Penn Foster Graded Project 06168900

Penn Foster Graded Project 06168900: Aqua Elite Inc.
Lesson 1: Business Accounting and You

Mike Hanson recently left his job at a local pool company to open his own pool and spa maintenance business. Mike Hanson took all of the money he and his wife had in their personal savings account and used it to open Aqua Elite, Inc., on May 1, 20XX.
Assume that the following transactions for the first three months of operations for the Hanson’s Aqua Elite, Inc., are true and accurate.

Assumptions
- Because Aqua Elite, Inc. is a new startup business, the beginning balances in all the general ledger accounts are zero to start.
- The length of the accounting periods are three months using a fiscal calendar year. (A fiscal calendar is on a yearly basis other than a calendar year—January 1st to December 31st. For example, a fiscal calendar year can be May 1, 2009, through April 30, 2010). Therefore, posting to the general ledger, adjustments and closing entries are made on a fiscal quarterly basis.
- Accounts Receivable and Accounts Payable subsidiary ledgers aren’t being used. Any references to invoicing,receipts, or payments “on account” assume changes to the running balance in the Accounts Receivable and Accounts Payable general ledger accounts.
- Payroll calculations aren’t necessary. Assume the salary is the gross pay with no deductions taken. Therefore, the net pay is the same as the gross pay, requiring a simplified journal entry to record the expense.
- Use the information in the Chart of Accounts that’s provided after the Requirements section below. Add general ledger accounts if necessary.
- Print out and use the blank worksheets in this file as needed. Work through the project by hand using copies that has the four forms you’ll need to fill in and submit to the school for grading at the end of the project. This project is adapted and revised from your textbook’s Chapter 1, pp. 47–48, Continuing Problem; Chapter 2, p. 104, Continuing Problem; and Chapter 3, pp. 169–170, Continuing Problem. Note: Changes have been made to the scenario. Use only the information provided here for this project.

Requirements
To begin, review the financial statements on pages 122 and 127 of your textbook (Exhibits 3-4 through 3-7). Then, following the instructions below, complete the electronic forms provided at the end of this file. Submission instructions are given the end of this project.
1. Journalize the transactions. Omit explanations.
2. Post the transactions to the general ledger, creating new ledger accounts as necessary. Calculate the new general ledger account balances.
3. Prepare the unadjusted trial balance for Aqua Elite, Inc., at the end of July.
4. Journalize and post the adjusting entries for July based on the following adjustment information:
a. Record the expired rent.
b. Supplies on hand, $350.
c. Depreciation: $400 equipment, $210 furniture, $650 vehicles.
d. Services performed but unbilled, $1,900.
e. Accrued salaries, $675.
f. Unearned service revenue earned as of July 31, $800.
5. Prepare an adjusted trial balance for Aqua Elite, Inc., at the end of July.
6. Prepare the Income Statement, Statement of Retained Earnings, and Balance Sheet for the three-month period May through July 20XX.
7. Prepare, journalize, and post closing entries.
8. Prepare a Post-Closing Trial Balance for the end of the period.
May
1 Mike invested $15,000 cash and a used truck worth $13,500 in the business in exchange for company stock.
3 Paid $4,700 cash to purchase office equipment.
7 Purchased $860 of supplies on account.
12 Performed services for cash customers and received $850.
15 Paid salaries of $675 to the office receptionist.
16 Sold the company truck for $13,500.
18 Signed a note payable for $31,000 to purchase a new truck.
21 Performed $3,200 of services on account for a local hotel chain.
27 Paid $500 of the amount owed from the purchase of supplies on May
30 Received $2,000 on account from credit customers.
31 Received the utility bill for the month of May, $480. The bill is not due until the 15th of June.
31 Paid $1,000 dividends to the shareholder, Mike Hanson.
June
1 Paid receptionist’s salary, $675.
2 Paid cash to acquire land for a future office site, $15,000.
3 Moved into a new location for the business and paid the first month’s rent, $1,800.
4 Performed service for a customer and received cash, $1,700.
5 Received $500 on account.
8 Purchased $750 of supplies on account.
11 Billed customers for services performed, $3,800.
13 Sold an additional $10,000 of stock to Mike Hanson.
16 Paid receptionist’s salary, $675.
17 Received $1,350 cash for services performed.
18 Received $1,500 from customers on account.
19 Paid $325 to be listed in the yellow pages telephone directory.
21 Paid $1,000 on account.
22 Purchased office furniture on account, $3,300.
24 Paid miscellaneous expenses, $275.
26 Billed customers for services provided, $1,000.
28 Received $300 from customers on account.
30 Paid utility bill, $745.
30 Paid receptionist’s salary, $675.
30 Paid $1,800 of dividends.
July
1 Paid three months’ rent, $4,500.
4 Performed service for a customer and received cash, $2,100.
9 Received $3,600 from customers for services to be performed later.
12 Purchased $750 of supplies on account.
15 Billed customers for services performed, $2,800.
16 Paid receptionist’s salary, $675.
22 Received $3,100 on account.
25 Paid $2,800 on account.
28 Received $1,200 cash for services performed.
30 Paid $600 of dividends

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    • Lesson 1: Business Accounting and You (06168900-project)

      INSTRUCTIONS

      Mike Hanson recently left his job at a local pool company to open his own pool and spa maintenance business. Mike Hanson took …

    • To begin, review the financial statements on pages 122 and 127 of your textbook (Exhibits 3-4 through 3-7). Then, follow-ing the instructions below, complete the electronic forms provided at the end …

    • Not rated

      QUESTION

      Because Aqua Elite, Inc. is a new startup business, the
      beginning balances in all the general ledger accounts are
      zero to start.

      The length of the accounting periods are three months
      using a fiscal …

    • Graded Project Instructions & Worksheets 1

      Lesson 1: Business

      Accounting and You

      OVERVIEW

      The focus of this project is for the student to keep a set of books through an …

    • Because Aqua Elite, Inc. is a new startup business, the beginning balances in all the general ledger accounts are zero to start.

      The length of the accounting periods are three months using a fiscal …

    • Because Aqua Elite, Inc. is a new startup business, the beginning balances in all the general ledger accounts are zero to start.

      The length of the accounting periods are three months using a …

    • Penn Foster 06168900 (Aqua Elite, Inc.)

    • Mike Hanson recently left his job at a local pool company to open his own pool and spa maintenance business. Mike Hanson took all of the money he and his wife had in their personal savings account …

    • INSTRUCTIONS

      Use the explanation below and the information in the assumption section to omplete the steps in the requirements for this accounting project.

      Mike Hanson recently left his job at a …

    • 06168900: Graded Project Instructions & Worksheets 1

      Lesson 1: Business

      Accounting and You

      OVERVIEW

      The focus of this project is for the student to keep a set of books through an accounting period to …