In: Accounting
Metro Rent – A Car
Unadjusted Trial Balance
Dec. 31, 2007
Account Name |
Debits |
Credits |
Cash in Bank |
120,000 |
|
Shop Supplies Inventory |
25,300 |
|
Prepaid Insurance |
19,200 |
|
Mitsubishi Cars |
1,500,000 |
|
Accumulated Depreciation |
0 |
|
Accrued Commission Expense |
0 |
|
Unearned Rental Income |
25,000 |
|
M. Capital |
1,507,000 |
|
Car Rental Income |
160,000 |
|
Gasoline Expense |
18,000 |
|
Insurance Expense |
0 |
|
Repairs & Maintenance |
9,500 |
|
Depreciation Expense |
0 |
|
Shop Supplies Used |
0 |
|
Commission Expense |
0 |
|
Totals |
$1,692,000 |
$1,692,000 |
Prepare the:
adjusting entries:
a)7 months expired
insurance expnese(db)19200*(7/12)=11200
prepaid insurance(cr)11200
b)depreciaiton =(cost-salvage)/years
=(1500000-0)/5=300000
depreciation expense(db)300000
accumulated depreciation(cr)300000
c)6 days rent earned and amount is =(6/10)*25000=15000
unearned rental income(db)15000
rental income(cr)15000
d)commission expense(db)2000
accrued commision expense(cr)2000
e)shop supplies used(db)25300-9500=15800
shop supplies inventory(cr)15800