Question
INSTRUCTIONS - Pest Service sprays chemicals to kill bugs: ants, termites, fleas, etc.Use the instructions below to complete its books for December, ending with four
INSTRUCTIONS - Pest Service sprays chemicals to kill bugs: ants, termites, fleas, etc.Use the instructions below to complete its books for December,
ending with four financial statements: income, retained earnings, cash flow, and balance sheet.
DECEMBER TRANSACTIONS & ADJUSTMENTS
DEC
20x7
1
Pest Service began with a $600 deposit to Neighborly Bank (account #12345) from Jack and Jill Liminator; 100 shares of no par common stock were issued to each owner.
2
Jack wrote check #101 for $60 to Helpp Insurance for 12 months of coverage.
4
Jill purchased sprayer equipment for $200 by issuing check #102 for a $20 down pay-ment and signing a non-interest note payable to Mist Machines at $10 per month for 18 months, starting January 1.The equipment will operate 40 months before replacement.
5
Jill signed purchase order #001 for supplies and emailed a copy to Ogre Chemicals;
the chemicals were listed at $50 plus sales taxes of $3.
8
Jack received $75 from Sanitary Kitchens as advance payment for Pest spraying service.The cash was deposited into Neighborly Bank account #12345.
12
Jill received chemicals and a $42 invoice #991 from Ogre; the bill is to be paid in 30 days. Ogre attached a note stating the other chemicals would be delivered in January.
30
Jill received a bill (account 7886) from SunGenerator for utilities used in December, $15.
31
31
Jack deposited $80 into Neighborly Bank for pest service rendered in December.
Jack calculated that two-thirds of the Sanitary Kitchens contract was completed.
31
31
31
31
31
Jill counted the inventory of unused chemicals on hand as $5 at the end of December.
Jack issued check #102 for $25 to Ogre for chemical supplies.
Jill received a Thank You card from Helpp Insurance, including a reminder that only 11 months remained on its policy.
Mish Machines worked well during its first month.It might last 39 more months.
Jill estimates income taxes are $30 for December.Tax payments will be made quarterly, starting at the end of February, 20x7.
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