Pool Corporation, Inc., is the world's largest wholesale distributor of swimming pool supplies and equipment. It is a publicly traded corporation that trades on the NASDAQ exchange.  The majority of Pool's customers are small, family-owned businesses. Assume that Pool Corporation completed the following transactions during the current year.

 

Sept.	15		Purchased and paid for merchandise for resale. The invoice amount was $125,000. Assume Pool uses a periodic inventory system.
Oct.	1		Borrowed $900,000 from Southwest Bank for general use; signed an 11-month, 5% annual interest-bearing note for the money.
Oct.	5		Received a $40,000 customer deposit from Joe Lipscomb for services to be performed in the future.
Oct.	15		Performed $18,000 of the services paid for by Mr. Lipscomb.
Dec.	12		Received electric bill for $12,000. Pool plans to pay the bill in early January.
	31		Determined wages of $52,000 earned but not yet paid on December 31 (disregard payroll taxes).

 

Required:

1.&2. Prepare journal entries for each of these transactions and all adjusting entries required on December 31.