Question

Required information [The following information applies to the questions displayed below.] The general ledger of Jackrabbit Rentals at January 1, 2021, includes the following account balances: Accounts Debits Credits Cash $ 50,500 Accounts Receivable 34,700 Land 119,800 Accounts Payable 16,200 Notes Payable (due in 2 years) 39,000 Common Stock 109,000 Retained Earnings 40,800 Totals $ 205,000 $ 205,000 The following is a summary of the transactions for the year: 1. January 12 Provide services to customers on account, $71,400. 2. February 25 Provide services to customers for cash, $79,800. 3. March 19 Collect on accounts receivable, $46,600. 4. April 30 Issue shares of common stock in exchange for $39,000 cash. 5. June 16 Purchase supplies on account, $13,900. 6. July 7 Pay on accounts payable, $12,200. 7. September 30 Pay salaries for employee work in the current year, $73,200. 8. November 22 Pay advertising for the current year, $23,400. 9. December 30 Pay $3,800 cash dividends to stockholders. The following information is available for the adjusting entries. Accrued interest on the notes payable at year-end amounted to $3,400 and will be paid January 1, 2022. Accrued salaries at year-end amounted to $2,400 and will be paid on January 5, 2022. Supplies remaining on hand at the end of the year equal $3,200.

Answer 1