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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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