Question

University Principles of Accounting: Comprehensive Question

Comprehensive Question Info needed for part A-H:

The general ledger of Jackrabbit Rentals at January 1, 2021, includes the following account balances:

Accounts	Debit	Credit
Cash	52,500
Accounts Receivable	36,700
Land	121,800
Accounts Payable		16,400
Notes Payable (due in two years)		41,000
Common Stock		111,000
Retained Earnings		42,600
TOTALS	$211,000	$211,000

The following is a summary of the transactions for the year:

Transaction #, Month, Day, Summary

1.		January		12		Provide services to customers on account, $73,400.
2.		February		25		Provide services to customers for cash, $80,800.
3.		March		19		Collect on accounts receivable, $46,800.
4.		April		30		Issue shares of common stock in exchange for $41,000 cash.
5.		June		16		Purchase supplies on account, $14,300.
6.		July		7		Pay on accounts payable, $12,400.
7.		September		30		Pay salaries for employee work in the current year, $75,200.
8.		November		22		Pay advertising for the current year, $23,600.
9.		December		30		Pay $4,000 cash dividends to stockholders.

The following information is available for the adjusting entries.

Accrued interest on the notes payable at year-end amounted to $3,600 and will be paid January 1, 2022. Accrued salaries at year-end amounted to $2,600 and will be paid on January 5, 2022. Supplies remaining on hand at the end of the year equal $3,400.

Steps for answering the question from professor:

*In the comprehensive problem, Question 1 (Q1) is the general ledger and you will refer back to this Q after completion of journal entries in the subsequent Qs. The work flow should look something like this:

1.post beginning balances in ledger (QA)

2.record transactions a-i in the general journal (QB)

3.post transactions from Q2 in ledger (QA)

4.determine ending balances for all accounts in ledger (QA)

5.prepare unadjusted trial balance (QC)

6.make adjusting journal entries from info in transaction J (QD)

7.post adjusting entries to ledger (QA) and determine new ending balances

8.prepare adjusted trial balance (QE)

9.prepare financial statements (QF)

10.record closing entries in journal (QG)

11.post closing entries to ledger (QA) and determine new balances

12.prepare post-closing trial balance (QH)

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Part A: Post the transactions, adjusting entries and closing entries to the T-accounts. Be sure to include beginning balances.

Account Title

Beg. Balance	Debit	Credit
Ending Balance

Part B: Record each of the summary transactions listed above. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Note: Enter debits before credits.

Transaction 1: Provide services to customers on account, $73,400.

Transaction 2: Provide services to customers for cash, $80,800.

Transaction 3: Collect on accounts receivable, $46,800.

Transaction 4: Issue shares of common stock in exchange for $41,000 cash.

Transaction 5: Purchase supplies on account, $14,300.

Transaction 6: Pay on accounts payable, $12,400.

Transaction 7: Pay salaries for employee work in the current year, $75,200.

Transaction 8: Pay advertising for the current year, $23,600.

Transaction 9: Pay $4,000 cash dividends to stockholders.

	Transaction General Journal Debit Credit

General Journal Row Options List of Account Names: No Journal Entry Required, Accounts Payable, Accounts Receivable, Accumulated Depreciation, Advertising Expense ,Buildings , Cash, Common Stock, Deferred Revenue, Delivery Expense, Depreciation Expense, Dividends, Equipment, Income Tax Expense, Insurance Expense, Interest Expense, Interest Payable, Interest Receivable, Interest Revenue, Inventory, Land, Legal Fees Expense, Notes Payable, Notes Receivable, Prepaid Advertising, Prepaid Insurance, Prepaid Rent, Rent Expense, Repairs and Maintenance Expense, Retained Earnings, Salaries Expense, Salaries Payable, Sales Revenue, Service Fee Expense, Service Revenue, Supplies, Supplies Expense, Utilities Expense, Utilities Payable

Part C: Prepare an unadjusted trial balance.

Part D: Record adjusting entries:  Accrued interest on the notes payable at year-end amounted to $3,600 and will be paid January 1, 2022, Accrued salaries at year-end amounted to $2,600 and will be paid on January 5, 2022,    Supplies remaining on hand at the end of the year equal $3,400. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Part E: Prepare an adjusted trial balance.

Part F: Prepare an income statement for the year ended December 31, 2021 & Prepare a classified balance sheet for the year ended December 31, 2021.

Part G: Record closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Part H: Prepare a post-closing trial balance.

Answer 1

Jackrabbit Rentals Journal Enteries Date Particulars 12.1.2021 Accounts Receivable a/c To Service Revenue (Services on account) Dr. Debit in $ Credit in $ 73400 73400 80800 25.2.2021 Cash a/c Dr. To Service Revenue (Services in cash) 80800 46800 19.3.2021 Cash a/c Dr. To Accounts Receivable (Cash from debtors) 46800 41000 30.4.2021 Cash a/c Dr. To Common Stock (Common stock issued for cash) 41000 14300 16.6.2021 Supplies a/c Dr. To Accounts Payable (Supplies on account) 14300 Dr. 12400 7.7.2021 Accounts Payable a/c To Cash (Cash paid to creditors) 12400 Dr. 75200 30.9.2021 Salaries Expense a/c To Cash (Salary paid) 75200 Dr. 23600 22.11.2021 Advertising expense a/c To Cash (Advertising expense paid) 23600 Dr. 4000 30.12.2021 Cash Dividends a/c To Cash (Dividends paid) 4000

Adjusting Enteries Date Particulars 31.12.2021 Interest Expense a/c To Interest Payable (Interest accrued) Debit in $ Credit in $ 3600 Dr. 3600 Dr. 2600 31.12.2021 Salaries Expense a/c To Salaries Payable (Salary accrued) 2600 10900 31.12.2021 Supplies Expense a/c Dr. To Supplies (Supplies expensed) 14300 - 3400 10900 Closing Enteries Date Particulars 31.12.2021 Income Summary a/c Dr. To Salaries Expense To Advertising expense To Interest Expense To Supplies Expense (Expense accounts closed) Debit in $ Credit in $ 115900 77800 23600 3600 10900 Dr. 154200 31.12.2021 Service Revenue a/c To Income Summary (Revenue accounts closed) 154200 Dr. 38300 31.12.2021 Income Summary a/c To Retained Earnings (Profits transferred) 38300 31.12.2021 Retained Earnings a/c Dr. 4000 To Cash Dividends (Dividends charged to retained earnings) 4000

Worksheet For the period ending 31.12.2021 Unadjusted Adjustments Adjusted Post Closing Particulars Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ Cash 105900 105900 105900 Accounts Receivable 63300 63300 63300 Supplies 14300 10900 3400 3400 Land 121800 121800 121800 Accounts Payable 18300 18300 18300 Interest Payable 3600 3600 3600 Salaries Payable 2600 2600 2600 Notes Payable (due in two years) 41000 41000 41000 Common Stock 152000 152000 152000 Retained Earnings 42600 42600 76900 Cash Dividends 4000 4000 Service Revenue 154200 154200 Salaries Expense 75200 2600 77800 Advertising expense 23600 23600 Interest Expense 3600 3600 Supplies Expense 10900 10900 Totals 408100 408100 17100 17100 4 14300 414300 294400 294400 154200 Statement of Income For the period ending 31.12.2021 Service Revenue Less: Salaries Expense Advertising expense Interest Expense Supplies Expense Net Income 77800 23600 3600 10900 115900 38300 Statement of Retained Earnings For the period ending 31.12.2021 Beginning Balance Add:Net Income 42600 38300 80900 -4000 76900 Less:Cash Dividends

Amounts in $ Amounts in $ Balance sheet As at 31.12.2021 Assets Current Assets Cash Accounts Receivable Supplies Amounts in $ Amounts in $ Liabilities Current Liabilities 105900 Accounts Payable 63300 Interest Payable 3400 172600 Salaries Payable 18300 3600 2600 24500 Non Current Assets Land Non Current Liabilities 121800 Notes Payable (due in two years) 41000 Shareholders Equity Common Stock Retained Earnings 294400 Total Liabilities & Equity 152000 76900 228900 294400 Total Assets