Reference no: EM13793225
ADJUSTING-CLOSING ENTRY STUDY PROBLEM
TYPES OF ADJUSTING ENTRIES:
1. Prepaid expense
2. Unearned income
3. Accrued revenue
4. Accrued expense
5. Preceding entry
6. Succeeding entry
JHJ CAR RENTAL COMPANYY HAD THE FOLLOWING TRANSACTIONS:
1. Formed corporation with $50,000 issuing common stock
2. Purchased 4 cars for $100,000 paying $20,000 down and received note for the balance
3. Received cash rental income of $ 60,000
4. Rented cars to corporate customers on account for $10,000
5. Dwight Howard paid $5,000 in advance to rent the cars for opening night
6. Purchased supplies for $3,000 paying cash
7. Collected $8,000 from corporate customers
8. Supplies on hand at end of year was $1,000
9. Accrued salaries at end of year totaled 15,000
10. Accrued interest on note at end of year was $2,000
11. Rented cars to Howard on opening night
12. Depreciated cars utilizing straight line method over 5 year life
13. Paid dividends of $5,000
SET UP FOLLOWING T-ACCOUNTS
1. Cash
2. Accounts Receivable
3. Supplies
4. Auto
5. Accumulated Depreciation
6. Note Payable
7. Wages Payable
8. Interest Payable
9. Unearned Income
10. Common Stock
11. Retained Earnings
12. Dividends
13. Car Rental Revenue
14. Salary Expense
15. Supplies Expense
16. Interest Expense
17. Depreciation Expense
REQUIRED:
1. Journalize each entry and identify the type pf adjusting entry if appropriate
2. Post to ledger
3. Prepare trial balance
4. Prepare income statement
5. Prepare statement of retained earnings
6. Prepare balance sheet
7. Prepare closing entries
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: ADJUSTING-CLOSING ENTRY STUDY PROBLEM. JHJ CAR RENTAL COMPANYY HAD THE FOLLOWING TRANSACTIONS: SET UP FOLLOWING T-ACCOUNTS
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