1. Journalize the transactions that occurred in July. Omit Explanations.
2. Using four-Column account, post the transactions to the ledger creating new ledger accounts as necessary. Omit posting references. Calculate the new account balance at July 31.
3. Prepare the unadjusted trial balance for Pure Water, 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, $200.
c. Depreciation: $100 equipment, $75 furniture, $330vehicles.
d. Services performed but unbilled, $1,900.
e. Accrued salaries, $550.
f. Unearned service revenue earned as of July 31, $1,000.
5. Prepare an adjusted trial balance for Pure Water, Inc., at the end of July.
6. Prepare the income statement and statement of retained earnings for the Three-month period May 1 through July 31. 2012. Also prepare a balance sheet at July 31. 2012
7. Prepare and post-closing entries
8. Prepare a post-closing trial balance at July 31. 2012.
Following Step 3, a ten column worksheet should be compiled. The first two columns will consist of the detail from Step 3. The worksheet will be completed simultaneously with Steps 3-5 above in Part III. The worksheet will assist in the preparation of the financial statements in Step 6.
Income taxes should be computed using a 35% tax rate. This information should be placed on the worksheet and on the applicable financial statement(s).
Templates have been created and should be updated accordingly.