Reference no: EM131241780

JOURNAL ENTRY

STUDY PROBLEM 1-12

FINANCIAL TRANSACTIONS

1. Invested $200,000 to start JHJ rental car company
2. Paid cash of $10,000 for supplies
3. Paid cash of $24,000 for two year insurance policy
4. Purchased equipment on account in the amount of $10,000
5. Purchased $15,000 in supplies on account
6. Paid advertising expense of $10,000
7. Purchased ten autos for $30,000 each paying $50,000 down and signed a note for the balance
8. Received cash car rental revenue $400,000
9. Paid office salaries of $80,000
10. Paid rent expense of $40,000
11. Car rental revenue earned from corporate customers on account $100,000
12. Paid on accounts payable $20,000
13. Collection of cash from corporate customers $100,000
14. Invested an additional $100,000 in the business
15. Received cash car rental revenue $500,000
16. Paid sales salaries of $300,000
17. Car rental revenue earned from corporate customers $50.000
18. Collection of cash from corporate customers
19. Paid rent expense of $40,000
20. Paid delivery expenses of $4,000
21. Paid dividends of $5,000
22. Purchased supplies on account $20,000
23. Purchased supplies paying cash of $5,000
24. Paid principal on note payable $40,000
25. Paid interest expense on note payable $4,000
26. Cash car rental revenue received $75,000
27. Car rental revenue billed to corporate customers $125,000
28. Collections from corporate customers $125,000
29. Paid advertising expense $12,000
30. Paid miscellaneous office expenses $2,000
31. Invested additional $50,000 in the business
32. Paid dividends of $10,000
33. Purchased land for $200,000 paying $50,000 down and signed a note for balance
34. Paid principal on note payable $50,000
35. Paid interest on note payable $5,000
36. Received cash care rental income of $150,000
37. Billed corporate customers for car rental $250,000
38. Collected car rental income from corporate customers $100,000
39. Paid dividends $20,000
40. Purchased supplies on account $15,000
41. Ending supplies inventory $20,000
42. Bad debt expense 1% of credit sales
43. Dwight Howard paid $20,000 in advance to rent cars for friends for the NBA All Star Game
44. Depreciation expense on equipment is calculated utilizing straight-line method and five year life
45. Depreciation expense on autos is calculated utilizing the double declining balance method and a five year life
46. Record expiration of one year's insurance premiums
47. Accrued salaries at end of year totaled $12,000
48. Dwight Howard was provided cars for all-star game

REQUIRED:

1. PREPARE JOURNAL ENTRIES AND POST ALL ENTRIES TO LEDGER

CHART OF ACCOUNTS

BALANCE SHEET ACCOUNTSINCOME STATEMENT ACCOUNTS

100 ASSETS	400 REVENUES
110 Cash	410 Sales
112 Accounts Receivable	411 Sales Returns and Allowances
113 Allowance for Doubtful Accounts	412 Sales Discounts
114 Inventory	500 COST AND EXPENSES
116 Supplies	510 Cost of Merchandise Sold
117 Prepaid Insurance	520 Sales Salaries Expense
120 Land	521 Advertising Expense
123 Auto	522 Depreciation Expense on equipment
124 Accumulated Depreciation on auto	523 Delivery expense
125 Equipment	524 Bad Debt Expense
126 Accumulated depreciation on equipment	529 Miscellaneous selling expense
200 LIABILITIES	530 Office salaries expense
210 Accounts Payable	531 Rent Expense
211 Salaries Payable	532 Depreciation Expense on auto
212 Unearned income	533 Insurance expense
215 Notes Payable	534 Office supplies expense
300 STOCKHOLDR'S EQUITY	539 Misc. Administrative Expense
310 Capital Stock	600 Other Income
311 Retained Earnings	610 Rent Revenue
312 Dividends	700 Other Expense
313 Income Summary	710 Interest Expense

Attachment:- Financial_Accounting_Spreadsheet.xlsx