Question

The general ledger of Jackrabbit Rentals at January 1, 2018, includes the following account balances:    

Accounts           Debits    Credits

Cash    $             45,500                                              

Accounts Receivable     29,700                                              

Land                  114,800                                                          

Accounts Payable                                                       $             15,700  

Notes Payable                                                                           34,000

Common Stock                                                                          104,000              

Retained Earnings                                                                     36,300  

    Totals               $             190,000                             $             190,000              

              

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

January 12 Provide services to customers on account, $66,400.

February 25 Provide services to customers for cash, $77,300.

March 19 Collect on accounts receivable, $46,100.

April 30 Issue shares of common stock in exchange for $34,000 cash.

June 16 Purchase supplies on account, $12,900.

July 7 Pay on accounts payable, $11,700.

September 30 Pay salaries for employee work in the current year, $68,200.

November 22 Pay advertising for the current year, $22,900.

December 30 Pay $3,300 cash dividends to stockholders.

Accrued interest on the notes payable at year-end amounted to $2,900. Accrued salaries at year-end amounted to $1,900. Supplies remaining on hand at the end of the year equal $2,700.

1. Enter the unadjusted balances from the trial balance and post the adjusting entries to the T-accounts, and post the closing entries to the T-accounts????
2.   Record adjusting entries???
3. Record closing entries???

Answer 1

Cash A/c							Accounts Receivable A/c
Date	Particulars	Amount($)	Date	Particulars	Amount($)		Date	Particulars	Amount($)	Date	Particulars	Amount($)
01.01.2018	To balance b/d	45500	07.07.2018	By Accounts Payable A/c	11700		01.01.2018	To balance b/d	29700	19.03.2018	By Cash A/c	46100
25.02.2018	To Services Income A/c	77300	30.09.2018	By Salaries A/c	68200		12.01.2018	To Services Income A/c	66400	31.12.2018	By balance c/d	50000
19.03.2018	To Accounts Receivables A/c	46100	22.11.2018	By Advertising A/c	22900
30.04.2018	To Common Stock A/c	34000	30.12.2018	By Dividend A/c	3300
			31.12.2018	By Balance c/d	96800
		202900			202900				96100			96100
Services Income A/c							Supplies A/c
Date	Particulars	Amount($)	Date	Particulars	Amount($)		Date	Particulars	Amount($)	Date	Particulars	Amount($)
31.12.2018	To Profit & Loss A/c	143700	12.01.2018	By Accounts Receivable A/c	66400		16.06.2018	To Accounts Payable A/c	12900	31.12.2018	By Supplies Consumed A/c	10200
			25.02.2018	By Cash A/c	77300					31.12.2018	By balance c/d	2700
		143700			143700				12900			12900
Accounts Payable A/c							Notes Payable
Date	Particulars	Amount($)	Date	Particulars	Amount($)		Date	Particulars	Amount($)	Date	Particulars	Amount($)
07.07.2018	To Cash A/c	11700	01.01.2018	By Balance b/d	15700		31.12.2018	To balance c/d	34000	01.01.2018	By Balance b/d	34000
31.12.2018	To balance c/d	16900	16.06.2018	By Supplies A/c	12900
		28600			28600				34000			34000
Common Stock A/c							Salaries A/c
Date	Particulars	Amount($)	Date	Particulars	Amount($)		Date	Particulars	Amount($)	Date	Particulars	Amount($)
31.12.2018	To balance c/d	138000	01.01.2018	By balance b/d	104000		30.09.2018	To Cash A/c	68200	31.12.2018	By Profit & Loss A/c	70100
			30.04.2018	By Cash A/c	34000		31.12.2018	To Accrued Salaries A/c	1900
		138000			138000				70100			70100
Advertising A/c							Dividend A/c
Date	Particulars	Amount($)	Date	Particulars	Amount($)		Date	Particulars	Amount($)	Date	Particulars	Amount($)
22.11.2018	To Cash A/c	22900	31.12.2018	By Profit & Loss A/c	22900		30.12.2018	To Cash A/c	3300	31.12.2018	By Profit & Loss A/c	3300
Interest A/c							Supplies Consumed A/c
Date	Particulars	Amount($)	Date	Particulars	Amount($)		Date	Particulars	Amount($)	Date	Particulars	Amount($)
31.12.2018	To Accrued Interest A/c	2900	31.12.2018	By Profit & Loss A/c	2900		31.12.2018	To Supplies A/c	10200	31.12.2018	By Profit & Loss A/c	10200
Accrued Salaries A/c							Accrued Interest A/c
Date	Particulars	Amount($)	Date	Particulars	Amount($)		Date	Particulars	Amount($)	Date	Particulars	Amount($)
31.12.2018	To balance c/d	1900	31.12.2018	By Salaries A/c	1900		31.12.2018	To Balance c/d	2900	31.12.2018	By Interest A/c	2900

Recording of Adjusting Entries
Date	Particulars	Debit Amount($)	Credit Amount($)
12.01.2018	Accounts Receivables A/c Dr.	66400
	To Services Income A/c		66400
	(Being Service provided on credit)
25.02.2018	Cash A/c Dr.	77300
	To Services Income A/c		77300
	(Being services provided for cash)
19.03.2018	Cash A/c Dr.	46100
	To Accounts Receivables A/c		46100
	(Being cash collected from receivables)
30.04.2018	Cash A/c Dr.	34000
	To Common Stock A/c		34000
	(Being shares issued of common stock for cash)
16.06.2018	Supplies A/c Dr.	12900
	To Accounts Payable A/c		12900
	(Being supplied purchased on credit)
07.07.2018	Accounts Payable A/c Dr.	11700
	To Cash A/c		11700
	(Being accounts payable paid)
30.09.2018	Salaries A/c Dr.	68200
	To Cash A/c		68200
	(Being salaries paid)
22.11.2018	Advertising A/c Dr.	22900
	To Cash A/c		22900
	(Being advertising expenses paid)
30.12.2018	Dividend A/c Dr.	3300
	To Cash A/c		3300
	(Being dividend paid)
31.12.2018	Interest A/c Dr.	2900
	To Accrued Interest A/c		2900
	(Being interest accrued on notes payable)
31.12.2018	Salaries A/c Dr.	1900
	To Accrued Salaries A/c		1900
	(Being salary accrued at year end)
31.12.2018	Supplies Consumed A/c Dr.	10200
	To Supplies A/c		10200
	(Being supplies consumed during the year reduced from the stock)
Recording of Closing Entries
Date	Particulars	Debit Amount($)	Credit Amount($)
31.12.2018	Services Income A/c Dr.	143700
	To Profit & Loss A/c		143700
	(Being Income during the year transferred)
31.12.2018	Profit & Loss A/c Dr.	109400
	To Salaries A/c		70100
	To Advertising A/c		22900
	To Dividend A/c		3300
	To Interest A/c		2900
	To Supplies Consumed		10200
	(Being expenses for the year transferred)
31.12.2018	Profit & Loss A/c Dr.	34300
	To Retained Earnings A/c		34300
	(Being Profit for the year transferred to retained earnings)