On 1 December 2013, John and Patty Driver formed a corporation called Susquehann
ID: 341770 • Letter: O
Question
On 1 December 2013, John and Patty Driver formed a corporation called Susquehanna Equipment Rentals. The new corporation was able to begin operations immediately by purchasing the assets and taking over the location of Rent-It, an equipment rental company that was going out of business. The newly formed company uses the following accounts:please follow answer sheet
On 1 December 2013, John and Patty Driver formed a corporation called Susquehanna Equipment Rentals. The new corporation was able to begin operations immediately by purchasing the assets and taking over the location of Rent-It, an equipment rental company that was going out of business. The newly formed company uses the following accounts:please follow answer sheet
On 1 December 2013, John and Patty Driver formed a corporation called Susquehanna Equipment Rentals The new corporation was able to begin operations immediately by purchasing the assets and taking over the location of Rent-lt, an equipment rental company that was going out of business. The newly formed company uses the following accounts Cash Accounts Receivable Prepaid Rent Unexpired Insurance Office Supplies Rental Equipment Accumulated Depreciation: Rental Equipment Notes Payable Accounts Payable Interest Payable Salaries Payable Dividends Payable Unearned Rental Fees Income Taxes Payable Share Capital Retained Earnings Dividends Income Summary Rental Fees Earned Salaries Expense Maintenance Expense Utilities Expense Rent Expense Office Supplies Expense Depreciation Expense Interest Expense Income Taxes Expense The corporation performs adjusting entries monthly. Closing entries are performed annually on 31 December. During December, the corporation entered into the following transactionsExplanation / Answer
Hi, giving below answer. Since this is comprehensive statements, if you need any explanation of item (which you think i have skipped), please put in comment. will get back to you.
Journal Entries:
CLosing Entries:
Ledger:
Balance of Retained Earnings
4.Trial Balance
Change in Equity:
Date Account Debit Credit Dec 1 Cash 290000 Dec 1 Share capital 290000 Dec 1 Rental Equipment 201600 Dec 1 Cash 139000 Dec 1 Notes payable 62600 Dec 1 Prepaid Rent 11100 Dec 1 Cash 11100 Dec 4 Office Supplies 1000 Dec 4 Accounts Payable 1000 Dec 8 Cash 8600 Dec 8 Unearned Rental Fee 8600 Dec 12 Salaries Expense 5100 Dec 12 Cash 5100 Dec 15 Accounts Receivable 6700 Dec 15 Cash 12200 Dec 15 Rental Fees earned 18900 Dec 17 Maintenance Expense 600 Dec 17 Accounts Payable 600 Dec 23 Cash 2900 Dec 23 Accounts Receivable 2900 Dec 26 Accounts Receivable 1680 280*6 Dec 26 Unearned Rental Fee 1680 Dec 26 Salaries Expense 5100 Dec 26 Cash 5100 Dec 27 Accounts Payable 600 Dec 27 Cash 600 Dec 28 Dividends 2900 (29000*10cent/100 Dec 28 Dividend Payable 2900 Dec 29 Unexpired Insurance 9600 Dec 29 Cash 9600 Dec 31 Utilities expense 600 Dec 31 Accounts Payable 600 Dec 31 Accounts Receivable 4300 Dec 31 Cash 16300 Dec 31 Rental Fees earned 20600 Dec 31 Rent expense 3700 11100/3 Dec 31 Prepaid Rent 3700 Dec 31 Interest Expense 313 62600*6%*1/12 Dec 31 Interest Payable 313 Dec 31 Depreciation Expense 25200 201600/8 Dec 31 Accumulated Depreciation-Rental Equipment 25200 Dec 31 Office Supplies Expense 340 1000-660 Dec 31 Office Supplies 340 Dec 31 Unearned Rental Fee 4300 Dec 31 Rental Fees earned 4300 Dec 31 Unearned Rental Fee 1680 Dec 31 Rental Fees earned 1680 Dec 31 Salaries Expense 1600 Dec 31 Salaries Payable 1600Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.