Question

(1) Prepare journal entr the chart of acco pare journal entries to record the October 2019 transactions listed on the following page hart of accounts for the appropriate account titles to use). Prepare a sepa ach transaction and leave a space after each entry! Check fiqure: Total debits - account titles to use). Prepare a separate journal entry for check figure: Total debits = $112,705. OPTIONAL: Post the journal entries to the T-accounts and calculate the account balances. unadjusted trial balance. Check figures: Cash balance = $26.155: Trial balance total debits = P60, a calculate the account balances. Prepare an (2) Prepare adjusting journal entries in the general iour in the general journal based on the following information (all AJEs are dated October 31): (A) The computers and mobile devices have a useful life of 3 years. Record one month of deprecia (h) The truck has a useful life of 5 years. Record one month of depreciation (c) There were $315 of supplies on hand at the end of the month. (d) Record insurance expired for one month. (e) Employees earn salaries & wages of $4,000 per week. Assuming a Monday - Friday workweek, accrue wages and salaries for October 28-31. (f) By the end of October, one month of cleaning services has been performed for La Playa High School, for which payment had been received in advance on October 24. (g) On October 31, Sparkle performed cleaning services for a local athletic club. The client will be billed in November, $425. (h) Annual interest on the note payable is 7%. Record accrued interest for October (1) Income taxes to accrue for October are estimated to be $490. Check figure: Total Debits = $6,090. OPTIONAL: Post the adjusting entries to the T-accounts and calculate the account balances Prepare an adjusted trial balance. Check figure: Total Debits = $91,100,

Answer 1

1.In the books of Sparkle Pool and Spa Services Inc. :

Date	Account Titles	Debit	Credit
October 2019		$	$
1.	Cash	40,000
	Common Stock		40,000
2.	Truck	33,000
	Cash		9,000
	Notes Payable		24,000
3	Advertising Expense	250
	Cash		250
4.	Rent Expense	1,275
	Cash		1,275
7.	Supplies	1,120
	Accounts Payable		1,120
7.	Prepaid Insurance	1,800
	Cash		1,800
8	Computer	3,780
	Accounts Payable		3,780
9	Cash	4,300
	Service Revenue		4,300
11.	Salaries and Wages Expense	3,600
	Cash		3,600
16.	Accounts Receivable	11,500
	Service Revenue		11,500
18.	Legal Fees Expense	850
	Cash		850
24	Cash	1,500
	Unearned Service Revenue		1,500
25.	Salaries and Wages Expense	4,000
	Cash		4,000
26	Cash	2,500
	Accounts Receivable		2,500
28	Accounts Payable	1,120
	Cash		1,120
29	Cash	750
	Service Revenue		750
30	Utilities Expense	360
	Accounts Payable		360
31	Dividends	1,000
	Cash		1,000

2.

Sparkle Pool and Spa Services Inc. Unadjusted Trial Balance October 31, 2019
Account Titles	Debit	Credit
	$	$
Cash	26,155
Accounts Receivable	9,000
Prepaid Insurance	1,800
Supplies	1,120
Truck	33,000
Computers	3,780
Notes Payable		24,000
Accounts Payable		4,140
Unearned Service Revenue		1,500
Common Stock		40,000
Dividends	1,000
Service Revenue		16,550
Salaries and Wages Expense	7,600
Advertising Expense	250
Utilities Expense	360
Rent Expense	1,275
Legal Fees Expense	850
Totals	$ 86,190	$ 86,190

3. In the books of Sparkle Pool and Spa Services Inc.:

Adjusting entries:

Date	Account Titles	Debit	Credit
October 31, 2019		$	$
a.	Depreciation Expense	105
	Accumulated Depreciation: Computers		105
b.	Depreciation Expense	550
	Accumulated Depreciation: Truck		550
c.	Supplies Expense	805
	Supplies		805
d.	Insurance Expense	75
	Prepaid Insurance		75
e.	Salaries and Wages Expense	3,200
	Salaries and Wags Payable		3,200
f.	Unearned Service Revenue	300
	Service Revenue		300
g.	Accounts Receivable	425
	Service Revenue		425
h.	Interest Expense	140
	Interest Payable		140
i.	Income Tax Expense	490
	Income Taxes Payable		490

4.

Sparkle Pool and Spa Services Inc. Adjusted Trial Balance October 31, 2019
Account Titles	Debit	Credit
	$	$
Cash	26,155
Accounts Receivable	9,425
Prepaid Insurance	1,725
Supplies	315
Truck	33,000
Accumulated Depreciation: Truck		550
Computer	3,780
Accumulated Depreciation: Computer		105
Notes Payable		24,000
Accounts Payable		4,140
Unearned Service Revenue		1,200
Interest Payable		140
Salaries and Wages Payable		3,200
Income Taxes Payable		490
Common Stock		40,000
Dividends	1,000
Service Revenue		17,275
Salaries and Wages Expense	10,800
Advertising Expense	250
Insurance Expense	75
Utilities Expense	360
Rent Expense	1,275
Supplies Expense	805
Legal Fees Expense	850
Depreciation Expense	655
Interest Expense	140
Income Tax Expense	490
Totals	$ 91,100	$ 91,100