaries & Wages Payable Income Taxes Payable Common Stock Dividends Service Revenue Salaries & Wages Expense Advertising Expense Insurance Expense Utilities Expense Rent Expense Supplies Expense Legal Fees Expense Depreciation Expense Interest Expense Income Taxes Expense TOTALS