1、Susquehanna Equipment Rental General Journal Dec.1-31, 2009Date Account titles and explanationDec. 1 cashcapital stockowners invest cash in the business Dec. 1 rental equipmentnotes payablecashpurchase equipment. Paid part in cash; balance payable in one year Dec. 1 prepaid rentcashpurchase building
2、s and land from Sharpior RealtyDec. 4 office suppliesaccounts payablepurchase office supplies on credit from Modern Office Co. Due in 30 daysDec. 8 cashunearned rental feesreceive advance payment in cash on equipmentDec. 12 salaries expensecashpaid wages for two weeksDec. 15 cashaccounts receivabler
3、ental fees unearnedreceive rental fees for 15 days of equipmentDec. 17 maintenance expenseaccounts payablepurchase repair expense on account. Due in 10 daysDec. 23 cashaccounts receivablecollect accounts receivable recorded on Dec.15Dec.26 salaries expensecashpaid wages for two weeksDec.27 account p
4、ayable cashpaid the account payable to Earth Movers, Inc. recorded on Dec.17Dec.28 dividendsdividends payabledeclared a dividend of 10 cens per share on 20,000 shares due on Jan.15Dec.29 unexpired insurancecashpurchase a 12-month public-liability insuranceDec.31 utilities expenseaccounts payableutil
5、iy bill due in 30 daysDec.31 cashaccounts receivablerental fees earnedearn equipment rental feesnotesSusquehanna Equipment Rental work sheet for the year ended Dec. 31,2009unadjusted trail balance adjustmentsDr Cr Dr Crbalance sheet accountscash 65,000accounts receivable 8,400 (f)1,500prepaid rent 1
6、2,000 (a)4,000unexpired insurance 9,600office supplies 1,000 (d)400rental equipment 240,000accumulated depreciation: rental equipment (c)2,500notes payable 100,000accounts payable 1,700interest payable (b)500salaries payable (g)1,400dividends payable 2,000unearned rental fees 8,000 (e)3,700income ta
7、xes payable (h)9,080capital stock 200,000retained earningsdividends 2,000income statement accountsrental fees earned 38,000 (e)3,700(f)1,500salaries expense 10,400 (g)1,400maintenance expense 600utilities expense 700rent expense (a)4,000office supplies expense (d)400depreciation expense (c)2,500inte
8、rest expense (b)500income taxes expense (h)9,080income summarysubtotal 349,700 349,700 23,080 23,080net incometotal 349,700 349,700 23,080 23,080(a)advanced payment used during December (b)interest expense accrued during December on note paybale (c)monthly depreciation on equipment(240,000/8/12) (d)
9、office supplies used during Dec.(e)earned of rental fees paid in advance on Dec.8 (f)earned six days rental fees on backhoe rented on Dec.23 (g)to accrue salaries owed to employees but unpaid as of month-end (h)estimate income taxes applicable to taxable income earned in Dec.Susquehanna Equipment Re
10、ntal adjuesting general journal Dec.31,2009Date Account titles and explanation DebitDec.31 rent expense 4,000prepaid rentadvanced payment used during DecemberDec.31 interest expense 500interest payableinterest expense accrued during December on note paybaleDec.31 depreciation expense 2,500accumulate
11、d depreciation: rental equipmentmonthly depreciation on equipment(240,000/8/12)Dec.31 office supplies expense 400office suppliesoffice supplies used during Dec.Dec.31 unearned rental fees 3,700rental fees earnedearned of rental fees paid in advance on Dec.8Dec.31 accounts receivable 1,500rental fees
12、 earnedearned six days rental fees on backhoe rented on Dec.23Dec.31 salaries expense 1,400salaries payableto accrue salaries owed to employees but unpaid as of month-endDec.31 income taxes expense 9,080income taxes payableestimate income taxes applicable to taxable income earned in Dec.Susquehanna
13、Equipment Rentaladjusting ledgeraccounts receivable interest payabledebit credit debit creditbal. 8,400 12/31 50012/31 1,500 bal. 500bal. 9,900salaries payableoffice supplies debit creditdebit creidt 12/31 1,400bal. 1,000 12/31 400 bal. 1,400bal. 600income taxes payableprepaid rent debit creditdebit
14、 creidt 12/31 9,080bal. 12,000 12/31 4,000 bal. 9,080bal. 8,000unearned rental feesaccumulated depreciation:rental equipment debit creditdebit credit 12/31 3,700 bal. 8,00012/31 2,500 bal. 4,300bal. 2,500rental fees earneddebit creditbal. 38,00012/31 3,70012/31 1,500bal. 43,200salaries expensedebit
15、creditbal. 10,40012/31 1,400bal. 11,800rent expensedebit credit12/31 4,000bal. 4,000office supplies expensedebit credit12/31 600bal. 600depreciation expensedebit credit12/31 2,500bal. 2,500interest expensedebit credit12/31 500bal. 500income taxes expensedebit credit12/31 9,080bal. 9,080Susquehanna E
16、quipment Rentalclosing general journal Dec.31,2009Date account titles and explanation DebitDec.31 rental fees earned 43,200income summaryto close the rental fees earned accountDec.31 income summary 29,580salaries expensemaintenance expenseutilities expenserent expenseoffice supplies expensedepreciat
17、ion expenseinterest expenseincome taxes expenseto close the expense accountsDec.31 income summary 13,620retained earningstransferring net income earned to the retained earning accountDec.31 retained earnings 2,000dividendsto transfer dividendsto retained earning accountSusquehanna Equipment Rentalcl
18、osing ledgerrental fees earned income summary43,200 bal. 43,200 12/31 29,580 12/31 43,20013,620 bal. 13,620salaries expensebal. 11,800 11,800 rentained earnings12/31 2,000 bal. 0maintenance expense 12/31 13,620bal. 600 600 bal. 11,620utilities expensebal. 700 700rent expensebal. 4,000 4,000office su
19、pplies expensebal. 400 400depreciation expensebal. 2,500 2,500interest expensebal. 500 500income taxes expensebal. 9,080 9,080dividendsbal. 2,000 2,000Susquehanna Equipment RentalsDebit Credit journal entry ledger200,000 cash notes payable200,000 debit credit debit12/1 200,000 12/1 140,000240,000 12
20、/8 8,000 12/1 12,000100,000 12/15 12,000 12/12 5,200140,000 12/23 2,000 12/26 5,200 accounts payable12/31 15,600 12/27 600 debit12,000 12/29 9,600 12/27 60012,000 bal. 65,0001,000 accounts receivable1,000 debit credit12/15 6,000 12/23 2,000 dividends payable8,000 12/31 4,400 debit8,000 bal. 8,4005,2
21、00 office supplies5,200 debit credit capital stock12/4 1,000 debit12,000 bal. 1,0006,00018,000 prepaid rentdebit credit dividends600 12/1 12,000 debit600 bal. 12,000 12/28 2,000bal. 2,0002,000 rental equipment2,000 debit credit unearned rental fees12/1 240,000 debit5,200 bal. 240,0005,200unexpired i
22、nsurance600 debit credit rental fees earned600 12/29 9,600 debitbal. 9,6002,0002,0009,600 salaries expense9,600 debit12/12 5,200700 12/26 5,200700 bal. 10,40015,600 maintenance expense4,400 debit20,000 12/17 600bal. 600utilities expensedebit12/31 700Susquehanna Equipment Rental General Journal Dec.1
23、-31, 2009bal. 700adjusted trail balance income statement balance sheet closing post closing trail balanceDr Cr Dr Cr Dr Cr Dr Cr Dr65,000 65,000 65,0009,900 9,900 9,9008,000 8,000 8,0009,600 9,600 9,600600 600 600240,000 240,000 240,0002,500 2,500100,000 100,0001,700 1,700500 5001,400 1,4002,000 2,0
24、004,300 4,3009,080 9,080200,000 200,0002,000 13,6202,000 2,000 2,00043,200 43,200 43,20011,800 11,800 11,800600 600 600700 700 7004,000 4,000 4,000400 400 4002,500 2,500 2,500500 500 5009,080 9,080 9,08043,200 43,200364,680 364,680 29,580 43,200 335,100 321,480 43,200 43,200 333,10013,620 13,620364,
25、680 364,680 43,200 43,200 335,100 335,100 43,200 43,200 333,100Susquehanna Equipment RentalCredit income statement for the year ended Dec.31,2009revenue:4,000 rental fees earned $43,200Susquehanna Equipment Rental work sheet for the year ended Dec. 31,2009(e)3,700(f)1,500(a)advanced payment used dur
26、ing December (b)interest expense accrued during December on note paybale (c)monthly depreciation on equipment(240,000/8/12) (d)office supplies used during Dec.(e)earned of rental fees paid in advance on Dec.8 (f)earned six days rental fees on backhoe rented on Dec.23 (g)to accrue salaries owed to em
27、ployees but unpaid as of month-end (h)estimate income taxes applicable to taxable income earned in Dec.Susquehanna Equipment Rental adjuesting general journal Dec.31,2009totla revenue $43,200expense:500 salaries expense $11,800maintenance expense 600utilities expense 7002,500 rent expense 4,000offic
28、e supplies expense 400depreciation expense 2,500400 interest expense 500 20,500income before income taxes $22,700income taxes 9,0803,700 net income $13,620Susquehanna Equipment Rental1,500 statement of retained earnings for the year ended Dec.31,2009retained earnings,Dec.1,2009add: net income1,400 s
29、ubtotalless: dividendsretained earnings,Dec.31,20099,080Susquehanna Equipment Rentalbalance sheet Dec.31,2009assetscashaccounts receivableprepaid rentunexpired insuranceoffice suppliesrental equipment $240,000less: accumulated depreciation 2,500total assestsliabilities and owners equityliabilities:n
30、otes payableaccounts payableinterest payablesalaries payabledividends payableunearned rental feesincome taxes payabletotal liabilitiesownersequity:capital stockretained earningstotal ownersequitytotal liabilities and ownersequityNote 1: depreciation policiesDepraciation expense in the financial stat
31、ement is computed bythe straight-line method. Estimate useful lives are eight years.Note 2: maturity dates of liabilitiesThe companys notes payable consist of a single obligation thatmatures on Dec.1 of the coming year. The maturity value of thisnote, including interest charges, will amount to $106,
32、000.Note 3: potential liability due to pending litigationThe companys potential liability due to pending litigation is $25,000.f. no, the company wont insolvency in the future. It has $9900 accounts receivable and its whole asset is $333100.g. the accounting records should be maintained by others.Credit43,20011,8006007004,0004002,5005009,08013,6202,000Susquehanna Equipment Rentalclosing general journal Dec.31,2009Susquehanna Equipment Rentalclosing ledgerincome summary12/31 43,200bal. 13,620rentained earningsbal. 012/31 13,620bal. 11,620
