Reference no: EM132492716

Penny's Pool Service & Supply, Inc. (PPSS) had the following transactions related to operating the business in its first year's busiest quarter ended September 30:

1. Placed and paid for $2,490 in advertisements with several area newspapers (including the online versions), all of which ran in the newspapers during the quarter.
2. Cleaned pools for customers for $14,200, receiving $7,900 in cash with the rest owed by customers who will pay when billed in October.
3. Paid Pool Corporation, Inc., a pool supply wholesaler, $20,500 for inventory received by PPSS in May.
4. As an incentive to maintain customer loyalty, PPSS offered customers a discount for prepaying next year's pool cleaning service. PPSS received $19,900 from customers who took advantage of the discount.
5. Paid the office receptionist $6,400, with $1,920 owed from work in the prior quarter and the rest from work in the current quarter. Last quarter's amount was recorded as an expense and a liability, Wages Payable.
6. Had the company van repaired, paying $200 to the mechanic.
7. Paid $170 for phone, water, and electric utilities used during the quarter.
8. Received $180 cash in interest earned during the current quarter on short-term investments.
9. Received a property tax bill for $400 for use of the land and building in the quarter; the bill will be paid next quarter.
10. Paid $1,600 for the next quarter's insurance coverage.

Required:

Question 1. Prepare journal entries for above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)