Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please solve the balance sheet. Required information Penny's Pool Service & Supply, Incorporated (PPSS) is completing the accounting process for the first year of operations

image text in transcribedimage text in transcribed

Please solve the balance sheet.

Required information Penny's Pool Service \& Supply, Incorporated (PPSS) is completing the accounting process for the first year of operations ended on December 31. Transactions during the year have been journalized and posted. The following trial balance reflects the unadjusted balances on December 31 : a. PPSS owed $7,500 in wages to the office receptionist and three assistants for working the last 10 days in December. The employees will be paid early next year. b. On October 1 of the current fiscal year, PPSS received $24,000 from customers who prepaid pool cleaning service for one year beginning on November 1 of the current year c. The company received a $520 utility bill for December utility usage. It will be paid early next year. d. PPSS borrowed $79,000 from a local bank on August 1, signing a one-year, 12 percent note. The note and interest are due on August 1 of next year. e. On December 31, PPSS cleaned and winterized a customer's pool for $800, but the service was not yet recorded on March 31. f. On November 1 of the current fiscal year, PPSS purchased a two-year insurance policy for $4,200, with coverage beginning on that date. The amount was recorded as Prepaid Expenses when paid. g. On December 31, PPSS had $3,100 of pool cleaning supplies on hand after purchasing supplies costing $25,400 during the year from Pool Corporation, Incorporated. h. PPSS estimated that depreciation on its buildings and equipment was $8,300 for the year. i. At December 31, $110 of interest on investments was earned that will be received in the next year. j. The company's income tax rate for the year was 22 percent. 3. Prepare a multiple-step income statement and earnings per share (Note: 4,000 shares outstanding at end of the year), a statement of stockholder's equity, and a classified balance sheet. Prepare a classified balance sheet. Note: Do not round intermediate calculations. Items to be deducted must be indicated with a minus sign

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

Students also viewed these Accounting questions

Question

Discuss how organizational theories differ.

Answered: 1 week ago

Question

Does your message use dishonest or misleading language?

Answered: 1 week ago

Question

Does your product/program have a descriptive and memorable name?

Answered: 1 week ago

Question

How could any of these nonverbal elements be made stronger?

Answered: 1 week ago