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Aqua Elite, Inc.-Because Aqua Elite, Inc. is a new startup business, the beginning




Question;Because Aqua Elite, Inc. is a new startup business, the;beginning balances in all the general ledger accounts are;zero to start.;n The length of the accounting periods are three months;using a fiscal calendar year. (A fiscal calendar is on a;yearly basis other than a calendar year?January 1st to;December 31st. For example, a fiscal calendar year can;be May 1, 2009, through April 30, 2010). Therefore;posting to the general;ledger, adjustments and closing;entries are made on a fiscal quarterly basis.;n Accounts Receivable and Accounts Payable subsidiary;ledgers aren?t being used. Any references to invoicing;receipts, or payments ?on account? assume changes to;the running balance in the Accounts Receivable and;Accounts Payable general ledger accounts.;n Payroll calculations aren?t necessary. Assume the salary;is the gross pay with no deductions taken. Therefore, the;net pay is the same as the gross pay, requiring a simplified;journal entry to record the expense.;n Use the information in the Chart of Accounts that?s;provided after the Requirements section below. Add general;ledger accounts if necessary.;Requirements;1. Journalize the transactions. Omit explanations.;2. Post the transactions to the general ledger, creating new;ledger accounts as necessary. Calculate the new general;ledger account balances.;3. Prepare the unadjusted trial balance for Aqua Elite;Inc.;at the end of July.;4. Journalize and post the adjusting entries for July based;on the following adjustment information;a. Record the expired rent.;b. Supplies on hand, $350.;c. Depreciation: $400 equipment, $210 furniture, $650;vehicles.;d. Services performed but unbilled, $1,900.;e. Accrued salaries, $675.;f. Unearned service revenue earned as of July 31, $800.;5. Prepare an adjusted trial balance for Aqua Elite, Inc.;at;the end of July.;6. Prepare the Income Statement, Statement of Retained;Earnings, and Balance Sheet for the three-month period;May through July 20XX.;7. Prepare, journalize, and post closing entries.;8. Prepare a Post-Closing Trial Balance for the end of the;period.;May;1;Mike invested $15,000 cash and a used truck worth $13,500 in;the business in exchange;for company stock.;3 Paid $4,700 cash to purchase office equipment.;7 Purchased $860 of supplies on account.;12 Performed services for cash customers and received $850.;15 Paid salaries of $675 to the office receptionist.;16 Sold the company truck for $13,500.;18 Signed a note payable for $31,000 to purchase a new;truck.;21 Performed $3,200 of services on account for a local hotel;chain.;27 Paid $500 of the amount owed from the purchase of;supplies on May 7.;30 Received $2,000 on account from credit customers.;31;Received the utility bill for the month of May, $480. The;bill is not due until the 15th;of June.;31 Paid $1,000 dividends to the shareholder, XXXXX XXXXXson.;June;1 Paid receptionist?s salary, $675.;2 Paid cash to acquire land for a future office site;$15,000.;3 Moved into a new location for the business and paid the;first month?s rent, $1,800.;4 Performed service for a customer and received cash;$1,700.;5 Received $500 on account.;8 Purchased $750 of supplies on account.;11 Billed customers for services performed, $3,800.;13 Sold an additional $10,000 of stock to XXXXX XXXXXson.;16 Paid receptionist?s salary, $675.;17 Received $1,350 cash for services performed.;18 Received $1,500 from customers on account.;19 Paid $325 to be listed in the yellow pages telephone;directory.;21 Paid $1,000 on account.;22 Purchased office furniture on account, $3,300.;24 Paid miscellaneous expenses, $275.;26 Billed customers for services provided, $1,000.;28 Received $300 from customers on account.;30 Paid utility bill, $745.;30 Paid receptionist?s salary, $675.;30 Paid $1,800 of dividends.;July;1 Paid three months? rent, $4,500.;4 Performed service for a customer and received cash;$2,100.;9 Received $3,600 from customers for services to be;performed later.;12 Purchased $750 of supplies on account.;15 Billed customers for services performed, $2,800.;16 Paid receptionist?s salary, $675.;22 Received $3,100 on account.;25 Paid $2,800 on account.;28 Received $1,200 cash for services performed.;30 Paid $600 of dividends.;NEEDED;Balance Sheet;Income Statement;Statement of Retained Earnings;Post-Closing Trial Balance


Paper#43246 | Written in 18-Jul-2015

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