Hawaii Drive-O, Inc. rents jeep off-road vehicles to adventurous travelers on the big island of Hawaii. Selected ledger accounts for the company are listed below along with identifying numbers. Following this list of account numbers and titles is a series of transactions. For each transaction, indicate the proper accounts to be debited and credited by entering the number(s) for the account(s) and the related amounts in the space provided. If you feel the transaction should not be entered into the accounting system, write N/A. Note: You may use each account only once, more than once, or not at all. # Account # Account # Account 10 Cash 20 Accounts payable 32 Dividends 11 Accounts receivable 21 Wages payable 40 Rental revenue 12 Supplies 22 Unearned revenue 50 Advertising expense 13 Prepaid insurance 23 Notes payable 51 Rent expense 14 Vehicles 30 Common stock 52 Insurance expense 15 Equipment 31 Retained earnings 53 Wages expense Date May May 1 Issued 10,000 shares of common stock to investors in exchange for $150,000 in cash and Jeep Wrangler off-road vehicles worth $160,000. 2 Purchased a one-year insurance policy for $12,000. 3 Borrowed $100,000 from a bank, signing a 7% note due in 7 years. 5 Paid $2,000 to rent space in a beach hotel lobby for the month of May. 7 Purchased equipment for $15,000; paying $5,000 in cash and signing a note for the balance. 9 Purchased $500 of supplies, on account. 10 Received $800 cash from a customer to reserve a Jeep rental for June. 15 Rented Jeeps to tourists: $950 was collected in cash and $1,200 on account. 23 Signed a contract to purchase 2 more Jeeps in June for $73,400. 31 Paid $10,000 in wages to employees for the month of May.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Hawaii Drive-O, Inc. rents jeep off-road vehicles to adventurous travelers on the big island of Hawaii. Selected ledger accounts for the company are listed below along with identifying numbers. Following this list of account numbers and titles is a series of transactions. For each transaction, indicate the proper accounts to be debited and credited by entering the number(s) for the account(s) and the related amounts in the space provided. If you feel the transaction should not be entered into the accounting system, write N/A. Note: You may use each account only once, more than once, or not at all.

#	Account	#	Account	#	Account
10	Cash	20	Accounts payable	32	Dividends
11	Accounts receivable	21	Wages payable	40	Rental revenue
12	Supplies	22	Unearned revenue	50	Advertising expense
13	Prepaid insurance	23	Notes payable	51	Rent expense
14	Vehicles	30	Common stock	52	Insurance expense
15	Equipment	31	Retained earnings	53	Wages expense

Date		May
May 1	Issued 10,000 shares of common stock to investors in exchange for $150,000 in cash and Jeep Wrangler off-road vehicles worth $160,000.
2	Purchased a one-year insurance policy for $12,000.
3	Borrowed $100,000 from a bank, signing a 7% note due in 7 years.
5	Paid $2,000 to rent space in a beach hotel lobby for the month of May.
7	Purchased equipment for $15,000; paying $5,000 in cash and signing a note for the balance.
9	Purchased $500 of supplies, on account.
10	Received $800 cash from a customer to reserve a Jeep rental for June.
15	Rented Jeeps to tourists: $950 was collected in cash and $1,200 on account.
23	Signed a contract to purchase 2 more Jeeps in June for $73,400.
31	Paid $10,000 in wages to employees for the month of May.