company uses the following acc
company uses the following accounts:
Cash Income Taxes Payable Accounts Receivable Capital StockPrepaid Rent Retained Earnings Unexpired Insurance Dividends OfficeSupplies Income Summary Rental Equipment Rental Fees EarnedAccumulated Depreciation: Salaries Expense Rental EquipmentMaintenance Expense Notes Payable Utilities Expense AccountsPayable Rent Expense Interest Payable Office Supplies ExpenseSalaries Payable Depreciation Expense Dividends Payable InterestExpense Unearned Rental Fees Income Taxes Expense
Dec. 1 Issued to John and Patty Driver 20,000 shares of capitalstock in exchange for a total of 400.000 cash.
Dec. 1 Purchased for 260.000 11 of the equipment formerly ownedby Rent-It. Paid 160.000 cash and issued a one-year note payablefor $100,000.
Dec. 1 Paid 15.000 to Shapiro Realty as three months’ advancerent on the rental yard and office formerly occupied byRent-It.
Dec. 4 Purchased office supplies on account from Modern OfficeCo., 3000 Payment due in 30 days. (These supplies are expected tolast for several months; debit the Office Supplies assetaccount.)
Dec. 8 Received 10.000 cash as advance payment on equipmentrental from McNamer Construction Company. (Credit Unearned RentalFees.)
Dec. 12 Paid salaries for the first two weeks in December 10.200Dec. 15 Excluding the McNamer advance, equipment rental fees earnedduring the first 15 days of December amounted to 28.000, of which$12,000 was received in cast
Dec. 17 Purchased on account from Earth Movers, Inc 1.600 inparts needed to repair a rental tractor (Debit an expense account.)Payment is due in 10 days.
Dec. 23 Collected 6.000 of the accounts receivable recorded onDecember 15.
Dec. 23 Rented a backhoe to Mission Landscaping at a price of$250 per day, to be paid when the backhoe is returned. MissionLandscaping expects to keep the backhoc for about two or threeweeks.
Dec. 26 Paid biweekly salaries.10.200
Dec. 27 Paid the account payable to Earth Movers, Inc. 1,600
Dec. 28 Declared a dividend of 20 cents per share, payable onJanuary 15, 2010.Comprehensive problem 245
Dec. 29 Susquehanna Equipment Rentals was named, along withMission Landscaping and Collier Construction, as a co-defendant ina $25,000 lawsuit filed on behalf of Kevin Davenport. MissionLandscaping had left the rented backhoe in a fenced constructionsite owned by Collier Construction. After working hours on December26, Davenport had climbed the fence to play on parked constructionequipment. While playing on the backhoe, he fell and broke his arm.The extent of the company’s legal and financial responsibility forthis accident, if any, cannot be determined at this time. (Note:This event does not require a journal entry at this time, but mayrequire disclosure in notes accompanying the statements.
)Dec. 29 Purchased a 12-month public liability insurance policyfor $9,600. This policy protects the company against liability forinjuries and property damage caused by its equipment. However, thepolicy goes into effect on January 1, 2010, and affords no coveragefor the injuries sustained by Kevin Davenport on December 26.
Dec. 31 Received a bill from Universal Utilities for the monthof December, $700. Payment is due in 30 days.
Dec. 31 Equipment rental fees earned during the second half ofDecember amounted to $20,000, of which $15,600 was received incash. Data for Adjusting Entries Doonmhar 1 covered a period ofthree months.no coverage for the injuries sustained by Kevin Davenport onDecember 26. January 1, 2010, and affords
Dec. 31 Received a bill from Universal Utilities for the monthof December, $700. Payment is due in 30 days.
Dec. 31 Equipment rental fees earned during the second half ofDecember amounted to $20,000, of which $15,600 was received incash. Data for Adjusting Entries
a. The advance payment of rent on December 1 covered a period ofthree months.
b. The annual interest rate on the note payable to Rent-It is 6percent.
c. The rental equipment is being depreciated by thestraight-line method over a period of eight years.
d. Office supplies on hand at December 31 are estimated at$600
. e. During December, the company earned $3,700 of the rentalfees paid in advance by McNamer Construction Co. on December 8.
f. As of December 31, six days’ rent on the backhoe rented toMission Landscaping on December 23 has been earned. g. Salariesearned by employees since the last payroll date (December 26)amounted to $1,400 at month-end.
h. It is estimated that the company is subject to a combinedfederal and state income tax rate of 40 percent of income beforeincome taxes (total revenue minus all expenses other than incometaxes). These taxes will be payable in 2010. Instructions a.Perform the following steps of the accounting cycle for the monthof December: Tournalize the December transactions do not recordadiusting entries at this point.
only adjusted trial balance and balance sheet please
Answer:
| Adjusted Trial balance | ||
| For the month ended 31 Dec | ||
| $ | $ | |
| Cash | 237,000 | |
| Income Taxes Payable | 5,796.80 | |
| Accounts Receivable | 15,900 | |
| CapitalStock | 4,00,000 | |
| Prepaid Rent | 10,000 | |
| Retained Earnings | ||
| Unexpired Insurance | 9,600 | |
| Dividends | 4,000 | |
| Office Supplies | 600 | |
| Income Summary | ||
| Rental Equipment | 260,000 | |
| Rental Fees Earned | 53,200 | |
| Accumulated Depreciation: RentalEquipment | 2,708 | |
| SalariesExpense | 21,800 | |
| Maintenance Expense | 1,600 | |
| Notes Payable | 100,000 | |
| Utilities Expense | 700 | |
| Accounts Payable | 3,700 | |
| Rent Expense | 5,000 | |
| Interest Payable | 500 | |
| Office Supplies Expense | 2,400 | |
| Salaries Payable | 1,400 | |
| Depreciation Expense | 2,708 | |
| Dividends Payable | 4,000 | |
| Interest Expense | 500 | |
| Unearned Rental Fees | 6,300 | |
| Income Taxes Expense | 5,796.80 | |
| Total | 577,604.80 | 577,604.80 |
| Income Statment | ||
| For the month ended 31 Dec | ||
| $ | $ | |
| Rental Fees Earned | 53,200 | |
| Less: Expenses | ||
| Salaries Expense | 21,800 | |
| Maintenance Expense | 1,600 | |
| Utilities Expenses | 700 | |
| Rent Expense | 5,000 | |
| Dividends | 4,000 | |
| Office Supplies Expense | 2,400 | |
| Depreciation Expense | 2,708 | |
| Interest Expense | 500 | |
| Total Expenses | 38,708 | |
| Profit before tax | 14,492 | |
| Income Tax @ 40% | 5,796.80 | |
| Profit after tax | 8,695.20 |
| Balance Sheet | ||
| For the month ended 31 Dec | ||
| $ | $ | |
| ASSETS | ||
| Rental Equipment | 25,7292 | |
| Accounts Receivable | 15,900 | |
| Prepaid Rent | 10,000 | |
| Unexpired Insurance | 9,600 | |
| Office Supplies | 600 | |
| Cash | 237,000 | |
| TotalAssets | 530,392 | |
| Equity and Liabilities | ||
| Equity | ||
| Common Stock | 400,000 | |
| Retained Earnings | 8,695.20 | |
| Total Equity | 408,695 | |
| Liabilities | ||
| Notes Payable | 100,000 | |
| Income Taxes Payable | 5,796.80 | |
| Accounts Payable | 3700 | |
| Interest Payable | 500 | |
| Salaries Payable | 1400 | |
| Dividends Payable | 4000 | |
| Unearned Rental Fees | 6300 | |
| Total Liabiities | 121,696.8 | |
| Total Equity andLiabilities | 530,392 |
"Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!"
