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 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.

Answer 1

Answer

JACKRABBIT RENTALS

Post- Closing Trial Balance

December 31, 2021

Accounts	Debit	Credit
Cash	$98100
Accounts Receivables	$51900
Land	$115800
Supplies	$2800
Accounts Payables		$17100
Notes Payables		$35000
Common Stock		$140000
Retained Earnings		$71500
Salary Payable		$2000
Interest Payable		$3000
TOTALS	$268600	$268600

Workings:

General Journal

Date	Account Names	Debit	Credit
Jan 12	Accounts Receivables	$67400
	Service Revenue		$67400
Feb 25	Cash	$77800
	Service Revenue		$77800
Mar 19	Cash	$46200
	Accounts Receivables		$46200
Apr 30	Cash	$35000
	Common Stock		$35000
Jun 16	Supplies	$13100
	Accounts Payables		$13100
Jul 7	Accounts Payables	$11800
	Cash		$11800
Sep 30	Salaries Expense	$71200
	Cash		$69200
	Salary Payable		$2000
Nov 22	Advertising Expense	$23000
	Cash		$23000
Dec 30	Dividend	$3400
	Cash		$3400
Dec 31	Interest Expense	$3000
	Interest Payable		$3000
Dec 31	Supplies Expense	$10300
	Supplies		$10300

Income Statement

Incomes
Service Revenue	$145200
Total (A)	$145200
Expenditures
Salary Expense	$71200
Advertising Expense	$23000
Supplies Expense	$10300
Interest Expense	$3000
Total (B)	$107500
Net Income (A - B)	$37700

Statement of Retained Earnings

Retained Earnings Opening	$37200
Add: Net income	$37700
Less: Dividend Paid	($3400)
Retained Earnings Closing	$71500

Computatio of Closing Cash Balance

Opening Cash	$46500
Add: service revenue received	$77800
Add: Received from Accounts Receivables	$46200
Add: Issue of common Stock	$35000
Less: Salary paid in cash	($69200)
Less: Advertising Expense paid	($23000)
Less: Dividend Paid	($3400)
Less: Paid Accounts Payables	($11800)
Cash Closing Balance	$98100

​​​​​​​​​Computation of Accounts Receivables closing

Accounts Receivables opening	$30700
Add:	$67400
Less:	($46200)
Accounts Receivables closing	$51900

Computation of Accounts Payables Closing

Accounts Payables Opening	$15800
Add:	$13100
Less:	($11800)
Accounts Payables Closing	$17100

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