Youve 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 doesnt know where to begin. Its your job to go through the complete Accounting cycle to prepare the financial statements for the PPC.

During its first month of operation, Peter's Pool Corporation, which specializes in pool repairs, completed the following transactions. Date July 1 July 1 July 1 July 6 July Transactions Transaction Description 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. Paid the premium on a 1-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 bill, $300. Cash pool service revenue for the first third of July, $2,650. Made payment to Mary's Repair Company, $300. Cash pool service revenue for the second third of July, $4,000. Cash pool service revenue for the last third of July, $2,250. Paid the current month's electric bill, $500. Declared and paid cash dividend of $1,100. July 8 July 10 July 11 July 18 July 20 July 31 July 31 July 31 Chart of Accounts Account Number Account Title Nomal Balance Account Type Assets 111 117 119 144 145 Cash Repair Supplies Prepaid Insurance Repair Equipment Accum Dep-Repair Equipment Debit Debit Debit Debit Credit Liabilities 212 213 Accounts Payable Income Tax Payable Qedit Qedit Stockholders Equity 311 312 313 Common Stock Retained Earnings Dividends Credit Qedit Debit Revenue 411 Pool Service Revenue Credit Expenses 511 512 513 514 515 516 517 Store Rent Expense Debit Telephone Expense Debit Insurance Expense Debit Repair Supplies Expense Debit Dep Expense - Repair Equipment Debit Income Tax Expense Debit Electric Expense Debit REQUIREMENT #1: Prepare journal entries to record the July transactions in the General Journal below. Remember that Debits must equal Credits-All of your Journal Entries should balance. General Journal Account Number from Chart of Accounts tab Date Account Title from Chart of Accounts tab Debit Credit Once you've completed this requirement print your General Journal to complete Requirement #2 on the General Ledger worksheet. REQUIREMENT #2: Post the July journal entries to the following T-Accounts and compute ending balances. Date Cash (111) Date Pool Service Revenue (411) Repair Supplies (117) Store Rent Expense (511) Prepaid Insurance (119) Telephone Expense (512) Repair Equipment (144) Insurance Expense (513) Accum. Depr.-Repair Equipment (145) Repair Supplies Expense (514) Accounts Payable (212) Depr. Exp.-Repair Equipment (515) Income Tax Payable (213) Income Tax Expense (516) Common Stock (311) Electric Expense (517) Retained Earnings (312) Dividends (313) REQUIREMENT #3: Prepare a trial balance for July in the space below. Peter's Pool Corporation Trial Balance July 31 Account Title Only enter accounts that have a balance. Account Number Balance Debit Credit