As the bookkeeper of Pete’s Plowing of Fredericton, you have been asked to complete the entire accounting cycle for Pete from the following information:
2021
Jan.
3 Pete invested $7,000 cash and $6,000 worth of snow equipment in the plowing company.
3 Paid rent in advance for garage space, $2,000.
5 Purchased office equipment on account from Ling Corp., $7,200.
6 Purchased snow supplies for $700 cash.
9 Collected $15,000 from plowing local shopping centres.
12 Pete Mack withdrew $1,000 from the business for personal use.
20 Plowed North East Co. parking lots, payment not to be received until March, $5,000.
26 Paid salaries to employees, $1,800.
27 Paid Ling Corp. one-half amount owed for office equipment.
30 Advertising bill was received from Bush Co. but will not be paid until March, $900.
31 Paid telephone bill, $210.

Adjustment Data
a. Snow supplies on hand, $400.
b. Rent expired, $600.
c. Depreciation on office equipment, $120.

d. Depreciation on snow equipment, $100.

e. Accrued salaries, $190.

Transcribed Image Text:

($7,2005 yr. - $1,440 12 mo. = $120/mo.)