Question

Required Information [The following information applies to the questions displayed below.) The general ledger of Jackrabbit Rentals at January 1, 2021, Includes the following account balances: Credits Debits $ 53,500 37,789 122,800 Accounts Cash Accounts Receivable Land Accounts Payable Notes Payable (due in 2 years) Common Stock Retained Earnings Totals 16,500 42,000 112,800 43,500 $214, $ 214,200 The following is a summary of the transactions for the year: 1. January 12 Provide services to customers on account, $74,480. 2. February 25 Provide services to customers for cash, $81,300. 3. March 19 Collect on accounts receivable, $46,900. 4. April 30 Issue shares of common stock in exchange for $42,000 cash. 5. June 16 Purchase supplies on account, $14,500. 6. July 7 Pay on accounts payable, $12,580. 7. September 30 Pay salaries for employee work in the current year, $76,288. 8. November 22 Pay advertising for the current year, $23,780. 9. December 30 Pay $4,180 cash dividends to stockholders. The following Information is available for the adjusting entries. Accrued Interest on the notes payable at year-end amounted to $3,700 and will be pald January 1, 2022. Accrued salarles at year-end amounted to $2,700 and will be paid on January 5, 2022. Supplies remaining on hand at the end of the year equal $3,500.

Answer 1

112000 Bal. Service Revenue Accounts Receivable Common Stock Bal. Cash 53500 Accounts Payable 81300 Salaries Expense 46900 Advertising expense 42000 Cash Dividends Bal. 223700 Common Stock Bal. 112000 112000 112000 12500 76200 23700 4100 107200 223700 Cash Dividends Bal. Retained Earnings 4100 Bal. 77800 Income Summary 81900 43500 38400 81900 46900 Bal. Service Revenue Accounts Receivable 37700 Cash 74400 Bal. 112100 Cash 65200 112100 Cash Dividends 4100 Retained Earnings 4100 4100 4100 Supplies 14500 Supplies Expense Accounts Payable Bal. 11000 3500 14500 Service Revenue Accounts Receivable Cash 155700 155700 74400 81300 14500 Income Summary 155700

Bal. Land 122800 Bal. 122800 Cash Salaries Payable Salaries Expense 76200 2700 Income Summary 78900 122800 122800 78900 78900 Cash Cash Accounts Payable 12500 Bal. Supplies 18500 31000 16500 14500 Advertising expense 23700 Income Summary 23700 Bal. 23700 23700 31000 Interest Payable Interest Expense 3700 Income Summary 3700 Interest Payable Interest Expense 3700 3700 3700 3700 3700 Bal. 3700 Supplies Supplies Expense 11000 Income Summary 11000 2700 Salaries Payable Salaries Expense 2700 2700 Bal. 11000 11000 2700 42000 Notes Payable (due in two years) Bal. 42000 42000 Bal. 42000