Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2. Prepare a multiple-step statement of earnings for the quarter ended September 30, 2019, based only on these quarterly transactions PENNY'S POOL SERVICE & SUPPLY,

image text in transcribed
image text in transcribed
2. Prepare a multiple-step statement of earnings for the quarter ended September 30, 2019, based only on these quarterly transactions PENNY'S POOL SERVICE & SUPPLY, INC. Statement of Earnings (Unadjusted) For the Quarter Ended September 30, 2019 Operating expenses: 0 0 Total operating expenses Earnings from operations Other items: $ 0 Eamings before income taxes YUMB Portal Home Homepage - 2021W BA 121553010 Seved Help Say Penny's Pool Service & Supply Inc. (PPSS) had the following transactions related to operating the business in its first year's busiest quarter ended September 30, 2019: 0 a. Placed and paid for $2,600 in advertisements with several area newspapers (including the online versions, all of which ran in the newspapers during the quarter. b. Cleaned pools for customers for $19,200, receiving $16,000 in cash with the rest owed by customers who will pay when billed in October c. Paid Pool Corporation, a pool supply wholesaler, $10,600 for inventory received by PPSS in May. d. As an incentive to maintain customer loyalty, PPSS offered customers a discount for prepaying next year's pool cleaning service PPSS received $10,000 from customers who took advantage of the discount. e. Paid the office receptionist $4,500, with $1,500 owed for work in the prior quarter and the rest for work in the current quarter. The amount due for work completed last quarter was recorded as an expense and a liability, wages payable. f. Pald $310 to a mechanic to repair the company van. g. Paid $220 for phone, water, and electric utilities used during the quarter. h. Received $75 cash in interest earned during the current quarter on short-term investments. 1. Received a property tax bill for $600 for use of the land and building in the quarter; the bill will be paid next quarter J. Pald $2,400 for the next quarter's Insurance coverage. Required: 1. Prepare journal entries to record the above transactions, (if no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions.) View transaction list View journal entry worksheet General Journal Deba 2.500 No Transaction 2.600 1 a. Advertising expense Cash 16.000 3.200 b 19.200 2 Cash Accounts receivable Pool cleaning revenue

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Endangered Economies How The Neglect Of Nature Threatens Our Prosperity

Authors: Geoffrey Heal

1st Edition

0231180845, 9780231180849

More Books

Students also viewed these Accounting questions