Question

Balance Adjustments Debit Credit Debit Credit Adjusted Trial Balance Debit Credit Income Statement Credit Debit Balance sheet accounts: Cash Accounts receivable Prepaid rent Unexpired insurance Office supplies Rental equipment Notes payable Accounts payable Unearned rental fees Dividends payable Capital stock Retained earnings Dividends Interest payable Accumulated depreciation: rental equipment Salaries payable Income taxes payable Income statement accounts: ERET FE 13 382 Rental fees earned Salaries expense Maintenance expense Utilities expense FILL Rent expense Interest expense Depreciation expense Office supplies expense Income taxes expense Net Income Totals

Answer 1

Unadjusted TB Debit Credit Adjustments Debit Credit Adjusted TB Debit Credit Income Statement Debit Credit Balance Sheet Debit Credit 1,740 3,900 157,500 8,100 11,700 9,600 1,200 278,400 157,500 9,840 7,800 9,600 640 157,500 9,840 7,800 9,600 640 278,400 560 278,400 Susquehanna Equipment Rentals Account Names Balance Sheet accounts Cash Accounts Receivable Prepaid Rent Unexpired Insurance Office Supplies Rental Equipment Notes Payable Accounts Payable Unearned Rental Fees Dividends Payable Capital Stock Retained Earnings Dividends Interest Payable Accumulated Depreciation: Rental Equipment Salaries Payable Income Taxes Payable Income statement accounts Rental Fees Earned Salaries expense Maintenance expense Utilities expense 148,400 1,820 8,700 2,800 280,000 4,300 148,400 1,820 4,400 2,800 280,000 148,400 1,820 4,400 2,800 280,000 2,800 2,800 2,800 742 2,900 1,200 7,295 742 2,900 1,200 7,295 742 2,900 1,200 7,295 38,700 6,040 44,740 44,740 1,200 9,800 700 620 11,000 700 620 11,000 700 620 3,900 742 2,900 Rent expense Interest expense Depreciation expense Office Supplies expense Income Taxes Expense Totals Net Income Totals 3,900 742 2,900 560 7,295 494,297 560 3,900 742 2,900 560 7,295 27,717 17,023 44,740 7,295 22,637 480,420 480,420 22,637 494,297 44,740 466,580 449,557 17,023 466,580 44,740 466,580

Susquehanna Equipment Rentals
Journal entries
Date	Account	Debit	Credit	Calculation
1-Dec	Cash	280,000
	Capital Stock		280,000
1-Dec	Rental Equipment	278,400
	Cash		130,000
	Notes Payable		148,400
1-Dec	Prepaid Rent	11,700		3 months
	Cash		11,700
4-Dec	Office Supplies	1,200
	Accounts Payable		1,200
8-Dec	Cash	8,700
	Unearned Rental Fees		8,700
12-Dec	Salaries expense	4,900
	Cash		4,900
15-Dec	Cash	12,000
	Accounts Receivable	6,100
	Rental Fees Earned		18,100
17-Dec	Maintenance expense	700
	Accounts Payable		700
23-Dec	Cash	2,400
	Accounts Receivable		2,400
23-Dec	NO ENTRY
			-
26-Dec	Salaries expense	4,900
	Cash		4,900
27-Dec	Accounts Payable	700
	Cash		700
28-Dec	Dividends	2,800		=28,000*$0.10
	Dividends Payable		2,800
29-Dec	NO ENTRY
29-Dec	Unexpired Insurance	9,600
	Cash		9,600
31-Dec	Utilities expense	620
	Accounts Payable		620
31-Dec	Cash	16,200
	Accounts Receivable	4,400
	Rental Fees Earned		20,600
Adjusting entries
31-Dec	Rent expense	3,900		=11,700/3
	Prepaid Rent		3,900
31-Dec	Interest expense	742		=148,400*6%*1/12
	Interest Payable		742
31-Dec	Depreciation expense	2,900		=278,400/8*1/12
	Accumulated Depreciation: Rental Equipment		2,900
31-Dec	Office Supplies expense	560		=1,200-640
	Office Supplies		560
31-Dec	Unearned Rental Fees	4,300
	Rental Fees Earned		4,300
31-Dec	Accounts Receivable	1,740		=290*6
	Rental Fees Earned		1,740
31-Dec	Salaries expense	1,200
	Salaries Payable		1,200
31-Dec	Income Taxes Expense	7,295		=24,318*30%
	Income Taxes Payable		7,295	From Income Statement
Closing entries
31-Dec	Rental Fees Earned	44,740
	Income Summary		44,740
31-Dec	Income Summary	27,717
	Salaries expense		11,000
	Maintenance expense		700
	Utilities expense		620
	Rent expense		3,900
	Interest expense		742
	Depreciation expense		2,900
	Office Supplies expense		560
	Income Taxes Expense		7,295
31-Dec	Income Summary	17,023
	Retained Earnings		17,023
31-Dec	Retained Earnings	2,800
	Dividends		2,800

Date Debit Date Credit Accounts Receivable 15-Dec $ 6,100 23-Dec $ 2,400 31-Dec $ 4,400 31-Dec $ 1,740 Date Debit Date Credit Prepaid Rent 1-Dec $ 11,700 31-Dec $ 3,900 Susquehanna Equipment Rentals TAccounts Date Debit Date Credit Cash 1-Dec $280,000 1-Dec $ 130,000 8-Dec $ 8,700 1-Dec $ 11,700 15-Dec $ 12,000 12-Dec $ 4,900 23-Dec $ 2,400 26-Dec $ 4,900 31-Dec $ 16,200 27-Dec $ 700 29-Dec $ 9,600 Date Debit Date Credit Unexpired Insurance 29-Dec $ 9,600 Bal. Bal. $ 157,500 Office Supplies 4-Dec $ 1,200 31-Dec $ Bal. $ 9,840 Rental Equipment 1-Dec $278,400 Bal. $ 7,800 Accum. Depr.- Rental Equipment 31-Dec $ 2,900 $ 9,600 Notes Payable 1-Dec $ 148,400 560 Bal. 2,900 Bal. $ 640 Accounts Payable 4-Dec $ 27-Dec $ 700 17-Dec $ 31-Dec $ $ 278,400 Interest Payable 31-Dec $ Bal. $ Salaries Payable 31-Dec $ $ 148,400 Dividends Payable 28-Dec $ 2,800 742 1,200 1,200 700 620 1,820 742 Bal. $ Unearned Rental Fees 31-Dec $ 4,300 8-Dec $ Bal. $ Income Taxes Payable 31-Dec $ Bal. $ 1,200 Capital Stock 1-Dec $ 280,000 Bal. $ 2,800 Retained Earnings 31-Dec $ 2,800 31-Dec $ 17,023 8,700 7,295 4,400 Bal. $ 280,000 Bal. $ 14,223 Bal. $ Dividends 2,800 31-Dec $ $ 7,295 Income Summary 31-Dec $ 27,717 31-Dec $ 44,740 31-Dec $ 17,023 28-Dec $ 2,800 Bal. $ Salaries expense 12-Dec $ 4,900 26-Dec $ 4,900 31-Dec $ 1,200 31-Dec $ 11,000 Maintenance expense 17-Dec $ 700 Bal. $ Rental Fees Earned 15-Dec $ 18,100 31-Dec $ 20,600 31-Dec $ 4,300 31-Dec $ 44,740 31-Dec $ 1,740 Utilities expense 31-Dec $ 620 31-Dec $ 700 31-Dec $ 620 - Bal. $ Rent expense 3,900 31-Dec $ Bal. $ Office Supplies expense 31-Dec $ 560 31-Dec $ Bal. $ - Depreciation expense 31-Dec $ 2,900 31-Dec $ 2,900 Bal. $ -. Interest expense 31-Dec $ 742 31-Dec $ 31-Dec $ 3,900 560 742 Bal. $ Bal. Bal. Bal. $ Income Taxes Expense 31-Dec $ 7,295 31-Dec $ 7,295 Bal. $

44,740 Susquehanna Equipment Rentals Income Statement For the year ended December 31 Rental Fees Earned Expenses Salaries expense Maintenance expense Utilities expense Rent expense Office Supplies expense Depreciation expense Interest expense Total Expenses Income before income taxes Income taxes @ 30% Net income 11,000 700 620 3,900 560 2,900 742 20,422 24,318 7,295 17,023 -24,318*30% Statement of Retained Earnings For the year ended December 31 Retained Earnings, Jan 1 Add: Net Income Less: Dividends Retained Earnings, Dec 31 17,023 (2,800) 14,223

Susquehanna Equipment Rentals Balance Sheet As of December 31 Assets Current Assets Cash Accounts Receivable Prepaid Rent Unexpired Insurance Supplies Total Current Assets 157,500 9,840 7,800 9,600 640 185,380 Fixed Assets Rental Equipment Accumulated Depreciation: Rental Equipment Total Fixed Assets Total Assets 278,400 (2,900) 275,500 460,880 Liabilities Current Liabilities Accounts Payable Notes Payable Interest Payable Salaries Payable Dividends Payable Unearned Rental Fees Income Taxes Payable Total Current Liabilities 1,820 148,400 742 1,200 2,800 4,400 7,295 166,657 Stockholders Equity Capital Stock Retained Earnings Total Stockholders Equity Total Liabilities & Stockholders Equity 280,000 14,223 294,223 460,880