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 $ 46,500 30,700 115,800 Accounts Cash Accounts Receivable Land Accounts Payable Notes Payable (due in 2 years) Common Stock Retained Earnings Totals 15,800 35,000 105,000 37,200 $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 the 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.

Answer 1

CLOSING ENTRIES Date Account Title Debit ($) Credit ($) Dec.31 Service Revenue 1,45,200 Income Summary 1,45,200 (To Close Service Revenue) Accounts 1,07,500 Jackrabbit Rentals For the Year Ended 31 Dec 2020 Unadjusted Trial Balance Adjustments Adjusted Trial Balance Debits Credits Debits Credits Debits Credits 98,100 98,100 51,900 51,900 1,15,800 1,15,800 13,100 10,300 2,800 17,100 17,100 35,000 35,000 3,000 3,000 2,000 2,000 1,40,000 1,40,000 37,200 37,200 3,400 3,400 1,45,200 1,45,200 23,000 23,000 69,200 2,000 71,200 3,000 3,000 10,300 10,300 Dec.31 Income Summary Advertising Expense Salary Expense Interest Expense Supplies Expense (To Close Expense Accounts) Cash Accounts Receivable Land Supplies Accounts Payable Notes Payable (due in 2 years) Accrued Interest Accrued Salaries Common Stock Retained Earnings Dividends Service Revenue Advertising Expense Salary Expense Interest Expense Supplies Expense 23,000 71,200 3,000 10,300 3,400 Dec.31 Income Summary Dividends (To Close Dividend Accounts) 3,400 Total 3,74,500 3,74,500 15,300 15,300 3,79,500 3,79,500