Question

Check my work 1 Required information [The following information applies to the questions displayed below.) Part 1 of 8 The general ledger of Jackrabbit Rentals at January 1, 2021, includes the following account balances: 3.75 points Credits Debits $ 56,500 40,700 125,800 Accounts Cash Accounts Receivable Land Accounts Payable Notes Payable (due in 2 years) Connon Stock Retained Earnings Totale eBook 16,800 45,000 115,000 46,200 $223,000 $223,000 Print The following is a summary of the transactions for the year: fo References 1. January 12 Provide services to customers on account, $77,400. 2. February 25 Provide services to customers for cash, $82,800. 3. March 19 Collect on accounts receivable, $ 47,200. 4. April 30 Issue shares of common stock in exchange for $45,000 cash. 5. June 16 Purchase supplies on account, $15,100. 6. July 7 Pay on accounts payable, $12,800. 7. September 30 Pay salaries for employee work in the current year, $79,200. 8. November 22 Pay advertising for the current year, $24,000. 9. December 30 Pay $4,400 cash dividends to stockholders. The following information is available for the adjusting entries. Accrued interest on the notes payable at year-end amounted to $4,000 and will be paid January 1, 2022. Accrued salaries at year-end amounted to $3,000 and will be paid on January 5, 2022. Supplies remaining on hand at the end of the year equal $3,800.

1. Post the transactions, adjusting entries and closing entries to the T-accounts. Be sure to include beginning balances.

2.Record each of the summary transactions listed above

3. Prepare an unadjusted trial balance.

4. Record adjusting entries. Accrued interest on the notes payable at year-end amounted to $4,000 and will be paid January 1, 2022. Accrued salaries at year-end amounted to $3,000 and will be paid on January 5, 2022. Supplies remaining on hand at the end of the year equal $3,800.

5. Prepare an adjusted trial balance.

6. Prepare an income statement for the year ended December 31, 2021.

7. Record closing entries.

8. Prepare a post-closing trial balance.

Answer 1

Date Service Revenue Jan.12 Account Title Accounts Receivable Service Revenue Debit ($) Credit ($) 77,400 77,400 Date Account Title Nov.22 Advertising Expense Cash Debit ($) Credit ($) 24,000 24,000 Accounts Receivable 40,700 Mar.19 77,400 47,200 Jan.1 Jan.12 Jan.12 77,400 82,800 Feb.25 Dec.31 1,60,200 1,60,200 82,800 Dec. 30 Dividend 4,400 1,60,200 Feb.25 Cash Service Revenue 70,900 1,18,100 82,800 Cash 4,400 47,200 Mar.19 Cash Accounts Receivable Common Stock Dividend 4,400 Dec.31 1,18,100 Cash 56,500 July.7 82,800 Sep.30 47,200 Nov.22 45,000 Dec. 30 47,200 Dec. 30 Jan.1 Feb.25 Mar. 19 Apr.30 Jan.1 12,800 79,200 24,000 4,400 1,15,000 45,000 45,000 Dec.31 Apr.30 Cash Common Stock 45,000 Dec.31 1,60,000 4,400 4,400 4,400 1,11,100 2,31,500 July.7 15,100 June. 16 Supplies Accounts Payable Dec.31 2,31,500 Supplies 15,100 Apr.30 1,60,000 1,60,000 Accounts Payable 12,800 Jan.1 June. 16 19,100 31,900 Advertising Expense 24,000 16,800 15,100 15,100 June.16 Dec.31 12,800 31,900 July.7 Accounts Payable Cash 12,800 15,100 15,100 Nov.22 79,200 Sep.30 Salary Expense Cash Dec.31 15,100 Salary Expense 79,200 Dec.31 79,200 79,200 Sep.30 Dec.31 24,000 24,000 24,000 79,200 79,200

Jackrabbit Rentals Unadusted Trial Balance At Dec 31, 2021 Accounts Debits Credits Cash 1,11,100 Accounts Receivable 70,900 Land 1,25,800 Supplies 15,100 Accounts Payable 19,100 Notes Payable (due in 2 years) 45,000 Common Stock 1,60,000 Retained Earnings 46,200 Dividend 4,400 Service Revenue 1,60,200 Salary Expense 79,200 Advertising Expense 24,000 4,30,500 4,30,500

Interest Expense 4,000 Supplies 15,100 Dec.31 Dec.31 Dec.31 11,300 Dec.31 Dec. 31 4,000 4,000 3,800 15,100 4,000 15,100 Accrued Interest Dec.31 Supplies Expense 11,300 4,000 Dec.31 Dec.31 Dec. 31 Jackrabbit Rentals ADJUSTING ENTRIES Adusted Trial Balance Date Account Title Debit ($) Credit ($) At Dec 31, 2021 Dec.31 Interest Expense 4,000 Accounts Debits Credits Accrued Interest 4,000 Cash 1,11,100 Accounts Receivable 70,900 Dec.31 Salary Expense 3,000 Land 1,25,800 Accrued Salaries 3,000 Supplies 3,800 Accounts Payable 19,100 Dec.31 Supplies Expense 11,300 Notes Payable (due in 2 years) 45,000 Supplies 11,300 Accrued Interest 4,000 Accrued Salaries 3,000 Common Stock 1,60,000 Retained Earnings 46,200 Dividend 4,400 Service Revenue 1,60,200 Interest Expense 4,000 Salary Expense 82,200 Supplies Expense 11,300 Advertising Expense 24,000 4,37,500 4,37,500 4,000 4,000 11,300 11,300 4,000 11,300 Dec.31 Dec.31 Salary Expense 79,200 3,000 Dec.31 82,200 82,200 82,200 Accrued Salaries Dec.31 3,000 Dec.31 3,000 3,000 3,000

Jackrabbit Rentals Income Statement At Dec 31,2021 Service Revenue 1,60,200.00 1,60,200.00 Jackrabbit Rentals CLOSING ENTRIES Closing Trial Balance Date Account Title Debit ($) Credit ($) At Dec 31, 2021 Dec.31 Service Revenue 1,60,200 Accounts Debits Credits Interest Expense 4,000 Cash 1,11,100 Salary Expense 82,200 Accounts Receivable 70,900 Supplies Expense 11,300 Land 1,25,800 Advertising Expense 24,000 Supplies 3,800 Income Summary 38,700 Accounts Payable 19,100 Notes Payable (due in 2 years) 45,000 Dec.31 Retained Earnings 4,400 Accrued Interest 4,000 Dividend 4,400 Accrued Salaries 3,000 Common Stock 1,60,000 Dec.31 Income Summary 38,700 Retained Earnings 80,500 Retained Earnings 38,700 3,11,600 3,11,600 Total Revenue Expenses: Interest Expense Salary Expense Supplies Expense Advertising Expense Total Expense Net Income 4,000.00 82,200.00 11,300.00 24,000.00 1,21,500.00 38,700.00