Question

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

Accounts	Debits				Credits
Cash	$	51,500
Accounts Receivable		35,700
Land		120,800
Accounts Payable						16,300
Notes Payable (due in 2 years)						40,000
Common Stock						110,000
Retained Earnings						41,700
Totals	$	208,000			$	208,000

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

1.		January		12		Provide services to customers on account, $72,400.
2.		February		25		Provide services to customers for cash, $80,300.
3.		March		19		Collect on accounts receivable, $46,700.
4.		April		30		Issue shares of common stock in exchange for $40,000 cash.
5.		June		16		Purchase supplies on account, $14,100.
6.		July		7		Pay on accounts payable, $12,300.
7.		September		30		Pay salaries for employee work in the current year, $74,200.
8.		November		22		Pay advertising for the current year, $23,500.
9.		December		30		Pay $3,900 cash dividends to stockholders.

The following information is available for the adjusting entries.

Accrued interest on the notes payable at year-end amounted to $3,500 and will be paid January 1, 2022. Accrued salaries at year-end amounted to $2,500 and will be paid on January 5, 2022. Supplies remaining on hand at the end of the year equal $3,300.

4. Prepare an unadjusted trial balance.

Answer 1

	general ledger of Jackrabbit Rentals at January 1, 2021
	Accounts	Debits	Credits
	Cash	51,500
	Accounts Receivable	35,700
	Land	120,800
	Accounts Payable		16,300
	Notes Payable (due in 2 years)		40,000
	Common Stock		110,000
	Retained Earnings		41,700
	Totals	208,000	208,000
	The following are the entries that will be posted in books of accounts during the year
SL.NO	Accounts	Debits	Credits	Remarks
1	Provide services to customers on account, $72,400.
	Accounts Receivable	72400
	To service income		72400
2	Provide services to customers for cash, $80,300.
	Cash	80300
	To service income		80300
3	Collect on accounts receivable, $46,700
	Cash	46700
	To Accounts Receivable		46700
4	Issue shares of common stock in exchange for $40,000 cash.
	Cash	40000
	To Common Stock		40000
5	Purchase supplies on account, $14,100.
	Supplies	14100
	To Accounts Payable		14100
6	Pay on accounts payable, $12,300.
	Accounts Payable	12300
	To Cash		12300
7	Pay salaries for employee work in the current year, $74,200.
	Salaries	74200
	To Cash		74200
8	Pay advertising for the current year, $23,500.
	Advertisement exepsnes	23500
	To Cash		23500
9	Pay $3,900 cash dividends to stockholders.
	cash dividends paid	3900
	To Cash		3900
10	Accrued interest on the notes payable at year-end amounted to $3,500			The impact of these 3 entries is not considered for preparing Unadjusted trial balance as these are given adjusting entries
	Interest expense	3500
	To Interest payable on notes		3500
11	Accrued salaries at year-end amounted to $2,500
	Salary expense	2500
	To salary payable		2500
12	Supplies remaining on hand at the end of the year equal $3,300.(supplies consumed will be 14100-3300)
	Consumption of supplies	10800
	To Supplies		10800
	general ledger of Jackrabbit Rentals at January 1, 2021
	Accounts	Debits	Credits
	Cash (51500+80300+46700+40000-12300-74200-23500-3900)	104,600
	Accounts Receivable (35700+72400-46700	61,400
	Land	120,800
	Accounts Payable (16300+14100-12300		18,100
	Notes Payable (due in 2 years)		40,000
	Common Stock (110000+40000)		150,000
	Retained Earnings		41,700
	Service Income (80300+72400)		152,700
	Supplies	14100
	Cash dividends paid	3900
	Advertisement expenses	23500
	Salaries	74200
	Totals	402,500	402,500