12:53 Project ACTG 201 School) and have decided to use the following chart of accounts for Sir Rent-A-Lot Inc. Sir Rent-A-Lot closes its accounts and prepares financial statements at the end of each month. During Sept (their first month of operations) they had the following transactions TE Son Year 2 000s of commocked in change for 15.000 cal Spl. Yew 2 Pedofthew MR ALL THIS The V by the ways been del e d public for py 120 m 2 . Yer the the works of Sept they c d 15.000 ore 15.000 ch o se 12:547 Project ACTG 201 Se d de which they by the end of the year Swim Tham Landscapes in the child they Ved the S ham Adjusting Entries S V Rol e is being deprecated on 15 year. The Cam Sape Verd Sep Youth D D 5.000 See YewBy the dow n loaded the hache.daya 5350 Sep Yew Naled by prese nte Sep Yew Camc o rded with the w Cand leave them the way cale federale The Instructions 1-Journalize in good form) the above transactions 2- Post to ledger accounts. 3- Prepare adjusting and closing entries and post to ledger accounts 4. Prepare an income statement and a statement of retained camnings for the month of Sept, and a balance sheet as of Sepe utfiles from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Requirentures for Project 1. The assignment must be done Beatly on computer printouts. (Excel is infinitely easier) 2. Financial statements most be complete, properly beaded, and in proper format. 3. Answer all questions Project (30 points) Sir Rents-A-Lot Equipment Rental Inc. On Aurust 31, Year 2, Arthur Camelot and his wife Guinevere formed a corporation in Pennsylvania The purpose of this business was to rent tools and construction equipment to homeowners and Contractors. They purchased the assets of an gisting-but failing business QUR ALL THUMBS Inc) and began operations inmediately They have a little accounting experience from the halcyon days of their youth when they were both students at the Fort School) and have decided to use the following chart of accounts for Sir Rent-A-Lot Inc. ACCOUNGmde e ACCOUNT Recente Prepaid Rent epaigasurance Owce Supplies Rental Equipat ACDeprec EE Nors Pavable s ACCO Povable Persyal OORDE Sante UDFODER Account Name common stoc retained and tes Dividende onde Summary Fees Bred Service es Espese a e spese c Espense seat Esper Tesus Deco to search w Enable Editing Sir Rent-A-Lot closes its ac ts and prepares financial statements at the end of each month. During Sept (their first month of operations) they had the following transactions Date Sept 1, Year 2 Sept 1, Year 2 Sept 1, Year 2 Sept 4, Year 2 Sept 5. Year 2 Sept 1 Year 2 Sept 12. Year 2 Sept 15 Year 2 Sept 17. Year 2 Transaction or Event 25,000 shares of common stock issued in exchange for $125,000 ch Purchased all of the equipment owned by "MR ALL THUMBS. The equipment that was bought had a fair market value of $300,000, but the price that the equipment was purchased for was $270,000. They signed a three-year 9% aote payable and paid $110,000 cash Paid rent to Liacouras Realty Company for 3 months of $12,000. They are occupying the same space as "MR ALL THUMBS." Purchased from - Office Max-office supplies worth $1,750 on account. Payment terms are 2/10 met 30. They expect that these supplies will last for several months Hired a new secretary/assistant, his annual salary is 332,000 per year plus a benefit package that is annually worth $7,000. Received an advance payment from Dipper O Del Ca. 511,000 cach Use a liability account Paid the salaries for the first two weeks of Sept. $5,250. Excluding the advance from Digger O Dell Company, 510,000 was eamed. The amount of cash received was $6,000. The remaining $4000 is recorded as Account Receivable. Purchased repair parts from Caterpillar Inc. that are worth $500 Terms are net 10 of the accounts receivable recorded on Sept 15th, 54,000 was collected Rented a front-end loader to Landscrapers, Inc at a $250 per day rate. Landscrapers, Inc. will settle their account when they return the leader. They expect to keep it about two or three Weeks Paid the salaries for the two weeks ended Sept. 26.55 30 Paid Caterpillar is the follout $300 A dividend was declared, which they intend to pay at 50.10 per share by the end of the year A child was slightly sured when he fell off of the front-end loader that was rented to Landicrapers Inc. The child is the only son of a Lawyer and an orthopedic surgeon. They have filled a lawsuit at 5250,000 against oth Landscapers and Sir-Rent-A-Lot The actual liability for the accident has not yet been determined Parc a r public ability wrance policy for $5,000 The police contes effects at 12:01 m. October Yer: 2 Received the Sept utility bill that amounted to 375. It is due to later thas October 15th Fort Laste Of FLEECTEDROSO ONDE SE C00 Sept 23, Year 2 Sept 23, Year 2 Sept 26, Year 2 Se Ye Sept 20, Year 2 Sept 29, Year 2 Sept 20. Yes 2 Sept Yeu Focus D Mailings Review View H elp Jou need to edit, it's safer to stay in Protected View. Enable Editing the amount of cash received amounted to 56,250. Adjusting Entries Date Sept 30, Year 2 Sept 30, Year 2 Transaction or Event The rent paid to Liacouras Agency was for 3 months. Interest accrued on the note payable was $1,000 at the end of the month. Rental equipment is being depreciated over 15 years. The Camelots have chosen to use the straight-line method of depreciation At the end of the month supplies worth $1,250 were on hand. Sept 30, Year 2 Sept 30, Year 2 Sept 30, Year 2 Sept 30, Year 2 Sept 30, Year 2 During the month, Digger O Dell had used 56,000 of rental equipment. By the end of the month, Landscrapers Inc. had not returned the backhoe. (5 days $250) Salaries earned by employees amounted to $1,500 since the last payroll date (Sept 26th). The Camelots have consulted with their independent accountant, Woody Cheatum (a senior partner at the firm of Dewey, Chearum and Howe P.C.) and be advised them that they are likely subject to a combined local, state, & federal tax rate of 40% The taxes will be paid by December 15. Sept 30, Year 2 Lastructions 1-loanalize (in good forms) the above transactions 2. Post to ledger accounts 3. Prepare adjusting and closisgerbes and post to ledger accounts 4. Prepare an income statement and a statement of retained a balance sheet of Sat 30 ngs for the month of Sept and a 12:53 Project ACTG 201 School) and have decided to use the following chart of accounts for Sir Rent-A-Lot Inc. Sir Rent-A-Lot closes its accounts and prepares financial statements at the end of each month. During Sept (their first month of operations) they had the following transactions TE Son Year 2 000s of commocked in change for 15.000 cal Spl. Yew 2 Pedofthew MR ALL THIS The V by the ways been del e d public for py 120 m 2 . Yer the the works of Sept they c d 15.000 ore 15.000 ch o se 12:547 Project ACTG 201 Se d de which they by the end of the year Swim Tham Landscapes in the child they Ved the S ham Adjusting Entries S V Rol e is being deprecated on 15 year. The Cam Sape Verd Sep Youth D D 5.000 See YewBy the dow n loaded the hache.daya 5350 Sep Yew Naled by prese nte Sep Yew Camc o rded with the w Cand leave them the way cale federale The Instructions 1-Journalize in good form) the above transactions 2- Post to ledger accounts. 3- Prepare adjusting and closing entries and post to ledger accounts 4. Prepare an income statement and a statement of retained camnings for the month of Sept, and a balance sheet as of Sepe utfiles from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Requirentures for Project 1. The assignment must be done Beatly on computer printouts. (Excel is infinitely easier) 2. Financial statements most be complete, properly beaded, and in proper format. 3. Answer all questions Project (30 points) Sir Rents-A-Lot Equipment Rental Inc. On Aurust 31, Year 2, Arthur Camelot and his wife Guinevere formed a corporation in Pennsylvania The purpose of this business was to rent tools and construction equipment to homeowners and Contractors. They purchased the assets of an gisting-but failing business QUR ALL THUMBS Inc) and began operations inmediately They have a little accounting experience from the halcyon days of their youth when they were both students at the Fort School) and have decided to use the following chart of accounts for Sir Rent-A-Lot Inc. ACCOUNGmde e ACCOUNT Recente Prepaid Rent epaigasurance Owce Supplies Rental Equipat ACDeprec EE Nors Pavable s ACCO Povable Persyal OORDE Sante UDFODER Account Name common stoc retained and tes Dividende onde Summary Fees Bred Service es Espese a e spese c Espense seat Esper Tesus Deco to search w Enable Editing Sir Rent-A-Lot closes its ac ts and prepares financial statements at the end of each month. During Sept (their first month of operations) they had the following transactions Date Sept 1, Year 2 Sept 1, Year 2 Sept 1, Year 2 Sept 4, Year 2 Sept 5. Year 2 Sept 1 Year 2 Sept 12. Year 2 Sept 15 Year 2 Sept 17. Year 2 Transaction or Event 25,000 shares of common stock issued in exchange for $125,000 ch Purchased all of the equipment owned by "MR ALL THUMBS. The equipment that was bought had a fair market value of $300,000, but the price that the equipment was purchased for was $270,000. They signed a three-year 9% aote payable and paid $110,000 cash Paid rent to Liacouras Realty Company for 3 months of $12,000. They are occupying the same space as "MR ALL THUMBS." Purchased from - Office Max-office supplies worth $1,750 on account. Payment terms are 2/10 met 30. They expect that these supplies will last for several months Hired a new secretary/assistant, his annual salary is 332,000 per year plus a benefit package that is annually worth $7,000. Received an advance payment from Dipper O Del Ca. 511,000 cach Use a liability account Paid the salaries for the first two weeks of Sept. $5,250. Excluding the advance from Digger O Dell Company, 510,000 was eamed. The amount of cash received was $6,000. The remaining $4000 is recorded as Account Receivable. Purchased repair parts from Caterpillar Inc. that are worth $500 Terms are net 10 of the accounts receivable recorded on Sept 15th, 54,000 was collected Rented a front-end loader to Landscrapers, Inc at a $250 per day rate. Landscrapers, Inc. will settle their account when they return the leader. They expect to keep it about two or three Weeks Paid the salaries for the two weeks ended Sept. 26.55 30 Paid Caterpillar is the follout $300 A dividend was declared, which they intend to pay at 50.10 per share by the end of the year A child was slightly sured when he fell off of the front-end loader that was rented to Landicrapers Inc. The child is the only son of a Lawyer and an orthopedic surgeon. They have filled a lawsuit at 5250,000 against oth Landscapers and Sir-Rent-A-Lot The actual liability for the accident has not yet been determined Parc a r public ability wrance policy for $5,000 The police contes effects at 12:01 m. October Yer: 2 Received the Sept utility bill that amounted to 375. It is due to later thas October 15th Fort Laste Of FLEECTEDROSO ONDE SE C00 Sept 23, Year 2 Sept 23, Year 2 Sept 26, Year 2 Se Ye Sept 20, Year 2 Sept 29, Year 2 Sept 20. Yes 2 Sept Yeu Focus D Mailings Review View H elp Jou need to edit, it's safer to stay in Protected View. Enable Editing the amount of cash received amounted to 56,250. Adjusting Entries Date Sept 30, Year 2 Sept 30, Year 2 Transaction or Event The rent paid to Liacouras Agency was for 3 months. Interest accrued on the note payable was $1,000 at the end of the month. Rental equipment is being depreciated over 15 years. The Camelots have chosen to use the straight-line method of depreciation At the end of the month supplies worth $1,250 were on hand. Sept 30, Year 2 Sept 30, Year 2 Sept 30, Year 2 Sept 30, Year 2 Sept 30, Year 2 During the month, Digger O Dell had used 56,000 of rental equipment. By the end of the month, Landscrapers Inc. had not returned the backhoe. (5 days $250) Salaries earned by employees amounted to $1,500 since the last payroll date (Sept 26th). The Camelots have consulted with their independent accountant, Woody Cheatum (a senior partner at the firm of Dewey, Chearum and Howe P.C.) and be advised them that they are likely subject to a combined local, state, & federal tax rate of 40% The taxes will be paid by December 15. Sept 30, Year 2 Lastructions 1-loanalize (in good forms) the above transactions 2. Post to ledger accounts 3. Prepare adjusting and closisgerbes and post to ledger accounts 4. Prepare an income statement and a statement of retained a balance sheet of Sat 30 ngs for the month of Sept and a