ADJUSTING-CLOSING ENTRY STUDY PROBLEM TYPES OF ADJUSTING ENTRIES: 1. Prepaid expense 2. Unearned income 3. Accrued revenue 4. Accrued expense 5. Preceding entry 6. Succeeding entry JHJ CAR RENTAL COMPANYY HAD THE FOLLOWING TRANSACTIONS: 1. Formed corporation with $50,000 issuing common stock 2. Purchased 4 cars for $100,000 paying $20,000 down and received note for the balance 3. Received cash rental income of $ 60,000 4. Rented cars to corporate customers on account for $10,000 5. Dwight Howard paid $5,000 in advance to rent the cars for opening night 6. Purchased supplies for $3,000 paying cash 7. Collected $8,000 from corporate customers 8. Supplies on hand at end of year was $1,000 9. Accrued salaries at end of year totaled 15,000 10. Accrued interest on note at end of year was $2,000 11. Rented cars to Howard on opening night 12. Depreciated cars utilizing straight line method over 5 year life 13. Paid dividends of $5,000 SET UP FOLLOWING T-ACCOUNTS 1. Cash 2. Accounts Receivable 3. Supplies 4. Auto 5. Accumulated Depreciation 6. Note Payable 7. Wages Payable 8. Interest Payable 9. Unearned Income 10. Common Stock 11. Retained Earnings 12. Dividends 13. Car Rental Revenue 14. Salary Expense 15. Supplies Expense 16. Interest Expense 17. Depreciation Expense REQUIRED: 1. Journalize each entry and identify the type pf adjusting entry if appropriate 2. Post to ledger 3. Prepare trial balance 4. Prepare income statement 5. Prepare statement of retained earnings 6. Prepare balance sheet 7. Prepare closing entries