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Posted: September 13th, 2024
Project 2 â This will be due in Week 4
Project 2 â This will be due in Week 4Add to directions that this should be completed on a single Microsoft Excel worksheet or it canalso be completed using Microsoft Word.Adjusting Accounts at Year-End (the Accounting Cycle)Penny's Pool Service & Supply, Inc. (PPSS) is completing the accounting process for the yearjust ended, December 31, 2015. The transactions during 2015 have been journalized and posted.The following data with respect to adjusting entries are available:1. PPSS owed $7,500 wages to the office receptionist and three assistants for working thelast 10 days in December. The employees will be paid in January 2016.2. On October 1, 2015, PPSS received $24,000 from customers who prepaid pool cleaningservice for one year beginning on November 1, 2015.3. The company received a $520 utility bill for December utility usage. It will be paid inJanuary 2016.4. PPSS borrowed $30,000 from a local bank on May 1, 2015, signing a note with a 10percent interest rate. The note and interest are due on May 1, 2016.5. On December 31, 2015, PPSS cleaned and winterized a customer's pool for $800, but theservice was not yet recorded on December 31.6. On August 1, 2015, PPSS purchased a two-year insurance policy for $4,200, withcoverage beginning on that date. The amount was recorded as Prepaid Insurance whenpaid.7. On December 31, 2015, PPSS had $3,100 of pool cleaning supplies on hand. During2015, PPSS purchased supplies costing $23,000 from Pool Corporation, Inc., and had$2,400 of supplies on hand on December 31, 2014.8. PPSS estimated that depreciation on its buildings and equipment was $8,300 for the year.9. At December 31, 2015, $110 of interest on investments was earned that will be receivedin 2016.Required: Prepare adjusting entries for Penny's Pool Service & Supply, Inc., on December 31
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