Question

[The following information applies to the questions displayed below.] The general ledger of Jackrabbit Rentals at January 1, 2021, includes the following account balances: Accounts Debits Credits Cash $ 46,500 Accounts Receivable 30,700 Land 115,800 Accounts Payable 15,800 Notes Payable (due in 2 years) 35,000 Common Stock 105,000 Retained Earnings 37,200 Totals $ 193,000 $ 193,000 The following is a summary of the transactions for the year: 1. January 12 Provide services to customers on account, $67,400. 2. February 25 Provide services to customers for cash, $77,800. 3. March 19 Collect on accounts receivable, $46,200. 4. April 30 Issue shares of common stock in exchange for $35,000 cash. 5. June 16 Purchase supplies on account, $13,100. 6. July 7 Pay on accounts payable, $11,800. 7. September 30 Pay salaries for employee work in the current year, $69,200. 8. November 22 Pay advertising for the current year, $23,000. 9. December 30 Pay $3,400 cash dividends to stockholders. The following information is available for the adjusting entries. Accrued interest on the notes payable at year-end amounted to $3,000 and will be paid January 1, 2022. Accrued salaries at year-end amounted to $2,000 and will be paid on January 5, 2022. Supplies remaining on hand at the end of the year equal $2,800. 5. Record adjusting entries. Accrued interest on the notes payable at year-end amounted to $3,000 and will be paid January 1, 2022. Accrued salaries at year-end amounted to $2,000 and will be paid on January 5, 2022. Supplies remaining on hand at the end of the year equal $2,800. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Answer 1

1.Journal entries

Item	Date	General Journal	Debit	Credit
1	January 12	Accounts receivable	67,400
		Service revenue		67,400
		(To record services provided on account)
2	February 25	Cash	77,800
		Service revenue		77,800
		(To record services provided for cash)
3	March 19	Cash	46,200
		Accounts receivable		46,200
		(To record collections on account)
4	April 30	Cash	35,000
		Common stock		35,000
		(To record the issuance of common stock)
5	June 16	Supplies	13,100
		Accounts payable		13,100
		(To record supplies purchased on account)
6	July 7	Accounts payable	11,800
		Cash		11,800
		(To record payment on account)
7	September 30	Salaries expense	69,200
		Cash		69,200
		(To record salaries paid)
8	November 22	Advertising expense	23,000
		Cash		23,000
		(To record advertising expense paid)
9	December 30	Dividends	3,400
		Cash		3,400
		(To record cash dividends paid)

2.Adjusting entries

Item	Date	General Journal	Debit	Credit
10	December 31	Interest expense	3,000
		Interest payable		3,000
		(To record interest accured on notes payable)
11	December 31	Salaries expense	2,000
		Salaries payable		2,000
		(To record accrued salaries)
12	December 31	Supplies expense (13,100 - 2,800)	10,300
		Supplies		10,300
		(To record supplies expense)