REQUIRED:

PREPARE JOURNAL ENTRIES AND POST ALL ENTRIES TO LEDGER

PREPARE TRIAL BALANCE

PREPARE INCOME STATEMENT

PREPARE STATEMENT OF RETAINED EARNINGS

PREPARE BALANCE SHEET

PREPARE CLOSING ENTRIES

JHJ RENTAL CAR COMPANY

COMPREHENSIVE 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. Bad debt expense 1% of credit sales

42. Dwight Howard paid $20,000 in advance to rent cars for friends for the NBA All Star Game

43. Depreciation expense on equipment is calculated utilizing straight-line method and five-year life

44. Depreciation expense on autos is calculated utilizing the double declining balance method and a five-year life

45. Record expiration of one year’s insurance premiums

46. Accrued salaries at end of year totaled $12,000

47. Dwight Howard was provided cars for all-star game

48. Corporate car rental revenue earned totaled $150,000

49. Collections of car rental revenue on account $125,000

50. Supplies purchased on account $15,000

51. Payment on account payable $12,000

52. Cash sales $250,000

53. Office rental expenses $75,000

54. Car rental revenue received in advance from James Hardin for opening night to transport his entourage to the game $15,000 for five limousines

55. Paid principal of $30,000 and interest of $15,000 on autos.

56. Flood expenses incurred after hurricane Harvey $80,000

57. Salary expenses $125,000

58. Purchased land costing $200,000 each and paid 20% down and signed a note for the balance

59. Corporate car rental revenue earned totaled $200,000

60. Collections of car rental revenue on account $175,000

61. Supplies purchased on account $25,000

62. Payment on account payable $22,000

63. Cash sales $150,000

64. Office advertising expenses $15,000

65. Actual car rental revenue earned after transporting James Hardin entourage for opening night to the game $12,000 as only four limousines were needed

66. Paid principal of $10,000 and interest of $5,000 on land note.

67. Scholarship contribution to Texas Southern University $20,000.

68. Salary expenses $150,000

69. Reimbursement check sent to James Hardin for non-required limousine

70. Ending supplies inventory $20,000

 

REQUIRED:

1. PREPARE JOURNAL ENTRIES AND POST ALL ENTRIES TO LEDGER

2. PREPARE TRIAL BALANCE

3. PREPARE INCOME STATEMENT

4. PREPARE STATEMENT OF RETAINED EARNINGS

5. PREPARE BALANCE SHEET

6. PREPARE CLOSING ENTRIES

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