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: 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.

11. Prepare a post-closing trial balance.

Answer 1

Opening Trail Balance as on Jan 1, 2021
Account	Debit	Credit
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
Total	193,000	193,000

Transaction during the period Jan 1, 2021 to Dec 31, 2021
Account	Debit	Credit	Net (Dr-Cr)		Debit Breakup	Credit Breakup
Sales	-	145,200	(145,200)		-	67400+77800
Accounts Receivable	67,400	46,200	21,200		67400	46200
Cash	159,000	107,400	51,600		77800+46200+35000	11800+69200+23000+3400
Common Stock	-	35,000	(35,000)		-	35000
Purchases	13,100	-	13,100		13100
Accounts Payable	11,800	16,100	(4,300)		11800	13100+3000
Salaries	71,200	-	71,200		69200+2000
Advertisement	23,000	-	23,000		23000
Retained Earnings	3,400	-	3,400		3400
Accrued interest	3,000	-	3,000		3000
Salaries Payable	-	2,000	(2,000)		-	2000
	351,900	351,900	-

Closing Trail Balance as on Dec 31, 2021
Account	Debit	Credit		Debit Breakup	Credit Breakup
Cash	98,100	-		Opening(46,500)+CY(51,600)
Accounts Receivable	51,900	-		Opening(30,700)+CY(21,200)
Land	115,800	-		Opening(115,800)
Salaries Payable	-	2,000			CY Salary payable (2,000)
Accounts Payable	-	20,100			Opening(15,800)+CY(4,300)
Notes Payable (due in 1 year)	-	35,000			Opening(35,000)
Common Stock	-	140,000			Opening(105,000)+CY(35,000)
Retained Earnings	-	68,700			Opening(37200)+CY(Sales-Purchases-Salaries-Advertisement-Dividend-Accrued Interest)
Total	265,800	265,800