Question

Credit SUSQUEHANNA EQUIPMENT RENTALS After-Closing Trial Balance December 31, Year Debit Cash Rental equipment Office supplies Notes payable Prepaid rent Accounts payable Unearned rental fees Accounts receivable Dividends payable Interest payable Unexpired insurance Salaries payable Accumulated depreciation: rental equipment Capital stock Income taxes payable Retained earnings 9 __ Totals 0 $

Answer 1

SUSQUEHANNA EQUIPMENT RENTALS
After-closing Trial Balance
December 31, Year 1
Particulars	Debit	Credit
Cash	157,500.00
Rental Equipment	278,400.00
Office Supplies	640.00
Notes Payable		148,400.00
Prepaid Rent	7,800.00
Accounts Payable		1,820.00
Unearned Rental Fees		4,400.00
Accounts Receivable	9,840.00
Dividends Payable		2,800.00
Interest Payable		742.00
Unexpired Insurance	9,600.00
Salaries Payable		1,200.00
Accumulated Depreciation: Rental Equipment		2,900.00
Capital Stock		280,000.00
Income Tax Payable		7,295.40
Retained Earnings		14,222.60
TOTAL	463,780.00	463,780.00

Working Note:

Calculation of Income Tax Payable & Retained Earnings
Particulars	Amount in $
Rental Fees Earned	44,740.00
Less:
Salaries Expense	11,000.00
Rent Expense	3,900.00
Interest Expense	742.00
Repair Expense	700.00
Office Supplies Expense	560.00
Utilities Expense	620.00
Depreciation Expense	2,900.00
Net Profit before Tax	24,318.00
Less:
Income Tax Expense	7,295.40
Net Profit after Tax	17,022.60
Less:
Dividend (10 cents per share)	2,800.00
Retained Earnings	14,222.60