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Pure Water, Inc - Course Project final




Question;Begging Trial Balance1. Each account balance should be entered in the General Ledger.--------------------------------------------------------------------------------------Pure Water, Inc.Trial BalanceJune 30.XXXXX30,635Account Receivable dr 2,300Supplies Dr 1,370Land Dr 17,000Furniture 3,600Equipment Dr 2,400Vehicles Dr 35,800Account Payable Cr 4,380Notes Payable Cr 35,800Common Stock Cr 52,500Dividends Dr 5,300Service Revenue Cr 11,600Salaries Expense Dr 2,200Rent Expense Dr 1,800Utilities Expense Dr 1,300Advertising Expense Dr 325Miscellaneous Expense DrXXXXX104,280 Cr 104,280Pure Water, Inc.CHART OF ACCOUNTS - PERPETUAL INVENTORY SYSTEMNORMAL ACCOUNTBALANCE NUMBER ACCOUNT DESCRIPTIONDEBIT 110 Cash in BankDEBIT 120 Accounts ReceivableDEBIT 130 Office Supplies inventoryDEBIT 150 Prepaid RentDEBIT 160 Office FurnitureDEBIT 210 Store EquipmentDEBIT 215 LandDEBIT 220 VehiclesCREDIT 279 Accumulated Depreciation - Store EquipmentCREDIT 289 Accumulated Depreciation - VehiclesCREDIT 299 Accumulated Depreciation ? Office FurnitureCREDIT 310 Accounts PayableCREDIT 315 Salaries PayableCREDIT 320 Unearned RevenueCREDIT 330 Income Taxes PayableCREDIT 340 Notes PayableCREDIT 410 Common StockCREDIT 420 Additional Paid-in CapitalDEBIT 430 DividendsCREDIT 440 Retained EarningsZERO 499 INCOME SUMMARY (special year-end clearing account)CREDIT 510 Service RevenueDEBIT 710 Payroll Tax ExpenseDEBIT 720 Salaries ExpenseDEBIT 730 Rent ExpenseDEBIT 740 Utility ExpenseDEBIT 760 Freight-Out (Delivery Expense)DEBIT 765 Advertising ExpenseDEBIT 770 Insurance ExpenseDEBIT 780 Depreciation Expense - Store EquipmentDEBIT 785 Depreciation Expense - VehiclesDEBIT 790 Supplies ExpenseDEBIT 800 Miscellaneous ExpenseDEBIT 810 Income Tax Expense-----------------------------------------------------------------------------------------------------------------------------------General Journal2. The General Journal should be used to enter each transaction by date. The transactions are for the month of July 2012. Please use the accounts that are listed on the Chart of Accounts only. Include explanations for each entry. The journal sheet may be duplicated for all journal related steps in the accounting cycle. For example, you will need separate sheets for adjusting and closing entries.JulyJuly1 Paid three months? rent, $7,2004 Performed service for a customer and received cash, $2,100.9 Received $2,700 from customers for services to be performed later.12 Purchased $950 of supplies on account.15 Billed customers for services performed, $2,600.16 Paid receptionist?s salary, $55022 Received $3,100 on account.25 Paid $2,000 on account.28 Received $1,600 cash for services performed.30 Paid $900 of dividends.Part 2Requirements1. Journalize the transactions that occurred in July. Omit Explanations.2. Using four-Column account, post the transactions to the ledger creating new ledger accounts as necessary. Omit posting references. Calculate the new account balance at July 31.3. Prepare the unadjusted trial balance for Pure Water, 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, $200.c. Depreciation: $100 equipment, $75 furniture, $330vehicles.d. Services performed but unbilled, $1,900.e. Accrued salaries, $550.f. Unearned service revenue earned as of July 31, $1,000.5. Prepare an adjusted trial balance for Pure Water, Inc., at the end of July.6. Prepare the income statement and statement of retained earnings for the Three-month period May 1 through July 31. 2012. Also prepare a balance sheet at July 31. 20127. Prepare and post-closing entries8. Prepare a post-closing trial balance at July 31. 2012.WorksheetFollowing Step 3, a ten column worksheet should be compiled. The first two columns will consist of the detail from Step 3. The worksheet will be completed simultaneously with Steps 3-5 above in Part III. The worksheet will assist in the preparation of the financial statements in Step 6.Income TaxesIncome taxes should be computed using a 35% tax rate. This information should be placed on the worksheet and on the applicable financial statement(s).Financial StatementsTemplates have been created and should be updated accordingly.


Paper#44074 | Written in 18-Jul-2015

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