Journalize the December transactions. Do not record adjusting entries at this point. Prepare the necessary adjusting entries for December. Prepare closing entries and post to ledger accounts. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C repare the necessary adjusting entries for December. (If no entry is required for a transaction/event, select "No jour the first account field. Do not round intermediate calculations. Round your final answers to the nearest whole dolla View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 > Record the income taxes for December. Note: Enter debits before credits. Date Dec. 31 General Journal Debit Credit Record entry Clear entry View general journal < Req 1A Req 1C > 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 24,000 new shares in exchange for a total of $240,000 cash. Dec. 1 Purchased for $249, 600 all of the equipment formerly owned by Rent-It. Paid $132,000 cash and issued a 1-year note payable for $117, 600. The note, plus all 12 months of accrued interest, are due November 30, Year 2. Dec. 1 Paid $9,900 to Shapiro Realty as three months' formerly occupied by Rent-It. advance rent on the rental yard and office Dec. 4 Purchased office supplies on account from Modern Office Co., $1,400. Payment due in 30 days. (These supplies are expected to last for several months; debit the Office Supplies asset account.) Dec. 8 Received $8,600 cash as advance payment on equipment rental from McNamer Construction Company. (Credit Unearned Rental Fees.) Dec. 12 Dec. 15 Paid salaries of $4,700 for the first two weeks in December. Excluding the McNamer advance, equipment rental fees earned during the first 15 days of December amounted to $19,000, of which $12, 100 was received in cash. Dec. 17 Purchased on account from Earth Movers, Inc., $600 in parts needed to perform basic maintenance on a rental tractor. Payment is due in 10 days. Dec. 23 Collected $2,200 of the accounts receivable recorded on December 15. Dec. 26 Rented a backhoe to Mission Landscaping at a price of $310 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, $4,700. Dec. 27 Dec. 28 Dec. 29 Paid the account payable to Earth Movers, Inc., $600. Declared a dividend of 10 cents per share, payable on January 15, Year 2. Susquehanna Equipment Rentals was named, along with Mission Landscaping and Collier Construction, as a co-defendant in a $27,000 lawsuit filed on behalf of Kevin Davenport. Mission Landscaping had left the rented backhoe in a fenced construction site owned by Collier Construction. After working hours on December 26, Davenport had climbed the fence to play on parked construction equipment. While playing on the backhoe, he fell and broke his arm. The extent of the company's legal and financial responsibility for this accident, if any, cannot be determined at this time. (Note: This event does not require a journal entry at this time, but may require disclosure in notes accompanying the statements.) Dec. 29 Purchased a 12-month public liability insurance policy for $8,400. This policy protects the company against liability for injuries and property damage caused by its equipment. However, the policy goes into effect on January 1, Year 2, and affords no coverage for the injuries sustained by Kevin Davenport on December 26. Dec. 31 Received a bill from Universal Utilities for the month of December, $690. Payment is due in 30 days. Dec. 31 Equipment rental fees earned during the second half of December amounted to $20,500, of which $16, 100 was received in cash. Data for Adjusting Entries in Year 1 a. 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-It is 6 percent. c. The rental equipment is being depreciated by the straight-line method over a period of eight years. Any salvage 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 $630. e. During December, the company earned $4,600 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 date (December 26) amounted to $2,000 at month-end. h. It is estimated that the company is subject to an income tax rate of 30 percent of profit before income taxes (total revenue minus all expenses other than income taxes). These taxes will be payable in Year 2. Journalize the December transactions. Do not record adjusting entries at this point. . Prepare the necessary adjusting entries for December.

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter16: Accounting Periods And Methods
Section: Chapter Questions
Problem 34P
icon
Related questions
Question
Journalize the December transactions. Do not record adjusting entries at this point.
Prepare the necessary adjusting entries for December.
Prepare closing entries and post to ledger accounts.
Complete this question by entering your answers in the tabs below.
Req 1A
Req 1B
Req 1C
repare the necessary adjusting entries for December. (If no entry is required for a transaction/event, select "No jour
the first account field. Do not round intermediate calculations. Round your final answers to the nearest whole dolla
View transaction list
Journal entry worksheet
1 2 3
4
5
6
7
8
>
Record the income taxes for December.
Note: Enter debits before credits.
Date
Dec. 31
General Journal
Debit
Credit
Record entry
Clear entry
View general journal
< Req 1A
Req 1C >
Transcribed Image Text:Journalize the December transactions. Do not record adjusting entries at this point. Prepare the necessary adjusting entries for December. Prepare closing entries and post to ledger accounts. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C repare the necessary adjusting entries for December. (If no entry is required for a transaction/event, select "No jour the first account field. Do not round intermediate calculations. Round your final answers to the nearest whole dolla View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 > Record the income taxes for December. Note: Enter debits before credits. Date Dec. 31 General Journal Debit Credit Record entry Clear entry View general journal < Req 1A Req 1C >
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 24,000 new shares in exchange for a total of $240,000
cash.
Dec. 1 Purchased for $249, 600 all of the equipment formerly owned by Rent-It. Paid $132,000 cash
and issued a 1-year note payable for $117, 600. The note, plus all 12 months of accrued
interest, are due November 30, Year 2.
Dec. 1
Paid $9,900 to Shapiro Realty as three months'
formerly occupied by Rent-It.
advance rent on the rental yard and office
Dec. 4 Purchased office supplies on account from Modern Office Co., $1,400. Payment due in 30
days. (These supplies are expected to last for several months; debit the Office Supplies
asset account.)
Dec. 8 Received $8,600 cash as advance payment on equipment rental from McNamer Construction
Company. (Credit Unearned Rental Fees.)
Dec. 12
Dec. 15
Paid salaries of $4,700 for the first two weeks in December.
Excluding the McNamer advance, equipment rental fees earned during the first 15 days of
December amounted to $19,000, of which $12, 100 was received in cash.
Dec. 17 Purchased on account from Earth Movers, Inc., $600 in parts needed to perform basic
maintenance on a rental tractor. Payment is due in 10 days.
Dec. 23 Collected $2,200 of the accounts receivable recorded on December 15.
Dec. 26
Rented a backhoe to Mission Landscaping at a price of $310 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, $4,700.
Dec. 27
Dec. 28
Dec. 29
Paid the account payable to Earth Movers, Inc., $600.
Declared a dividend of 10 cents per share, payable on January 15, Year 2.
Susquehanna Equipment Rentals was named, along with Mission Landscaping and Collier
Construction, as a co-defendant in a $27,000 lawsuit filed on behalf of Kevin Davenport.
Mission Landscaping had left the rented backhoe in a fenced construction site owned by
Collier Construction. After working hours on December 26, Davenport had climbed the fence
to play on parked construction equipment. While playing on the backhoe, he fell and broke
his arm. The extent of the company's legal and financial responsibility for this
accident, if any, cannot be determined at this time. (Note: This event does not require a
journal entry at this time, but may require disclosure in notes accompanying the
statements.)
Dec. 29 Purchased a 12-month public liability insurance policy for $8,400. This policy protects
the company against liability for injuries and property damage caused by its equipment.
However, the policy goes into effect on January 1, Year 2, and affords no coverage for the
injuries sustained by Kevin Davenport on December 26.
Dec. 31 Received a bill from Universal Utilities for the month of December, $690. Payment is due
in 30 days.
Dec. 31 Equipment rental fees earned during the second half of December amounted to $20,500, of
which $16, 100 was received in cash.
Data for Adjusting Entries in Year 1
a. 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-It is 6 percent.
c. The rental equipment is being depreciated by the straight-line method over a period of eight
years. Any salvage 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 $630.
e. During December, the company earned $4,600 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 date (December 26) amounted to $2,000 at
month-end.
h. It is estimated that the company is subject to an income tax rate of 30 percent of profit before
income taxes (total revenue minus all expenses other than income taxes). These taxes will be
payable in Year 2.
Journalize the December transactions. Do not record adjusting entries at this point.
. Prepare the necessary adjusting entries for December.
Transcribed Image Text: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 24,000 new shares in exchange for a total of $240,000 cash. Dec. 1 Purchased for $249, 600 all of the equipment formerly owned by Rent-It. Paid $132,000 cash and issued a 1-year note payable for $117, 600. The note, plus all 12 months of accrued interest, are due November 30, Year 2. Dec. 1 Paid $9,900 to Shapiro Realty as three months' formerly occupied by Rent-It. advance rent on the rental yard and office Dec. 4 Purchased office supplies on account from Modern Office Co., $1,400. Payment due in 30 days. (These supplies are expected to last for several months; debit the Office Supplies asset account.) Dec. 8 Received $8,600 cash as advance payment on equipment rental from McNamer Construction Company. (Credit Unearned Rental Fees.) Dec. 12 Dec. 15 Paid salaries of $4,700 for the first two weeks in December. Excluding the McNamer advance, equipment rental fees earned during the first 15 days of December amounted to $19,000, of which $12, 100 was received in cash. Dec. 17 Purchased on account from Earth Movers, Inc., $600 in parts needed to perform basic maintenance on a rental tractor. Payment is due in 10 days. Dec. 23 Collected $2,200 of the accounts receivable recorded on December 15. Dec. 26 Rented a backhoe to Mission Landscaping at a price of $310 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, $4,700. Dec. 27 Dec. 28 Dec. 29 Paid the account payable to Earth Movers, Inc., $600. Declared a dividend of 10 cents per share, payable on January 15, Year 2. Susquehanna Equipment Rentals was named, along with Mission Landscaping and Collier Construction, as a co-defendant in a $27,000 lawsuit filed on behalf of Kevin Davenport. Mission Landscaping had left the rented backhoe in a fenced construction site owned by Collier Construction. After working hours on December 26, Davenport had climbed the fence to play on parked construction equipment. While playing on the backhoe, he fell and broke his arm. The extent of the company's legal and financial responsibility for this accident, if any, cannot be determined at this time. (Note: This event does not require a journal entry at this time, but may require disclosure in notes accompanying the statements.) Dec. 29 Purchased a 12-month public liability insurance policy for $8,400. This policy protects the company against liability for injuries and property damage caused by its equipment. However, the policy goes into effect on January 1, Year 2, and affords no coverage for the injuries sustained by Kevin Davenport on December 26. Dec. 31 Received a bill from Universal Utilities for the month of December, $690. Payment is due in 30 days. Dec. 31 Equipment rental fees earned during the second half of December amounted to $20,500, of which $16, 100 was received in cash. Data for Adjusting Entries in Year 1 a. 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-It is 6 percent. c. The rental equipment is being depreciated by the straight-line method over a period of eight years. Any salvage 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 $630. e. During December, the company earned $4,600 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 date (December 26) amounted to $2,000 at month-end. h. It is estimated that the company is subject to an income tax rate of 30 percent of profit before income taxes (total revenue minus all expenses other than income taxes). These taxes will be payable in Year 2. Journalize the December transactions. Do not record adjusting entries at this point. . Prepare the necessary adjusting entries for December.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
SWFT Comprehensive Volume 2019
SWFT Comprehensive Volume 2019
Accounting
ISBN:
9780357233306
Author:
Maloney
Publisher:
Cengage
CONCEPTS IN FED.TAX., 2020-W/ACCESS
CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:
9780357110362
Author:
Murphy
Publisher:
CENGAGE L
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning