Question

The general ledger of Jackrabbit Rentals at January 1, 2021, includes the following account balances:

Accounts	Debits				Credits
Cash	$	52,500
Accounts Receivable		36,700
Land		121,800
Accounts Payable						16,400
Notes Payable (due in 2 years)						41,000
Common Stock						111,000
Retained Earnings						42,600
Totals	$	211,000			$	211,000

The following is a summary of the transactions for the year:

1.		January		12		Provide services to customers on account, $73,400.
2.		February		25		Provide services to customers for cash, $80,800.
3.		March		19		Collect on accounts receivable, $46,800.
4.		April		30		Issue shares of common stock in exchange for $41,000 cash.
5.		June		16		Purchase supplies on account, $14,300.
6.		July		7		Pay on accounts payable, $12,400.
7.		September		30		Pay salaries for employee work in the current year, $75,200.
8.		November		22		Pay advertising for the current year, $23,600.
9.		December		30		Pay $4,000 cash dividends to stockholders.

The following information is available for the adjusting entries.

Accrued interest on the notes payable at year-end amounted to $3,600 and will be paid January 1, 2022. Accrued salaries at year-end amounted to $2,600 and will be paid on January 5, 2022. Supplies remaining on hand at the end of the year equal $3,400.

Create a Balance sheet and income statement

No	Date	General Journal	Debit	Credit
1	January 12	Accounts Receivable	73,400
		Service Revenue		73,400
2	February 25	Cash	80,800
		Service Revenue		80,800
3	March 19	Cash	46,800
		Accounts Receivable		46,800
4	April 30	Cash	41,000
		Common Stock		41,000
5	June 16	Supplies	14,300
		Accounts Payable		14,300
6	July 07	Accounts Payable	12,400
		Cash		12,400
7	September 30	Salaries Expense	75,200
		Cash		75,200
8	November 22	Advertising Expense	23,600
		Cash		23,600
9	December 30	Dividends	4,000
		Cash		4,000
10	December 31	Interest Expense	3,600
		Interest Payable		3,600
11	December 31	Salaries Expense	2,600
		Salaries Payable		2,600
12	December 31	Supplies Expense	10,900
		Supplies		10,900
13	December 31	Service Revenue	154,200
		Retained Earnings		154,200
14	December 31	Retained Earnings	115,900
		Interest Expense		3,600
		Salaries Expense		77,800
		Advertising Expense		23,600
		Supplies Expense		10,900
15	December 31	Retained Earnings	4,000
		Dividends		4,000

Answer 1

The Income Statement and Balance Sheet will be prepared in the following manner:

Workings

The impact of transactions occuring during the year will be as follows

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you.