You’ve just secured a new client in your accounting practice, Peter's Pool Corporation (PPC), a brand new small business specializing in pool service. The owner, Peter Peck, is a terrific swimmer and pool repair specialist, but definitely not an accountant. Your job is to help Peter put his affairs in order. Luckily, Peter has only been in operation for a month and things have not gotten too out of hand yet! Peter has to submit his financial statements to his investors and doesn’t know where to begin. It’s your job to go through the complete Accounting cycle to prepare the financial statements for the PPC.

 

 
 

During ifs first month of operation, Pefer's Pool Corporation, which specializes in pool repairs, completed the following transactions. July Transactions Transaction Description Date July 1 Began business by making a deposit in a company bank account of $40,000, in exchange for 4,000 shares of $10 par value common stock. July 1 July 1 July 6 Paid the premium on a l-year insurance policy, $4.800. Paid the current month's store rent expense, $3,600. Purchased repair equipment from Paul's Pool Equipment Company, $7,800. Paid $600 down and the balance was placed on account. Purchased repair supplies from Mary's Repair Company on credit, $450. Paid telephone bilI, $300. Cash pool service revenue for the first third of July, $2,650. Made payment to Mary's Repair Company, $300. July 8 July 10 July 11 July 18 July 20 Cash pool service revenue for the second third of July, $4.000. July 31 Cash pool service revenue for the last third of July, $2,250. July 31 July 31 Paid the current month's electric bill, $500. Declared and paid cash dividend of $1,100.