Penny's Pool Service & Supply, Incorporated $($PPSS$)$ is completing the accounting process for the first year of operations ended on December $31.$ Transactions during the year have been journalized and posted. The following trial balance reflects the unadjusted balances on December $31$:a$.$

Penny$$s Pool Service & Supply, Incorporated

Trial Balance on December $31($end of first year of operations$)$

Unadjusted Trial Balance

Debit Credit

Cash $41,765$

Short$-$term investments $6,300$

Accounts receivable $6,500$

Interest receivable

Supplies $26,700$

Prepaid expenses $7,600$

Land $19,300$

Equipment $83,800$

Buildings $73,300$

Accumulated depreciation

Accounts payable $5,400$

Wages payable $530$

Utilities payable

Unearned revenue $27,900$

Interest payable

Income taxes payable

Notes payable $($current$)5,300$

Notes payable $($non$-$current$)80,700$

Common Stock $330$

Additional paid$-$in capital $62,100$

Retained earnings

Pool cleaning revenue $138,650$

Interest revenue $125$

Advertising expense $3,900$

Wages expense $47,300$

Supplies expense

Repairs expense $440$

Utilities expense $3,400$

Insurance expense

Depreciation expense

Property tax expense $730$

Interest expense

Income taxes expense

Totals $321,035321,035$

a$.$ PPSS owed $$8,800$ in wages to the office receptionist and three assistants for working the last $10$ days in December. The employees will be paid in early next year.

b$.$ On October $1$ of the current fiscal year, PPSS received $$27,900$ from customers who prepaid pool cleaning service for one year beginning on November $1$ of the current year.

c$.$ The company received a $$650$ utility bill for December utility usage. It will be paid early next year.

d$.$ PPSS borrowed $$80,700$ from a local bank on August $1,$ signing a one$-$year, $10$ percent note. The note and interest are due on August $1$ of next year.

e$.$ On December $31,$ PPSS cleaned and winterized a customer's pool for $$930,$ but the service was not yet recorded on December $31.$

f$.$ On November $1$ of the current fiscal year, PPSS purchased a two$-$year insurance policy for $$3,600,$ with coverage beginning on that date. The amount was recorded as Prepaid Expenses when paid.

g$.$ On December $31,$ PPSS had $$4,000$ of pool cleaning supplies on hand after purchasing supplies costing $$26,700$ during the year from Pool Corporation, Incorporated.

h$.$ PPSS estimated that depreciation on its buildings and equipment was $$9,600$ for the year.

i$.$ At December $31,$ $$240$ of interest on investments was earned that will be received in the next year.

j$.$ The company's income tax rate for the year was $22$ percent.