Credit Debit $ 560,000 65,000 25,000 125.000 20.000 147,000 2,000 Account Titles Cash and cash equivalents Accounts receivable Supplies Product Inventory Prepaid insurance Equipment Other non-current asueta, net Accumulated depreciation Accounts payable Interest payable Rent payable Wages payable Property tax payable Long term notes payable Capital Retained earningo $ 21,000 25,000 0 0 7,000 12,000 30,000 500,000 245.000 5340,000 $940.000 The following transactions occurred during the financial year 2020: a. A retail pool customer pays his outstanding balance of $5,500 to Pool Corporation b. Supplies purchased in Cash amounting $460 c. Pool Corporation purchases Product Inventory in Cash amounting to $5,000. d. Pald wages in cash amounting to $7,800. e. Pool Corporation purchased equipment worth $4,000 and paid immediately. 1. Pool Corporation paid $2.400 cash for the premium on a 12th month insurance policy beginning from December 2020. g. Pool Corporation paid $200 towards general repairs in cash. h. Pool Corporation paid $2,800 cash towards Utilities. 1. Pool Corporation paid $150 towards transportation for one of the equipment as per the sale agreement. J. Pool Corporation purchased Product Inventory for $26,000 Cash k. Pool Corporation owed $1,000 wages to the office receptionist and three assistants for working the last two days in December 2020. The employees will be paid in January 2021 On October 1, 2020, Pool Corporation received $24,000 from customers who prepaid pool cleaning service for one year beginning on November 1, 2020. m. Pool Corporation received a $570 utility bill for December utility usage. It will be paid in January 2021. n. Pool Corporation borrowed $30,000 from a local bank on May 1, 2020, signing a note with a 6 percent interest rate. The note and Interest are due on May 1, 2021 o On December 31, 2020, Pool Corporation cleaned and winterized a customer's pool for $13.200, but the service was not yet recorded on December 31. p. On August 1, 2020, Pool Corporation purchased a two-year Insurance policy for $3,000, with coverage beginning on that date 9. During 2020. Pool Corporation purchased supplies costing $25,000 from various suppliers for cash 1. Pool Corporation estimated that depreciation on its buildings and equipment was $8.200 for the year. s. At December 31, 2020, $1,400 of interest on investments was earned that will be received in 2021 L. Rent for December due to be paid in January 2020 of $2,100 u. Sold $67,000 of goods and received the amount on the same day. V. Record the expired insurance purchased (trans. f) for the month of December w. Sales worth $22,000 made to Penny's Pool Service & Supply Inc on Credit x. Pool Corporation received utilities bill for $510 for December. Pald in cash when received y. Property tax paid $10,400 during the year. z. Received partial payment from Penny's Pool Service & Supply Inc amounting to $11,000 for the purchase made this year. (tras."W") a1. Pool Corporation purchased equipment worth $5,000 on credit basis. 62. Pool Corporation received the remaining balance amount due towards the recent sale made to Penny's Pool Service & Supply Inc (trans 'w c3. Paid for the equipment purchased. (tran. A1) 04. on December 31, 2020, Pool Corporation had $24,000 of pool cleaning supplies on hand. Record the necessary adjusting entry e5. Property tax due and payable worth $11,000. e6. Recognize revenue earned (transaction L.) e7. Record interest accrued on bank loan (Transaction N) e8. Record the adjusting entry to record expired insurance (Transaction P). 1 Record the $5,500 cash received from customer. 2 Record the $460 supplies purchased for Cash, 3 Record the $5,000 Product Inventory purchased for Cash. 4 Record the $7,800 wages paid. 5 Record the $4,000 equipment purchased for cash. 6 Pool Corporation paid $2,400 cash for the premium on a 12th month insurance policy beginning from December 2020. 7 Pool Corporation paid $200 towards general repairs in cash. 8 Pool Corporation paid $2,800 cash towards Utilities. Pool Corporation paid $150 towards transportation for one of the equipment as per the sale agreement. 10 Pool Corporation purchased Product Inventory for $26,000 Cash. 11 Record the $1,000 wages owed to the office receptionist and three assistants for working the last two days in December 2020 to be paid in January 2021. 12 Record the $24,000 cash received on October 1, 2020 from customers who prepaid pool cleaning service for one year beginning on November 1, 2020. 13 Pool Corporation received a $570 utility bill for December utility usage. It will be paid in January 2021. 14 Record the $30,000 borrowed from a local bank on May 1, 2020 with a 6% interest rate. The note and interest are due on May 1, 2021. 15 Record the $13,200 receivable for cleaning and winterizing a pool on December 31, 2020 not yet recorded 16 Record the $3,000 purchase of a two-year insurance policy on August 1, 2020 with coverage beginning on that date. 17 Record the purchase of supplies costing $25,000 from various suppliers for cash during 2020. 18 Record the $8,200 estimated depreciation on its buildings and equipment for the year. 19 Record the $1,400 interest on investments earned in 2020 but will be received only in 2021. 20 Record the $2,100 rent for December payable in January 2020. Note : = journal entry has been entered 21 Record the $67,000 sale of goods for cash. 22 Record the insurance expense for December 2020. 23 Sales worth $22,000 made to Penny's Pool Service & Supply Inc. on Credit. 24 Pool Corporation received utilities bill for $510 for December. Paid in cash when received. 25 Record the $10,400 Property tax paid during the year. 26 Record the $11,000 received on partial payment from Penny's Pool Service & Supply Inc for the purchase made this year. (tras."w") Mota inurnal entry has been entered 27 Record the $5,000 Pool Corporation purchased equipment worth $5,000 on credit basis. 28 Record the recent sale made to Penny's Pool Service & - Supply Inc. (trans "w") 29 Record the equipment purchased. (tran. A1) 30 Record the necessary adjusting entry for transaction on December 31, 2020, Pool Corporation had $24,000 of pool cleaning supplies on hand. 31 Record the $11,000 property tax due and payable. 32 Recognize revenue earned (transaction L) Note : = journal entry has been entered 29 Record the equipment purchased. (tran. A1) 30 Record the necessary adjusting entry for transaction on December 31, 2020, Pool Corporation had $24,000 of pool cleaning supplies on hand. 31 Record the $11,000 property tax due and payable. 32 Recognize revenue earned (transaction L) 33 Record interest accrued on loan (Transaction N) 34 Record the adjusting entry to record expired insurance (Transaction P)