Reference no: EM132945343
Pool Corporation Inc. is the world's largest wholesale distributor of swimming pool supplies and equipment. It is a publicly traded corporation that trades on the NASDAQ exchange under the symbol POOL. It sells these products to swimming pool repair and service businesses, swimming pool builders, and retail swimming pool stores. The majority of these customers are small, family-owned businesses.
Pool Corporation completed the following transactions during 2020. Its fiscal year ends on December 31, 2020.
September 15 Purchased and paid for merchandise for resale at an invoice cost of $125,000. The company uses a periodic inventory system.
October 1 Borrowed $900,000 from First National Bank for general use; signed an 11-month, 5 percent interest-bearing note.
October 5 Received a $40,000 customer deposit from Joe Lipscomb for services to be performed in the future.
October 15 Performed $18,000 of the services paid for by Mr. Lipscomb.
December 12 Received utility bill for $12,000. Pool will pay it in early January 2021.
31 Determined that wages of $52,000 earned by employees but not yet paid on December 31 (disregard payroll taxes).
Required:
Problem 1. Prepare journal entries for each of these transactions.