COMPREHENSIVE PROBLEM Susquehanna Equipment Rentals A COMPREHENSIVE ACCOUNTING CYCLE PR On December 1, Year 1, John and Patty Driver formed a corporation Equipment Rentals. The new corporation was able to begin operations chasing the assets and taking over the location of Rent-It, an equipmens was going out of business. The newly formed company uses the following accounits. OBLEM that Cash Income Taxes Payable Capital Stock Retalined Earnings Dividends Income Summary Rental Fees Earned Salaries Expense Maintenance Expense Utilities Expense Rent Expense Accounts Receivable Prepaid Rent Unexpired Insurance Office Supplies Rental Equipment Accumulated Depreciation: Rental Equipment Notes Payable Accounts Payable Office Supplies Expense Depreciation Expense Interest Expense Interest Payable Salaries Payable Dividends Payable Unearned Rental Fees Income Taxes Expense on December 31. During December, the corporation entered into the following transactions Dec. 1 Issued to John and Patty Driver 20,000 shares of capital stock in exchange for Dec. 1 Purchased for $288,000 all of the equipment formerly owned by Rent-It. Pais The corporation performs adjusting entries monthly. Closing entries are performed annually total of $240,000 cash. $168,000 cash and issued a 1-year note payable for $120,000. The note, plu Paid $14,400 to Shapiro Realty as three months' advance rent on the renta Purchased office supplies on account from Modern Office Co., $1,200.1 on cquipment rental from M 12 months of accrued interest, are due November 30, Year 2 Dec. 1 and office formerly occupied by Rent-It. Dec. 4 due in 30 days. (These supplies are expected to last for several months Office Supplies asset account.) COMPREHENSIVE PROBLEM Susquehanna Equipment Rentals A COMPREHENSIVE ACCOUNTING CYCLE PR On December 1, Year 1, John and Patty Driver formed a corporation Equipment Rentals. The new corporation was able to begin operations chasing the assets and taking over the location of Rent-It, an equipmens was going out of business. The newly formed company uses the following accounits. OBLEM that Cash Income Taxes Payable Capital Stock Retalined Earnings Dividends Income Summary Rental Fees Earned Salaries Expense Maintenance Expense Utilities Expense Rent Expense Accounts Receivable Prepaid Rent Unexpired Insurance Office Supplies Rental Equipment Accumulated Depreciation: Rental Equipment Notes Payable Accounts Payable Office Supplies Expense Depreciation Expense Interest Expense Interest Payable Salaries Payable Dividends Payable Unearned Rental Fees Income Taxes Expense on December 31. During December, the corporation entered into the following transactions Dec. 1 Issued to John and Patty Driver 20,000 shares of capital stock in exchange for Dec. 1 Purchased for $288,000 all of the equipment formerly owned by Rent-It. Pais The corporation performs adjusting entries monthly. Closing entries are performed annually total of $240,000 cash. $168,000 cash and issued a 1-year note payable for $120,000. The note, plu Paid $14,400 to Shapiro Realty as three months' advance rent on the renta Purchased office supplies on account from Modern Office Co., $1,200.1 on cquipment rental from M 12 months of accrued interest, are due November 30, Year 2 Dec. 1 and office formerly occupied by Rent-It. Dec. 4 due in 30 days. (These supplies are expected to last for several months Office Supplies asset account.)
