Question

Required information [The following information applies to the questions displayed below.] The general ledger of Jackrabbit Rentals at January 1, 2021, includes the following account balances: Credits Debits $ 44,500 28,700 113,800 Accounts Cash Accounts Receivable Land Accounts Payable Notes Payable (due in 2 years) Common Stock Retained Earnings Totals 15,600 33,000 103,000 35, 400 $187,000 $187,000 The following is a summary of the transactions for the year: 1. January 12 Provide services to customers on account, $65,400. 2. February 25 Provide services to customers for cash, $76,800. 3. March 19 Collect on accounts receivable, $46,000. 4. April 30 Issue shares of common stock in exchange for $33,000 cash. 5. June 16 Purchase supplies on account, $12,700. 6. July 7 Pay on accounts payable, $11,600. 7. September 30 Pay salaries for employee work in the current year, $67,200. 8. November 22 Pay advertising for the current year, $22,800. 9. December 30 Pay $3,200 cash dividends to stockholders. The following information is available for the adjusting entries. Accrued interest on the notes payable at year-end amounted to $2,800 and will be paid January 1, 2022. Accrued salaries at year-end amounted to $1,800 and will be paid on January 5, 2022. Supplies remaining on hand at the end of the year equal $2,600.

The options to select from for the first AND last are identical and look as follows. Please be sure to mark empty boxes with a dash or zero where appropriate.

Answer 1

T-accounts are as prepared below:

Cash
Date	Debit	Credit	Balance
Beg Bal	44,500		44,500
Feb-25	76,800		121,300
Mar-19	46,000		167,300
Apr-30	33,000		200,300
Jul-07		11,600	188,700
Sep-30		67,200	121,500
Nov-22		22,800	98,700
End Bal		3,200	95,500
Account Receivable
Date	Debit	Credit	Balance
Beg Bal	28,700		28,700
Jan-12	65,400		94,100
Mar-19		46,000	48,100
Supplies
Date	Debit	Credit	Balance
Jun-16	12,700		12,700
Adj c		10,100	2,600
Land
Date	Debit	Credit	Balance
Beg Bal	113,800		113,800
Accounts Payable
Date	Debit	Credit	Balance
Beg Bal		15,600	15,600
Jun-16		12,700	28,300
Jul-07	11,600		16,700
Notes Payable
Date	Debit	Credit	Balance
Beg Bal		33,000	33,000
Common Stock
Date	Debit	Credit	Balance
Beg Bal		103,000	103,000
Apr-30		33,000	136,000
Retained Earnings
Date	Debit	Credit	Balance
Beg Bal		35,400	35,400
Dec-31		34,300	69,700
Service Revenue
Date	Debit	Credit	Balance
Jan-12		65,400	65,400
Feb-25		76,800	142,200
Dec-31	142,200		0
Salaries Expense
Date	Debit	Credit	Balance
Sep-30	67,200		67,200
Adj b	1,800		69,000
Dec-31		69,000	0
Advertising Expense
Date	Debit	Credit	Balance
Nov-22	22,800		22,800
Dec-31		22,800	0
Dividends
Date	Debit	Credit	Balance
Dec-30	3,200		3,200
Dec-31		3,200	0
Interest Expense
Date	Debit	Credit	Balance
Adj a	2,800		2,800
Dec-31		2,800	0
Interest Payable
Date	Debit	Credit	Balance
Adj a		2,800	2,800
Salaries payable
Date	Debit	Credit	Balance
Adj b		1,800	1,800
Supplies Expense
Date	Debit	Credit	Balance
Adj c	10,100		10,100
Dec-31		10,100	0
Income Summary
Date	Debit	Credit	Balance
Dec-31		142,200	142,200
Dec-31	69,000		73,200
Dec-31	22,800		50,400
Dec-31	3,200		47,200
Dec-31	2,800		44,400
Dec-31	10,100		34,300
Dec-31	34,300		0