Question

	The following balances appeared in the general ledger accounts of Fenton Table Rentals Corporation at April 1, 2019.
	April 1 balances:			Debit	Credit
	Cash			5,000
	Accounts receivable			5,000
	Prepaid rent			200
	Unused supplies			500
	Accounts payable				4,000
	Common stock				6,700
	Required:
	2a	Prepare journal entries to record the April transactions shown on the "Transactions" page (see tab below). Include general ledger account numbers.
	2b	Post the transactions to the T- accounts.
	2c	Prepare a trial balance at April 30, 2019.
	2d	Prepare an interim income statement and statement of changes in equity for the month ended April 30, 2019 and interim balance sheet at April 30, 2019.

April		Transaction								Amount
a.		Collected cash owed by a customer								$1,000
b.		Billed customers for tables rented to date								1,000
c.		Paid the following expenses:
		Advertising								100
		Salaries								1,000
		Telephone								500
d.		Paid part of the accounts payable owing at April 1								800
e.		Received a bill for April truck repair expenses								500
f.		Collected cash owed by a customer								2,900
g.		Billed customers for tables rented to date								2,000
h.		Transferred prepaid rent to rent expense								60
i.		Counted supplies and found this amount still on hand (recorded the amount used as an expense)								300
j.		Paid a dividend								700

Fenton Table Rentals Corporation
Trial Balance
At April 30, 2019
		Accounts Balances
Acct. No.	Account Title	Debit		Credit
101	Cash
110	Accounts receivable
162	Prepaid rent
173	Unused supplies
210	Accounts payable
320	Common stock
350	Dividends
470	Service revenue
610	Advertising expense
654	Rent expense
656	Salaries expense
668	Supplies expense
669	Telephone expense
670	Truck operating expense

Answer 1

2a. Journal Entries:

S.No.	Particulars	Debit	Credit
a.	Cash	1,000
	Accounts Receivable		1,000
b.	Accounts Receivable	1,000
	Service Revenue		1,000
c.	Advertsing Expenses	100
	Salaries Expense	1,000
	Telephone Expense	500
	Cash		1,600
d.	Accounts Payable	800
	Cash		800
e.	Truck Operating Expense	500
	Accounts Payable		500
f.	Cash	2,900
	Accounts Receivable		2,900
g.	Accounts Receivable	2,000
	Service Revenue		2,000
h.	Rent Expense	60
	Prepaid Rent		60
i.	Supplies Expense (500-300)	200
	Unused Supplies		200
j.	Dividends	700
	Cash		700

2b. Ledger Accounts:

Account	Debit	Account	Credit
Cash - 101
Balance	5,000	Advertising Expense	100
Accounts Receivable	1,000	Salaries Expense	1,000
Accounts Receivable	2,900	Telephone Expense	500
		Accounts Payable	800
		Dividends	700
		Balance	5,800
	8,900		8,900
Accounts Receivable - 110
Balance	5,000	Cash	1,000
Service Revenue	1,000	Cash	2,900
Service Revenue	2,000	Balance	4,100
	8,000		8,000
Prepaid Rent - 162
Balance	200	Rent Expense	60
		Balance	140
	200		200
Unused Supplies - 173
Balance	500	Supplies Expense	200
		Balance	300
	500		500
Accounts Payable - 210
Cash	800	Balance	4,000
Balance	3,700	Truck Operating Expense	500
	4,500		4,500
Common Stock - 320
Balance	6,700	Balance	6,700
	6,700		6,700
Dividends - 350
Cash	700	Balance	700
	700		700
Service Revenue - 470
Income Summary	3,000	Accounts Receivable	1,000
		Accounts Receivable	2,000
	3,000		3,000
Advertising Expense - 610
Cash	100	Income Summary	100
	100		100
Rent Expense - 654
Prepaid Rent	60	Income Summary	60
	60		60
Salaries Expense - 656
Cash	1,000	Income Summary	1,000
	1,000		1,000
Supplies Expense - 668
Unused Supplies	200	Income Summary	200
	200		200
Telephone Expense - 669
Cash	500	Income Summary	500
	500		500
Truck Operating Expense - 670
Accounts Payable	500	Income Summary	500
	500		500

2c. Trial Balance:

Account No.	Account Title	Debit	Credit
101	Cash	5,800
110	Accounts Receivable	4,100
162	Prepaid Rent	140
173	Unused Supplies	300
210	Accounts Payable		3,700
320	Common Stock		6,700
350	Dividends	700
470	Service Revenue		3,000
610	Advertising Expense	100
654	Rent Expense	60
656	Salaries Expense	1,000
668	Supplies Expense	200
669	Telephone Expense	500
670	Truck Operating Expense	500
TOTAL		13,400	13,400

2d. Interim Income Statement:

Particulars	$	$
Service Revenue		3,000
Less: Expenses:
Advertising Expense	100
Rent Expense	60
Salaries Expense	1,000
Supplies Expense	200
Telephone Expense	500
Truck Operating Expense	500
Total Expenses		2,360
Net Income		640

Statement of Changes in Equity:

Particulars	$
Beginning Balance - Common Stock	6,700
Add: Net Income	640
Less: Dividends	(700)
Ening Balance	6,640

Interim Balance Sheet:

Particulars	$	$
ASSETS
Current Assets:
Cash	5,800
Accounts Receivable	4,100
Prepaid Rent	140
Unused Supplies	300
Total Current Assets:		10,340
TOTAL ASSETS		10,340
LIABILITIES & EQUITY
Current Liabilities:
Accounts Payable	3,700
Total Liabilities		3,700
Equity:
Common Stock	6,640
Total Equity		6,640
TOTAL LIABILITIES & EQUITY		10,340