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