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 $300 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.

Answer 1

1. Journal Enties -

Date Credit Jackrabbit Rentals Journal Enties Accounts Title Debit Accounts Receivable $ 67,400 Service Revenue (Being Service provided on account) Jan 12 $ 67,400 Feb 25 Cash $ 77,800 Service Revenue (Being Service provided on Cash) $ 77,800 Mar 19 Cas! $ 46,200 Accounts Receivable (Being Payment received on account) $46,200 Apr 30 Cash $ 35,000 Common Stock (Being Shares issued for cash) $ 35,000 June 16 Supplies $ 13,100 Accounts Payable (Being Supplies Purchased on Account) $ 13,100 Jul 7 Accounts Payable $ 11,800 Cash (Being payment made on account) $ 11,800 Sept 30 Salaries Expense $ 69,200 Cash (Being Salaries Paid) $ 69,200 Nov 22 Advertising Expense $ 23,000 Cash (Being advertising Expense Paid) $ 23,000 3,400 Dec 30 Dividend $ Cash (Being Dividend Paid) $ 3,400

2. Adjusting Enties -

Credit Jackrabbit Rentals Adjusting Enties Date Accounts Title Debit Dec 31 Interest Expense $ 3,000 Interest Payable (Being Interest Expense accured) $ 3,000 Dec 31 Salaries Expense $ $ 2,000 Salaries Payable (Being Salaries Expenses accrued) $ 2,000 Dec 31 Supplies Expense $ 10,300 Supplies (Being Supplies Utilised) $ 10,300

3. T- Accounts -

Beg Bal Common Stock Beg Bal $ 105,000 Apr 30 $ 35,000 Cash $ 46,500 Jul 7 $ 11,800 $ 77,800 Sept 30$ 69,200 $ 46,200 Nov 22 $ 23,000 $ 35,000 Dec 30 $ 3,400 Feb 25 Mar 19 Apr 30 Cl Bal $ 140,000 Cl Bal $ 98,100 $ 205,500 $ 205,500 Retained Earnings Beg Bal $ 37,200 Accounts Receivable Beg Bal $ 30,700 Mar 19 Jan 12 $ 67,400 $ 46,200 cl Bal $ 37,200 Cl Bal $ 51,900 Dividend $ 3,400 Dec 30 Supplies June 16 $ 13,100 Dec 31 $ 10,300 Cl Bal $ 3,400 Cl Bal $ 2,800 Service Revenue Jan 12 Feb 25 $ 67,400 $ 77,800 Land Beg Bal $ 115,800 Cl Bal $ 145,200 Cl Bal $ 115,800 Salaries Expense Sept 30$ 69,200 Dec 31 $ 2,000 Jul 7 Accounts Payable $ 11,800 Beg Bal$ 15,800 June 16 $ 13,100 Cl Bal $ 71,200 Cl Bal $ 17,100 Advertising Expense Nov 22 $ 23,000 Interest Payable Dec 31 $ 3,000 Cl Bal $ 23,000 Cl Bal $ 3,000 Interest Expense $ 3,000 Dec 31 Salaries Payable Dec 31 $ 2.000 Cl Bal $ 3,000 Cl Bal $ 2,000 Supplies Expense $ 10,300 Dec 31 Notes Payable (due in 2 years) Beg Bal$ 35,000 Cl Bal $ 10,300 Cl Bal $ 35,000

4. Trial Balance -

Credit Jackrabbit Rentals Trial Balance Accounts Title Debit Cash $ 98,100 Accounts Receivable $ 51,900 Supplies $ 2,800 Land $115,800 Accounts Payable Interest Payable Salaries Payable Notes Payable (due in 2 years) Common Stock Retained Earnings Dividend $ 3,400 Service Revenue Salaries Expense $ 71,200 Advertising Expense $ 23,000 Interest Expense $ 3,000 Supplies Expense $ 10,300 $ 17,100 $ 3,000 $ 2,000 $ 35,000 $ 140,000 $ 37,200 $ 145,200 Total $379,500 $379,500