Dec. Received $9,89e cash as advance payment on equipment rental from MeNamer Construction Company. (Credit Unearned Ren

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Dec Received 9 89e Cash As Advance Payment On Equipment Rental From Menamer Construction Company Credit Unearned Ren 1 (58.26 KiB) Viewed 15 times

Dec Received 9 89e Cash As Advance Payment On Equipment Rental From Menamer Construction Company Credit Unearned Ren 2 (41.28 KiB) Viewed 15 times

Dec Received 9 89e Cash As Advance Payment On Equipment Rental From Menamer Construction Company Credit Unearned Ren 3 (38.84 KiB) Viewed 15 times

Dec Received 9 89e Cash As Advance Payment On Equipment Rental From Menamer Construction Company Credit Unearned Ren 4 (24.51 KiB) Viewed 15 times

Dec Received 9 89e Cash As Advance Payment On Equipment Rental From Menamer Construction Company Credit Unearned Ren 5 (59.54 KiB) Viewed 15 times

Dec. Received $9,89e cash as advance payment on equipment rental from MeNamer Construction Company. (Credit Unearned Rental Fees) Dec. 12 Paid salaries of $4,9ee for the first two weeks in December Dec, 15 Excluding the MeNaner advance, equipment rental fees earned during the first 15 days of December amounted to $18,800of which $12,00 was received in cash Dec. 17 purchased on account from Earth Movers, Inc. $1,oue in parts needed to perform basic maintenance on a rental tractor. Payment is due in 10 days Dec. 23 collected $2,800 of the accounts receivable recorded on December 15. Dec 26 rented a backhoe to Mission Landscaping at a price of $130 per day to be paid when the backhoe is returned. Mission Landscaping expects to keep the backhoe for about two or three weeks. Dec. 26 Paid biweekly salaries $4.9ee Dec, 27 paid the account payable to Earth Movers Inc. $1,000 Dec 28 Declared a dividend of 18 cents per share payable on January 15 Year 2 Dec 29 Susquehanna Equipment Rentals was named, along with Mission Landscaping and collier Construction, as co- defandant in a $21, vee lawsuit filed on behalf of Ravin Davenport. Mision Landscaping had left the cented backhoe in a fenced construction site owned by Collier Construction. After working hours on Decamber 26 Davenport had climbed the fence to play on parked construction equipment, while playing on the backhoe be fell and broke his arm the extent of the company's Leal and financial responsibility for this accidents if any. cannot be determined at this time (Noter this wvent does not require a journal entry at this time, but may require disclosure in notes accompanying the staterents Dec 29 Purchased a 12-month: public liability insurance policy for this policy protects the company inst liability for interies and property damage caused by taipment. However the policy goes into affect on January 1 Year and affords no coverage for the interesuained by Kevin Davenport on December 26 Dec 31 Received a B111 from Universal utilities for the month of December 3680 Payment is in 30 days Dec 31 quipment antal fees learned during the second half of Decembenounced to 311,909, of which $15yo wa received cash
Data for Adjusting Entries In Year 1 6. The advance payment of rent on December 1 covered a period of three months. b. The annual interest rate on the note payable to Rent-lt is 6 percent c. The rental equipment is being depreciated by the straight-line method over a period of eight years Any sa vage value at the end of its useful life is expected to be negligible and immaterial d. Office supplies on hand at December 31 are estimated at $610. e. During December, the company earned $3.900 of the rental fees paid in advance by McNamer Construction Company on December 8 f. As of December 31. six days' rent on the backhoe rented to Mission Landscaping on December 26 has been earned g. Salaries earned by employees since the last payroll cate (December 26) amounted to $1500 at month-end h. It is estimated that the company is subject to a combined federal and state income tax rate of 30 percent of income before income taxes (toral revenue minus all expenses other than income taxes). These taxes will be payable in Year 2
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Capital Stock Retained Earnings Dividends Income Sunmary Rental Fees Earned Salaries Expense Cash Accounts Receivable Prepaid Rent Unexpired Insurance Office Supplies Rental Equipment Accumulated Depreciation Rental Equipment Notes Payable Accounts Payable Interest Payable Salaries Payable Dividends Payable Unaarned Rental Fees Income Taxes Payable Maintenance Expense Utilities Expense Rent Expense Office Supplies Expense Depreciation Expense Interest Expense Income taxes Expense The corporation performs adjusting entries monthly, Closing entries are performed annually on December 31. During December of its first year of operations, the corporation entered into the following transactions Dec. 1 Issued to John and Patty Driver 21,000 shares of capital stock in exchange for a total of 5210,000 cast Dec 1 Purchased for $249,699 all of the equipment formerly owned by entit. Pald 3155,00 cash and issued a 1-year note payable for $114,680. The note, plus 11 12 months of accrued interese, are due November 30, Voar 2. Dec. 1 paid $11,708 to Shapiro Realty as three months' advance nent on the rental yard and office formerly occupied by Rent-It Dec. 4 Purchased office supplies on account from Modern Office co $1,600, Payment que in se days. These supplies are expectad to last for several wonths; debit the Office Supplies asset account.) Dec. 8 Received 59,00 cash as advance payment on equipment rental from McNamer Construction Company. (Credit Unearned Rental Fees