Penn Foster Project (Graded A+) - 19152

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Price: $20.00
  • From: Business,
  • Posted on: Sun 21 Jul, 2013
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Request Description

I need help with the following Accounting project.



Use the explanation below and the information in the

assumptions section to complete the steps in the  requirements

for this accounting project.

XXXXX XXXXXson recently left his job at a local pool company

to open his own pool and spa maintenance

business. XXXXX XXXXXson took all of the money he and

his wife had in their personal savings account and

used it to open Aqua Elite, Inc., on May 1, 20XX.

Assume that the following transactions for the first three

months of operations for the Hanson's Aqua Elite, Inc., are

true and accurate.



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

beginning balances in all the general ledger accounts are

zero to start.

*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.

*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.

*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.



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


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




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.


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.


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


The final project MUST include:

*Balance Sheet

*Income Statement

*Statement of Retained Earnings

*Post-Closing Trial Balance



Solution Description


General ledgers.docx
General ledgers...