Sample Question: Complex Category Pool Corporation is the world's largest wholesale distributor of swimming pool supplies and equipment \& services. It sells these products to swimming pool repair and service businesses like Penny's Pool Service \& Supply Inc., swimming pool builders, and retail swimming pool stores. The majority of these customers are small, family-owned businesses like Penny's. Its trial balance for the last year ended December 31, 2019 is presented below: The following transactions occurred during the financial year 2020 : a. A retail pool customer pays his outstanding balance of $16,000 to Pool Corporation. b. Supplies purchased in Cash amounting $450. c. Pool Corporation purchases Product Inventory in Cash amounting to $3,700. d. Paid wages in cash amounting to $8,100. e. Pool Corporation purchased equipment worth $7,000 and paid immediately. f. 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 $3,600 cash towards Utilities. i. Pool Corporation paid $130 towards transportation for one of the equipment as per the sale agreement. j. Pool Corporation purchased Product Inventory for $27,000 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. I. 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 $540 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 $5,160, with coverage beginning on that date. q. During 2020, Pool Corporation purchased supplies costing $27,000 from various suppliers for cash. r. Pool Corporation estimated that depreciation on its buildings and equipment was $8,400 for the year. s. At December 31, 2020, \$1,400 of interest on investments was earned that will be received in 2021. t. Rent for December due to be paid in January 2020 of $1,700. u. Sold $52,000 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 $20,000 made to Penny's Pool Service \& Supply Inc. on Credit. x. Pool Corporation received utilities bill for $520 for December. Paid in cash when received. y. Property tax paid $10,500 during the year. z. Received partial payment from Penny's Pool Service \& Supply Inc amounting to $10,000 for the purchase made this year. (tras."w") a1. Pool Corporation purchased equipment worth $5,000 on credit basis. b2. 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) d4. 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 \$12,000. e6. Recognize revenue earned (transaction L) e7. Record interest accrued on bank loan (Transaction N). Required: 1. Post the required entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Note: Enter debits before credits. 2. Post the entries and their balances to their respective T-accounts. 6. Prepare Balance Sheet. (Input all amounts as positive values.) 7. Post the closing entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Sample Question: Complex Category Pool Corporation is the world's largest wholesale distributor of swimming pool supplies and equipment \& services. It sells these products to swimming pool repair and service businesses like Penny's Pool Service \& Supply Inc., swimming pool builders, and retail swimming pool stores. The majority of these customers are small, family-owned businesses like Penny's. Its trial balance for the last year ended December 31, 2019 is presented below: The following transactions occurred during the financial year 2020 : a. A retail pool customer pays his outstanding balance of $16,000 to Pool Corporation. b. Supplies purchased in Cash amounting $450. c. Pool Corporation purchases Product Inventory in Cash amounting to $3,700. d. Paid wages in cash amounting to $8,100. e. Pool Corporation purchased equipment worth $7,000 and paid immediately. f. 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 $3,600 cash towards Utilities. i. Pool Corporation paid $130 towards transportation for one of the equipment as per the sale agreement. j. Pool Corporation purchased Product Inventory for $27,000 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. I. 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 $540 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 $5,160, with coverage beginning on that date. q. During 2020, Pool Corporation purchased supplies costing $27,000 from various suppliers for cash. r. Pool Corporation estimated that depreciation on its buildings and equipment was $8,400 for the year. s. At December 31, 2020, \$1,400 of interest on investments was earned that will be received in 2021. t. Rent for December due to be paid in January 2020 of $1,700. u. Sold $52,000 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 $20,000 made to Penny's Pool Service \& Supply Inc. on Credit. x. Pool Corporation received utilities bill for $520 for December. Paid in cash when received. y. Property tax paid $10,500 during the year. z. Received partial payment from Penny's Pool Service \& Supply Inc amounting to $10,000 for the purchase made this year. (tras."w") a1. Pool Corporation purchased equipment worth $5,000 on credit basis. b2. 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) d4. 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 \$12,000. e6. Recognize revenue earned (transaction L) e7. Record interest accrued on bank loan (Transaction N). Required: 1. Post the required entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Note: Enter debits before credits. 2. Post the entries and their balances to their respective T-accounts. 6. Prepare Balance Sheet. (Input all amounts as positive values.) 7. Post the closing entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)