The following information applies to the questions displayed below The general l

Question

The following information applies to the questions displayed below The general ledger of Jackrabbit Rentals at January 1, 2018, Includes the following account balances: Debits Credits $ 51,500 35,700 120,800 Cash Land Accounts Payable Notes Payable Common Stock Retalned Eamings $ 15.300 40,000 110,000 41,700 Totals $208,000 $208,000 The following is a summary of the transactions for the year: a. January 12 Provide services to customers on account, $72,400 b. February 25 Provide services to customers for cash, $80,300 C. March 19 Collect on accounts recelvable, $46,700. d. April 30 Issue shares of common stock in exchange for $40,000 cash. e. June 16 Purchase supplies on account, $14,100 f. July 7 Pay on accounts payable, $12,300 g. September 30 Pay salaries for employee work in the current year, $74,200. h. November 22 Pay advertising for the current year, $23,500 i. December 30 Pay $3,900 cash dividends to stockholders. j. Accrued interest on the notes payable at year-end amounted to $3,500. Accrued salaries at year-end amounted to $2,500. Supplies remaining on hand at the end of the year equal $3,300.

Explanation / Answer

Unadjusted Trial Balance DR CR Cash 104600 Account Receivable 61400 Supplies 14100 Land 120800 Account Payable 18100 Salaries Payable Interest Payable Note Payable 40000 Common Stock 150000 Retained Earnings 41700 Dividends 3900 Service revenue 152700 Salaries Expense 74200 Advertising Expense 23500 Interest Expense Supplied Expense 402500 402500 adjusted Trial Balance DR CR Cash 104600 Account Receivable 61400 Supplies 3300 Land 120800 Account Payable 18100 Salaries Payable 2500 Interest Payable 3500 Note Payable 40000 Common Stock 150000 Retained Earnings 41700 Dividends 3900 Service revenue 152700 Salaries Expense 76700 Advertising Expense 23500 Interest Expense 3500 Supplied Expense 10800 408500 408500 Income Statement Service revenue 152700 Expenses Salaries Expense 76700 Advertising Expense 23500 Interest Expense 3500 Supplies Expense 10800 Total Expense 114500 Net Income 38200 Balance Sheet Assets Liabilities Cash 104600 Account Payable 18100 Account Receivable 61400 Salaries Payable 2500 Supplies 3300 Interest Payable 3500 Total Current Asset 169300 Total Current Liabilities 24100 Note Payable 40000 Land 120800 Total Liabilities 64100 Stockholder Equity Common Stock 150000 Retained Earnings 76000 Total Stockholder Equity 226000 Total Assets 290100 290100 Post closing Trial Balance DR CR Cash 104600 Account Receivable 61400 Supplies 3300 Land 120800 Account Payable 18100 Salaries Payable 2500 Interest Payable 3500 Note Payable 40000 Common Stock 150000 Retained Earnings 76000 290100 290100

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