Académique Documents
Professionnel Documents
Culture Documents
as of
Account Titles
Cash
Accounts receivable
Prepaid rent
Unexpired insurance
Office supplies
Rental equipment
Notes payable
Accounts payable
100,000
1700
Interest payable
Salaries payable
2000
8000
Dividends payable
Unearned rental fees
Income taxes payable
200000
-
Capital Stock
Retained earnings
2000
Dividends
Income Summary
38000
10400
600
700
Salaries expense
Maintenance expense
Utilities expense
Rent expense
Interest expense
Depreciation expense
Office supplies expense
Income taxes expense
TOTAL
NET INCOME
349,700
$349,700.00
Income Statement
Dr.
2000
5200
43200
1400
4000
500
2500
400
9080
23,080 $
23,080
11800
600
700
4000
500
2500
400
9080
364,680 $
364,680 $
$
11,800
600
700
4000
500
2500
400
9080
29,580
13,620
43,200
Income Statement
Cr.
$
BalanceSheet
Dr.
Cr.
65,000
9,900
8,000
9600
600
240000
$
2,500
100,000
1700
500
1400
2000
4300
9080
200000
2000
43,200
43,200 $
43,200 $
335,100 $
335,100
321,480
13,620
335,100
GENERAL JOURNAL
Account Titles and Explanation
Date
December
1 Cash
Capital Stock
Owner invested cash in the business.
1 Rental Equipment
Cash
Notes Payable
Purchased equipment from Rent-it. Note payable
is due in one year.
1 Prepaid Rent
Cash
Paid three months' rent in advance to Shapiro Realty.
4 Office Supplies
Accounts Payable
Purchased supplies on account
8 Cash
Unearned Rental Fees
Received Advance payment for equipment rental
12 Salaries Expense
Cash
Paid salaries for the first two weeks
15 Accounts Receivables
Cash
Rental Fees
To record the rental fees earned
17 Maintenance Expense
Accounts Payable
Purchased of repair part.
23 Cash
Accounts Receivables
Collections of cash from the customer
26 No journal entry for rental of backhoe
26 Salaries Expense
Cash
Date
December
GENERAL JOURNAL
ADJUSTING ENTRIES
Account Titles and Explanation
31 (1) Rent Expense
Prepaid Rent
31 (2) Interest Expense
Interest Payable
31 (3) Depreciation Expense - Rental equipment
Accumulated Depreciation - Rental equipment
31 (4) Office Supplies Expense
Office Supplies
31 (5) Unearned Rental Fees
Rental Fees
31 (6) Account Receivable
Rental Fees
Date
December
GENERAL JOURNAL
POST CLOSING ENTRIES
Account Titles and Explanation
31 Rental Fees Earned
Income Summary
31 Income Summary
Salaries Expense
Maintenance Expense
Utilities Expense
Rent Expense
Office Suplies Expense
Depreciation Expense
Interest Expense
Income Taxes Expense
31 Income Summary
Capital Stock
31 Capital Stock
Dividends
Debit
200000
GENERAL LEDGER
CASH
Credit
200000
Date
December
240000
140000
100000
12000
12000
1000
1000
Date
December
Explanations
1
1
1
8
12
15
23
26
27
29
31
UNEXPIRED INSURANCE
Explanations
29
8000
8000
OFFICE SUPPLIES
Date
December
5200
Explanations
4
31
Adj. Entry
5200
6000
12000
Date
December
RENTAL EQUIPMENT
Explanations
1
18000
Date
December
600
ACCUMULATED DEPRECIATION
Explanations
31
Adj. Entry
600
NOTES PAYABLE
2000
2000
Date
December
5200
Date
December
5200
Explanations
1
ACCOUNTS PAYABLE
Explanations
4
17
27
31
600
600
2000
2000
Date
December
INTEREST PAYABLE
Explanations
31
Adj. Entry
Date
December
SALARIES PAYABLE
Explanations
31
adj. entry
9600
9600
700
700
15600
4400
20000
Date
December
Debit
4000
INCOME SUMMARY
Explanations
31
closing entry
31
closing entry
31
closing entry
Credit
4000
500
500
2500
2500
Date
December
400
400
MAINTENANCE EXPENSE
Explanations
17
31
closing entry
3700
3700
RENT EXPENSE
1500
1500
Date
December
Explanations
31
Adj. Entry
31
closing entry
1400
1400
9080
9080
Debit
43200
Date
December
DEPRECIATION EXPENSE
Explanations
31
Adj. Entry
31
closing entry
Date
December
Credit
43200
29580
11800
600
700
4000
400
2500
500
9080
13620
13620
2000
2000
GENERAL LEDGER
CASH
Debit
200000
Credit
140000
12000
8000
5200
12000
2000
5200
600
9600
15600
EXPIRED INSURANCE
Debit
9600
Credit
Balance
200000
60000
48000
56000
50800
62800
64800
59600
59000
49400
65000
Date
December
Date
December
Credit
400
RENTAL EQUIPMENT
Debit
240000
MULATED DEPRECIATION
Debit
NOTES PAYABLE
Debit
ACCOUNTS PAYABLE
Debit
15
23
31
31
adj. entry
PREPAID RENT
Explanations
1
31
Adj. Entry
Balance
9600
Date
December
OFFICE SUPPLIES
Debit
1000
ACCOUNTS RECEIVAB
Explanations
28
Balance
1000
600
Date
December
Credit
Balance
240000
Credit
2500
Balance
2500
Credit
100000
Balance
100000
Date
December
Date
December
Credit
1000
DIVIDENDS PAYAB
Explanations
Balance
1000
UNEARNED RENTAL F
Explanations
8
31
adj. entry
CAPITAL STOCK
Explanations
1
31
31
closing entry
closing entry
600
600
700
INTEREST PAYABLE
Debit
INCOME SUMMARY
Debit
Credit
Credit
1400
Credit
43200
29580
13620
Balance
500
Balance
1400
Balance
43200
13620
0
Date
December
Date
December
Date
December
INTENANCE EXPENSE
Debit
600
Credit
600
RENT EXPENSE
Debit
4000
RETAINED EARNING
Explanations
Date
December
500
SALARIES PAYABLE
Debit
1600
1000
1700
Credit
Balance
600
0
Balance
4000
Date
December
DIVIDENDS
Explanations
28
31 closing entry
adj. entry
adj. entry
closing entry
SALARIES EXPENS
Explanations
12
26
31
31
adj. entry
closing entry
UTILITIES EXPENS
Explanations
31
31
closing entry
PRECIATION EXPENSE
Debit
2500
4000
Credit
2500
Credit
9080
Balance
2500
0
Balance
9080
0
Date
December
Date
December
INTEREST EXPENS
Explanations
31
Adj. Entry
31
closing entry
ACCOUNTS RECEIVABLES
xplanations
Debit
6000
adj. entry
4400
1500
PREPAID RENT
xplanations
Debit
12000
Adj. Entry
DIVIDENDS PAYABLE
xplanations
Debit
3700
CAPITAL STOCK
xplanations
Debit
closing entry
closing entry
2000
Credit
Balance
6000
2000
4000
8400
9900
Credit
Balance
12000
4000
8000
Credit
Balance
2000
2000
Credit
Balance
8000
8000
4300
Credit
Balance
9080
9080
Credit
Balance
200000 200000
13620
213620
211620
RETAINED EARNINGS
xplanations
Debit
Credit
DIVIDENDS
xplanations
Credit
Debit
2000
losing entry
adj. entry
adj. entry
closing entry
43200
SALARIES EXPENSE
xplanations
Debit
5200
5200
adj. entry
1400
closing entry
UTILITIES EXPENSE
xplanations
Debit
700
closing entry
Balance
Balance
2000
2000
0
Credit
Balance
18000
18000
20000
38000
3700
41700
1500
43200
0
Credit
Balance
5200
10400
11800
11800
0
Credit
Balance
700
700
0
INTEREST EXPENSE
xplanations
Debit
Adj. Entry
500
closing entry
Credit
Balance
400
400
0
Credit
Balance
500
500
0
EXPENSES:
Salaries expense
Maintenance expense
Utilities expense
Rent expense
Office supplies expense
Depreciation expense
Interest expense
Profit before income taxes expense
Income taxes expense @ 40%
NET INCOME
ALS
1, 2011
Assets
$
$
11,800
600
700
4000
400
2500
500
43,200
Cash
Accounts Receivable
Prepaid rent
Unexpired insurance
Office supplies
Rental equipment
Less: Accumulated depreciation
Total assets
$
$
20500
22,700
9080
31,780
ALS
y
2009
Salaries payable
Dividends payable
Unearned rental fees
$0
13,620
13,620
2,000
$
11,620
Retained earnings
Total liabilities and shareholders' equity
f.
iation
240,000
2,500
65,000
9,900
8,000
9,600
600
237,500
330,600
100,000
1,700
500
1,400
2,000
4,300
9,080
$
118,980
200,000
11,620
211,620