Principles of Accounting Volume 1
19th Edition
ISBN: 9781947172685
Author: OpenStax
Publisher: OpenStax College
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The general ledger of Jackrabbit Rentals at January 1, 2021, includes the following account balances:
Accounts | Debits | Credits | |||||
Cash | $ | 45,500 | |||||
29,700 | |||||||
Land | 114,800 | ||||||
Accounts Payable | 15,700 | ||||||
Notes Payable (due in 2 years) | 34,000 | ||||||
Common Stock | 104,000 | ||||||
36,300 | |||||||
Totals | $ | 190,000 | $ | 190,000 | |||
The following is a summary of the transactions for the year:
1. | January | 12 | Provide services to customers on account, $66,400. | |||
2. | February | 25 | Provide services to customers for cash, $77,300. | |||
3. | March | 19 | Collect on accounts receivable, $46,100. | |||
4. | April | 30 | Issue shares of common stock in exchange for $34,000 cash. | |||
5. | June | 16 | Purchase supplies on account, $12,900. | |||
6. | July | 7 | Pay on accounts payable, $11,700. | |||
7. | September | 30 | Pay salaries for employee work in the current year, $68,200. | |||
8. | November | 22 | Pay advertising for the current year, $22,900. | |||
9. | December | 30 | Pay $3,300 cash dividends to stockholders. |
The following information is available for the
Accrued interest on the notes payable at year-end amounted to $2,900 and will be paid January 1, 2022. Accrued salaries at year-end amounted to $1,900 and will be paid on January 5, 2022. Supplies remaining on hand at the end of the year equal $2,700.
11. Prepare a post-closing
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