Question

Susquehanna Equipment Rentals On December 1, Year Equipment Rentals chasing the assets and was going out of busi COMPREHENSIVE ACCOUNTING CYCLE PROBLEM December 1, Year 1. John and Patty Driver formed a corporation called Susquehanna ent Rentals. The new corporation was able to begin operations immediately by pu the assets and taking over the location of Rent-It, an equipment rental company out of business. The newly formed company uses the following accounts. Cash Accounts Receivable Prepaid Rent Linexpired Insurance Office Supplies Rental Equipment Accumulated Depreciation: Rental Equipment Notes Payable Accounts Payable Interest Payable Salaries Payable Dividends Payable Unearned Rental Fees Income Taxes Payable Capital Stock Retained Earnings Dividends Income Summary Rental Fees Earned Salaries Expense Maintenance Expense Utilities Expense Rent Expense Office Supplies Expense Depreciation Expense Interest Expense Income Taxes Expense The corporation performs adjusting entries monthly, Closing entries are performed annually on December 31. During December, the corporation entered into the following transactions. Dec. 1 Dec. 1 Dec. 1 Dec. 4 Issued to John and Patty Driver 20,000 shares of capital stock in exchange for a total of $240,000 cash. Purchased for $288,000 all of the equipment formerly owned by Rent-It. Paid $168,000 cash and issued a 1-year note payable for $120,000. The note, plus all 12 months of accrued interest, are due November 30, Year 2. Paid $14,400 to Shapiro Realty as three months' advance rent on the rental yard and office formerly occupied by Rent-It. Purchased office supplies on account from Modern Office Co., $1,200. Payment due in 30 days. These supplies are expected to last for several months; debit the Office Supplies asset account.) Received $9,600 cash as advance payment on equipment rental from McNamer Construction Company. (Credit Unearned Rental Fees.) Paid salaries for the first two weeks in December, $6,240. Excluding the McNamer advance, equipment rental fees earned during the first 15 days of December amounted to $21,600, of which $14,400 was received in cash. Purchased on account from Earth Movers, Inc., $720 in parts needed to repair a rental tractor. (Debit an expense account.) Payment is due in 10 days. Collected $2,400 of the accounts receivable recorded on December 15. Dec. 8 Dec. 12 Dec. 15 Dec. 17 Dec. 23

This is WAY too hard to figure out for me, can someone PLEASE show me how it's done???

Answer 1

Requirement a1: Prepare the following journal entries

Date	Account Title and Explanation	Debit	Credit
Dec. 1	Cash	$240,000
	Capital Stock		$240,000
	To record capital stock issued
Dec. 1	Rental Equipment	$288,000
	Cash		$168,000
	Note Payable		$120,000
	To record rental equipment purchased
Dec. 1	Prepaid Rent	$14,400
	Cash		$14,400
	To record advance rent paid
Dec. 4	Office Supplies	$1,200
	Accounts Payable		$1,200
	To record office supplies purchased on account
Dec. 8	Cash	$9,600
	Unearned Rental Revenue		$9,600
	To record rental revenue received in advance
Dec. 12	Salaries Expense	$6,240
	Cash		$6,240
	To record salaries paid for the first two weeks
Dec. 15	Cash	$14,400
	Accounts Receivable	$7,200
	Rental Fee Earned		$21,600
	To record rental revenue earned
Dec. 17	Maintenance Expense	$720
	Accounts Payable		$720
	To record purchase of parts for maintenance
Dec. 23	Cash	$2,400
	Accounts Receivable		$2,400
	To record cash collected on account
Dec. 26	No journal entry required
Dec. 26	Salaries Expense	$6,240
	Cash		$6,240
	To record salaries paid for the 2nd two weeks
Dec. 27	Accounts Payable	$720
	Cash		$720
	To record cash paid on account
Dec. 28	Dividends Payable (20,000 Shares × $0.12)	$2,400
	Dividends		$2,400
	To record dividends declared
Dec. 29	No journal entry required
Dec. 29	Unexpired Insurance	$11,520
	Cash		$11,520
	To record prepaid insurance
Dec. 31	Utilities Expense	$840
	Accounts Payable		$840
	To record utilities payable
Dec. 31	Cash	$18,720
	Accounts Receivable	$5,280
	Rental Fee Earned		$24,000
	To record rental revenue earned

Requirement a2:Post the transactions as follows

Rental Fees Earned $21,600 $24,000 Accounts Payable $720 $1.200 Dec. 4 $720 Dec. 17 $840 Dec. 31 Dec. 1 Dec. 8 Dec. 15 Dec. 23 Dec. 31 Dec. 15 Dec. 31 Cash $240,000 $168,000 Dec. 1 Dec. 27 $9.600 $14.400 Dec. 1 $14.400 $6.240 Dec. 12 $2,400 $6,240 Dec. 26 $18,720 $720 Dec. 27 $11,520 Dec. 29 $78.000 End. Bal $2,040 End. Bal $45,600 End. Bal Accounts Receivable Notes Payable $120,000 $2,400 Dec. 23 Dec. 15 Dec. 31 $7,200 $5,280 Dec. 1 Dec. 12 Dec. 26 Salaries Expense $6,240 $6.240 End. Bal $10.080 $120.000 End. Bal End. Bal $12.480 Interest Payable Prepaid Rent $14,400 Maintenance Expense Dec. 17 $720 Dec. 1 End. Bal $14.400 SO End. Bal End. Bal $720 Salaries Payable Unexpired Insurance $11,520 Utilities Expense $840 Dec. 23 Dec. 31 End. Bal $11,520 $0 End. Bal End. Bal $840 Rent Expense Office Supplies $1,200 Dividends Payable $2,400 Dec. 4 Dec. 28 End. Bal $1.200 $2.400 End. Bal End. Bal SO Office Supplies Expense Rental Equipment $288.000 Unearned Rental Revenue $9,600 Dec. 8 Dec. 1 End. Bal $288.000 $9.600 End. Bal End. Bal Accumulated Deprecation Rental Eq. Income Tax Payable Depreciation Expense SO End. Bal SO End. Bal End. Bal SO Interest Expense Dividends $2,400 Capital Stock $240,000 Dec. 28 Dec. 1 End. Bal $2.400 $240.000 End. Bal End. Bal Income Summary Retained Earnings Income Taxes Expense SO End. Bal End. Bal

Requirement a3: Prepare the following worksheet

Account Title Balance Sheet Debit Credit Cash Accounts Receivable Prepaid Rent Unexpired Insurance Office Supplies Rental Equipment Accumulated Depreciation Equipment Accounts Payable Interest Payable Salaries Payable Dividends Payable Unearned Rental Revenue Income Tax Payable Notes Payable Common stock Retained Earnings Dividends Rental Fees Earned Salaries Expense Maintenance Expense Utilities Expense Rent Expense Office Supplies Expense Depreciation Expense Interest Expense Income Tax Expense SE Inc Work Sheet For the Month Ended December 31, 2019 Unadjusted Trial Balance Adjustments Adjusted Trial Balance Income Statement Debit Credit Debit Credit Debit Credit Debit Credit $78,000 $78,000 $10.080 $1,800 $11.880 $14.400 $4.800 $9.600 $11,520 $11,520 $1,200 $480 $720 $288.000 $288.000 $3.000 $3.000 $2.040 $2,040 $600 $600 SO $1.680 $1.680 $2.400 $2.400 $9.600 e $4.440 $5.160 SO h $10.896 $10.896 $120,000 $120.000 $240.000 $240.000 SO SO $2.400 $2.400 $45.600 e.f $6.240 $51.840 $12.480 $1,680 $14.160 $720 $720 $840 $840 $0 $4.800 $4.800 $480 $480 $0 $3,000 $3.000 $600 $600 h $10.896 $10.896 . So 7 S07 SO $419,640 $419,640 $27.696 $27.696 $437,616 $437,616 $0 SO Total Net Income Totals SO $0 SO SO SO SO

Requirement a4: Prepare the following adjusting entries

Credit Debit $4.800 Date Account Title and Explanation Dec. 31 Rent Expense ($14.400 = 3 months) Prepaid Rent To record adjustment for rent expense $4.800 $600 Dec. 31 Interest Expense ($120,000 x 6%) = 12 Interest Payable To record adjustment for interest expense $600 $3.000 Dec. 31 Depreciation Expense ($288.000 = 8) = 12 Accumulated Depreciation - Rental Equip. To record adjustment for depreciation expense $3,000 S480 Dec. 31 Office Supplies Expense ($1,200 - $720) Office Supplies To record adjustment for office supplies $480 $4.440 Dec. 31 Unearned Rental Revenue Rental Fee Earned To record adjustment for rental fee earned $4.440 $1,800 Dec. 31 Accounts Receivable ($300 x 6) Rental Fee Earned To record adjustment for rental fee earned $1.800 $1,680 Dec. 31 Salaries Expense Salaries Payable To record adjustment for accrued salaries $1,680 | $10,896 | Dec. 31 Income Tax Expense ($51.840 - $24.600) x 40% Income Tax Payable To record adjustment for income tax expense $10.896