с 4 Equipment (144), Accounts Payable (212), Accruals Payable (213), Note Payable (215), Capital Stock (311), Retained Earnings (312), Service Revenue (411), Rent Expense (511), Utility Expense (512)... Add other accounts as necessary (7 titles). 2. Draft journal entries to record the December transactions and December adjustments considered appropriate. Descriptions are stated below; do not record descriptions. 3. Post December journal entries to ledger accounts. References are necessary. 4. Prepare an adjusted trial balance from ledger accounts for the month of December. 5. From trial balance, prepare an income statement, statement of shareholder's equity, and a balance sheet of December 31, 20x4. (No cash flow statement) 6. Draft closing entries. Do NOT post the closing entries. 1 Pool business began with deposit of $6,000 in a company bank account; 50 shares of stock were issued to the owner of the corporation in exchange for cash. Pool paid the premium on a one-year insurance policy, $600. Pool paid December's rent, $500. 234 3 10 5 15 20 29 DECEMBER TRANSACTIONS & ADJUSTMENTS 31 31 31 31 Repair equipment was purchased for $2,200 by a $200 down payment plus signing a non-interest bearing note payable at $100 per month for twenty months, starting January 1. The equipment will operate 40 months before replacement. Pool purchased chemical supplies from Cordero Company for $195 on an account payable in 30 days. Pool received $600 of cash deposits from clients as advance payment for pool service to be provided in December. Pool paid $100 of the amount owed to Cordero Company for chemicals. Pool's owner took $300 from the company for personal expenses. The owner claimed this was NOT to be a wage or salary. Pool received a utility bill for the month of December, $90. This will be paid in January of the next year. Pool deposited $700 of service revenue earned in December. In addition, $400 of the client deposits were earned as of December 31. The inventory of unused pool chemicals was $90 at the end of December. Pool Corporation estimates income taxes are $160 for December. Tax payments will be made quarterly, starting next February.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Please assist with Questions 4, 5, & 6 please.

Account Account
Number Name
Cash
111
112
ADJUSTED TRIAL BALANCE
114
121
122
211
212
213
221
311
312
313
411
511
512
513
514
515
| Accounts Receivable
Prepaid Insurance
Chemical Supplies
Equipment
| Accumulated Depreciation.
Accounts Payable
Accruais Payable
Uneamed Revenue
Note Payable
Capital Stock
Retained Earnings
Dividends
Service Revenue
Unities Expense
|Supples Expense
Insurance Experen
Depreciation Expenal
Tax Expense
FINANCIAL STATEMENTS
INCOME STATEMENT
Credit
STATEMENT OF SHAREHOLDER EQUITY
Balance Sheet
as of December 21
Transcribed Image Text:Account Account Number Name Cash 111 112 ADJUSTED TRIAL BALANCE 114 121 122 211 212 213 221 311 312 313 411 511 512 513 514 515 | Accounts Receivable Prepaid Insurance Chemical Supplies Equipment | Accumulated Depreciation. Accounts Payable Accruais Payable Uneamed Revenue Note Payable Capital Stock Retained Earnings Dividends Service Revenue Unities Expense |Supples Expense Insurance Experen Depreciation Expenal Tax Expense FINANCIAL STATEMENTS INCOME STATEMENT Credit STATEMENT OF SHAREHOLDER EQUITY Balance Sheet as of December 21
DEC
20x4
1. Chart of Accounts: Cash (111), Prepaid Insurance (117), Chemical Supplies (119),
Equipment (144), Accounts Payable (212), Accruals Payable (213), Note Payable (215),
Capital Stock (311), Retained Earnings (312), Service Revenue (411), Rent Expense (511),
Utility Expense (512)... Add other accounts as necessary (7 titles).
2. Draft journal entries to record the December transactions and December adjustments
considered appropriate. Descriptions are stated below; do not record descriptions.
3. Post December journal entries to ledger accounts. References are necessary.
4. Prepare an adjusted trial balance from ledger accounts for the month of December.
5. From trial balance, prepare an income statement, statement of shareholder's equity, and
a balance sheet of December 31, 20x4. (No cash flow statement)
6. Draft closing entries. Do NOT post the closing entries.
1
2
AWN
3
4
5
15
20
29
31
31
31
31
DECEMBER TRANSACTIONS & ADJUSTMENTS
Pool business began with deposit of $6,000 in a company bank account;
50 shares of stock were issued to the owner of the corporation in exchange for cash.
Pool paid the premium on a one-year insurance policy, $600.
Pool paid December's rent, $500.
Repair equipment was purchased for $2,200 by a $200 down payment plus signing a
non-interest bearing note payable at $100 per month for twenty months, starting
January 1. The equipment will operate 40 months before replacement.
Pool purchased chemical supplies from Cordero Company for $195 on an account
payable in 30 days.
Pool received $600 of cash deposits from clients as advance payment for pool
service to be provided in December.
Pool paid $100 of the amount owed to Cordero Company for chemicals.
Pool's owner took $300 from the company for personal expenses. The owner
claimed this was NOT to be a wage or salary.
Pool received a utility bill for the month of December, $90. This will be paid in
January of the next year.
Pool deposited $700 of service revenue earned in December. In addition, $400 of
the client deposits were earned as of December 31.
The inventory of unused pool chemicals was $90 at the end of December.
Pool Corporation estimates income taxes are $160 for December. Tax payments will
be made quarterly, starting next February.
Transcribed Image Text:DEC 20x4 1. Chart of Accounts: Cash (111), Prepaid Insurance (117), Chemical Supplies (119), Equipment (144), Accounts Payable (212), Accruals Payable (213), Note Payable (215), Capital Stock (311), Retained Earnings (312), Service Revenue (411), Rent Expense (511), Utility Expense (512)... Add other accounts as necessary (7 titles). 2. Draft journal entries to record the December transactions and December adjustments considered appropriate. Descriptions are stated below; do not record descriptions. 3. Post December journal entries to ledger accounts. References are necessary. 4. Prepare an adjusted trial balance from ledger accounts for the month of December. 5. From trial balance, prepare an income statement, statement of shareholder's equity, and a balance sheet of December 31, 20x4. (No cash flow statement) 6. Draft closing entries. Do NOT post the closing entries. 1 2 AWN 3 4 5 15 20 29 31 31 31 31 DECEMBER TRANSACTIONS & ADJUSTMENTS Pool business began with deposit of $6,000 in a company bank account; 50 shares of stock were issued to the owner of the corporation in exchange for cash. Pool paid the premium on a one-year insurance policy, $600. Pool paid December's rent, $500. Repair equipment was purchased for $2,200 by a $200 down payment plus signing a non-interest bearing note payable at $100 per month for twenty months, starting January 1. The equipment will operate 40 months before replacement. Pool purchased chemical supplies from Cordero Company for $195 on an account payable in 30 days. Pool received $600 of cash deposits from clients as advance payment for pool service to be provided in December. Pool paid $100 of the amount owed to Cordero Company for chemicals. Pool's owner took $300 from the company for personal expenses. The owner claimed this was NOT to be a wage or salary. Pool received a utility bill for the month of December, $90. This will be paid in January of the next year. Pool deposited $700 of service revenue earned in December. In addition, $400 of the client deposits were earned as of December 31. The inventory of unused pool chemicals was $90 at the end of December. Pool Corporation estimates income taxes are $160 for December. Tax payments will be made quarterly, starting next February.
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Hello! thank you for answering. May I ask why on the adjusted trial balance you put 50 in insurance expense?

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