Question

please read and complete all transactions in the general journal, income statement, and balance sheet. each account has an unadjusted, adjusted, and post closing as well.

The general ledger of Jackrabbit Rentals at January 1, 2021, includes the following account balances: Credits Dobits $ 41,500 25,700 110,800 Accounts Cash Accounts Receivable Land Accounts Payable Notes Payable (due in 2 years) Common Stock Retained Earnings Totals 15.300 30,000 100,000 32,700 $178,000 $178,000 The following is a summary of the transactions for the year: 1. January 12 Provide services to customers on account, $62,400. 2. February 25 Provide services to customers for cash, $75,300. 3. March 19 Collect on accounts receivable, $45,700. 4. April 30 Issue shares of conmon stock in exchange for $30,000 cash. 5. June 16 Purchase supplies on account, $12, 100. 6. July 7 Day on accounts payable, $11,300. 7. September 30 Paysalaries for employee work in the current year, $64,200. 8. November 22 Pay advertising for the current year, $22,500. 9. December 30 pay $2.900 cash dividends to stockholders. The following information is available for the adjusting entries. Accrued interest on the notes payable at year-end amounted to $2,500 and will be paid January 1, 2022. Accrued salaries at year-end amounted to $1,500 and will be paid on January 5, 2022. Supplies remaining on hand at the end of the year equal $2,300. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet 1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1 - 9). Review the "General Ledger and the Trial Balance' tabs to see the effect of the transactions on the account balances. 2. Record the adjusting entries in the 'General Journal' tab (these are shown as items 10-12). 3. Review the adjusted Trial Balance' as of December 31, 2021.

Answer 1

Answer:

Journal Entries:

	Date	Account title and Explanation	Debit	Credit
1	Jan 12	Accounts receivable	$62,400
		Service revenue		$62,400
		[To record services performed on account]
2	Feb 25	Cash	$75,300
		Service revenue		$75,300
		[To record cash received for services]
3	Mar 19	Cash	$45,700
		Accounts receivable		$45,700
		[To record collections from customers]
4	Apr. 30	Cash	$30,000
		Common stock		$30,000
		[To record issuance of common stock]
5	Jun. 16	Supplies	$12,100
		Accounts payable		$12,100
		[To record purchases of supplies on account]
6	Jul 7	Accounts payable	$11,300
		Cash		$11,300
		[To record payment of accounts payable]
7	Sept 30	Salaries expense	$64,200
		Cash		$64,200
		[To record payment of salaries expense]
8	Nov 22	Advertising expense	$22,500
		Cash		$22,500
		[To record payment of advertising expense]
9	Dec 30	Cash dividends	$2,900
		Cash		$2,900
		[To record payment of cash dividends]
10	Dec 31	Interest expense	$2,500
		Interest payable		$2,500
		[To record accrued interest expense]
11	Dec 31	Salaries expense	$1,500
		Salaries payable		$1,500
		[To record accrued salareis expense]
12	Dec 31	Supplies expense [12,100-2,300]	$9,800
		Supplies		$9,800
		[To record supplies expense]
13	Dec 31	Service revenue	$137,700
		Retained earnings		$137,700
		[To close revenue accounts]
14	Dec 31	Retained earnings	$100,500
		Salaries expense		$65,700
		Advertising expense		$22,500
		Interest expense		$2,500
		Supplies expense		$9,800
		[To close expenses accounts]
15	Dec 31	Retained earnings	$2,900
		Cash dividends		$2,900
		[To close cash dividends accounts]

Income Statement:

Adjusted

Income Statement
For the year ended Dec 31,2021
Revenues:
Service revenue		$137,700
Expenses:
Salaries expense	$65,700
Advertising expense	$22,500
Interest expense	$2,500
Supplies expense	$9,800
Total expenses		$100,500
Net income		$37,200

Statement of retained earnings:

Statement of retained earnings
For the year ended Dec 31,2021
Retained earnings, Jan 1,2021	$32,700
Add: Net income	$37,200
	$69,900
(Less): Dividends	($2,900)
Retained earnings, Dec 31,2021	$67,000

Balance Sheet:

Post-closing

Balance Sheet
As of Dec 31,2021
Assets		Liabilities and Stockholders' equity
Current assets:		Current liabilities:
Cash	$102,900	Accounts payable	$16,100
Accounts receivable	$31,100	Interest payable	$2,500
Supplies	$2,300	Salaries payable	$1,500
Total current assets	$136,300	Total current liabilities	$20,100
		Notes payable	$30,000
Long-term assets:		Total liabilities	$50,100
Land	$110,800
		Stockholders' equity:
		Common stock	$130,000
		Retained earnings	$67,000
		Total stockholders' equity	$197,000
Total Assets	$247,100	Total liabilities and stockholders' equity	$247,100

Calculations:

Account title	Debit	Credit
Cash	41500+75300+45700+30000-64200-22500-2900
Accounts receivable	25700+62400-45700-11300
Supplies	12100-9800
Land	$110,800
Accounts payable		15300+12100-11300
Interest payable		$2,500
Salaries payable		$1,500
Notes payable		$30,000
Common stock		100000+30000
Retained earnings		$32,700
Cash dividends	$2,900
Service revenue		62400+75300
Salaries expense	64200+1500
Advertising expense	$22,500
Interest expense	$2,500
Supplies expense	$9,800

From the above calculations prepared following trial balance,

Adjusted trial balance
December 31,2021
Account title	Debit	Credit
Cash	$102,900
Accounts receivable	$31,100
Supplies	$2,300
Land	$110,800
Accounts payable		$16,100
Interest payable		$2,500
Salaries payable		$1,500
Notes payable		$30,000
Common stock		$130,000
Retained earnings		$32,700
Cash dividends	$2,900
Service revenue		$137,700
Salaries expense	$65,700
Advertising expense	$22,500
Interest expense	$2,500
Supplies expense	$9,800
Total	$350,500	$350,500