Question

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The general ledger of Jackrabbit Rentals at January 1, 2021, includes the following account balances:

Accounts	Debits				Credits
Cash	$	46,500
Accounts Receivable		30,700
Land		115,800
Accounts Payable						15,800
Notes Payable (due in 2 years)						35,000
Common Stock						105,000
Retained Earnings						37,200
Totals	$	193,000			$	193,000

The following is a summary of the transactions for the year:

1.		January		12		Provide services to customers on account, $67,400.
2.		February		25		Provide services to customers for cash, $77,800.
3.		March		19		Collect on accounts receivable, $46,200.
4.		April		30		Issue shares of common stock in exchange for $35,000 cash.
5.		June		16		Purchase supplies on account, $13,100.
6.		July		7		Pay on accounts payable, $11,800.
7.		September		30		Pay salaries for employee work in the current year, $69,200.
8.		November		22		Pay advertising for the current year, $23,000.
9.		December		30		Pay $3,400 cash dividends to stockholders.

The following information is available for the adjusting entries.

Accrued interest on the notes payable at year-end amounted to $3,000 and will be paid January 1, 2022. Accrued salaries at year-end amounted to $2,000 and will be paid on January 5, 2022. Supplies remaining on hand at the end of the year equal $2,800.

1. 3. 6. & 10. Post the transactions, adjusting entries and closing entries to the T-accounts. Be sure to include beginning balances.

Answer 1

T-Accounts:
Debit	Amount $	Credit	Amount $
Cash
OB	46500	7-Jul	11800
25-Feb	77800	30-Sep	69200
19-Mar	46200	22-Nov	23000
30-Apr	35000	30-Dec	3400
		CB	98100
Acc Receivable
OB	30700	19-Mar	46200
12-Jan	67400	CB	51900
Land
OB	115800
Acc Payable
7-Jul	11800	OB	15800
CB	17100	16-Jun	13100
Notes Payable
		OB	35000
Common Stock
CB	140000	OB	105000
		30-Apr	35000
Retained Earnings
		OB	37200
Service Revenue
CB	145200	12-Jan	67400
		25-Feb	77800
Supplies
16-Jun	13100	31-Dec	10300
		CB	2800
Salaries exp.
30-Sep	69200	CB	71200
31-Dec	2000
Advertising exp.
22-Nov	23000
Dividend
30-Dec	3400
Interest exp.
31-Dec	3000
Interest Payable
		31-Dec	3000
Salary Payable
		31-Dec	2000
Supplies exp.
31-Dec	10300