Hydromaint Inc yr 2 All the work on the trucks was completed by Hydromaint?s crew. They worked on the trucks and other jobs in the shop during that time. And the entire $8,000 was incurred on the retooling job. Total shop labor for the same period amounted to $14,600. that ratio was the basis of my allocation of rent and utilities. They worked 400 hours on the trucks. Shop rent and utilities expense for the one and one half months totaled $6,090. Question 1. What are the shop rent and the utilities expense (how do I work out the math)? How would I write the adjusting transaction/entries? 2. The amount could be used as a historical cost, how would I write the adjusting transaction/entries?

ASSETS - ACCOUNT NAMES ACCT# CHANGE 20X2 CASH 101 345,654 ACCONTS RECEIVABLE ACCOUNTS RECEIVABLE - PROG BILLINGS ALLOWANCE FOR BAD DEBTS EQUITY SECURITIES SHORT TERM MERCHANDISE INVENTORY WORK IN PROGRESS MANUFACTURING COSTRS VARIABLE MANUFACTURING COSTS RIXED RAW MATERIALS CONSTRUCTION WORK IN PROGRESS CONSTRUCTION WIP PROGRESS BILLINGS 105 106 108 111 121 122 123 124 125 126 127 56,000 0 0 0 0 0 0 0 0 0 0 SUPPLIES ONHAND 129 2,430 PREPAID INSURANCE DEFERRED INCOME TAX CURRENT 132 141 0 0 NOL TAX BENEFIT 142 0 NOL VALUATION ALLOWANCE LAND BUILDINGS BUILDINGS - ACCUMULATED DEPN 143 151 161 162 0 0 0 0 EQUIPMENT 171 0 EQUIPMENT ACCUMULATED DEPN VEHICLES VEHICLES ACCUMULATED DEPN LEASED ASSETS LEASED ASSETS ACCUMULATED DEPN 172 181 182 191 192 7,000 330,000 48,000 0 0 CH AN GE 20X 1 2,0 20 72, 000 0 0 0 0 0 0 0 0 0 0 6,3 00 2,6 00 0 5,4 24 1,8 98 0 0 0 35, 000 7,0 00 0 0 0 0 CHANGE BALANCE 20X2 20X1 347,674 2,020 128,000 0 0 0 0 0 0 0 0 0 0 72,000 0 0 0 0 0 0 0 0 0 0 8,730 6,300 2,600 0 2,600 0 5,424 5,424 1,898 0 0 0 1,898 0 0 0 35,000 35,000 14,000 330,000 48,000 0 0 7,000 0 0 0 0 EQUITY SECURITIES LONG TERM EQUITY SECURITIES EQUIT INTEREST 201 202 0 0 LICENSING COSTS, NET GOODWILL PENSION ASSET DEFERRED INCOME TAX LONG TERM DEFERRED INCOM TAX LONG TERM PENSION START UP COSTS DEFERRED R&D COSTS 211 212 214 215 216 217 221 0 0 15,000 0 0 0 0 0 0 20,000 0 0 0 0 0 0 674,084 TOTAL ASSETS 0 0 5,000 0 0 0 0 0 0 0 0 20, 000 0 0 0 0 0 0 134 ,44 6 808,530 134,446 LIABILITIES AND EQUITY --ACCOUNT NAMES ACCTS PAY INVENTORIABLE COSTS 301 ACCTS PAY SUPPLIERS OTHER COSTS ACCTS PAY EQUIPMENT ACQ 302 303 7,174 WAGES PAYABLE INTEREST PAYABLE NOTES INTEREST PAYABLE LEASE LIAB INTEREST PAYABLE BONDS INCOME TAX PAYABLE DEFERRED INCOME TAXES CURRENT SHORT TERM PORTION OF L T NOTES SHORT TERM PORTION OF L T LEASE LIAB SHORT TERM PORTION OF L T BONDS UNEARNED REVENUE LONG TERM DEBT NOTES CAPITAL LEASES LIABILITY LONG TERM DEBT BONDS DISCOUNT ON BOND PAYABLE PREMIUM ON BOND PAYABLE 305 311 312 313 314 315 321 322 323 335 401 402 403 404 405 5,120 2,880 114,345 288,000 0 15, 900 0 13, 100 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 23,074 15,900 0 7,980 2,880 13,100 0 0 0 0 0 0 0 0 0 0 0 0 0 0 114,345 288,000 ACCRUED PENSION LIABILITY DEFERRED INCOME TAX LONG TERM WARRANTY LIABILITY CAPITAL STOCK PREFERRED PAID IN CAPITAL PREFERRED 414 421 422 451 452 CAPITAL STOCK COMMON PAID IN CAPITAL COMMON PAID IN CAPITAL TREASURY OCI MARKET GAIN/LOSS L T EQUITY SECURITIES OCI MKT GAIN/LOSS TAX (BENEFIT) EXPENSE OCI PRIOR SERVICE COST PENSIONS OCI DEFD PENSION TAX (BENEFIT) EXPENSE 461 462 469 RETAINED EARNINGS RETAINED EARNINGS CAH DIVIDENDS RETAINED EARNINGS STOCK DIVIDENDS RET EARNINGS ERROR CORRECTION RET EARNINGS CUMULATIVE EFFECT TREASURY STOCK 491 492 493 494 495 499 0 0 0 0 0 120 ,00 0 0 0 471 472 475 476 TOTAL LIABIALITIES AND EQUITY 266,805 674,084 0 0 0 0 14, 554 0 0 0 0 0 134 ,44 6 0 0 0 0 0 120,000 120,000 0 0 0 0 0 0 252,251 14,554 0 0 0 0 0 808,530 134,446 INCOME STATEMENT CH AN GE 20X 1 CHANGE REVENES, EXPENSES ACCOUNT NAMES 20X2 SALES REVENUE 501 0 SERVICE REVENUE 505 1,200,000 0 674 ,00 0 PRESENTATIVE (SUBTOTALS) 20X2 20X1 0 0 CONSTRUCTION REVENUE COST OF GOODS SOLD INVENTORY COST OF GOODS SOLD AIR FREIGHT COST OF GOODS SOLD WAREHOUSE RENT 511 521 522 523 0 0 0 0 SERVICE COSTS DIRECT CREW WAGES 551 294,000 SERVICE COSTS DIRECT TRUCK RENTAL 552 15,000 SERVICE COST DIRECT FUEL SERVICE COSTS DIRECT R AND M 553 554 44,800 0 SERVICE COSTS INDIRECT SOP WAGES 561 104,350 SERVICE COSTS INDIRECT SHOP UTILITIES 562 17,438 SERVICE COSTS INDIRECT SHOP RENT 563 27,945 SERVICE COSTS INDIRECT SUPPLIES COST OF CONSTRUCTION REVENUE EARNED 564 581 25,570 0 SELLING & ADMIN UTILITIES 601 4,680 SELLING & ADMIN OFFICE RENTAL SELLING & ADMIN MEDICAL BENEFIT SELLING & ADMIN PENSION EXPENSES 602 603 604 6,000 0 0 SELLING & ADMIN OFFICERS SALARIES 605 79,400 SELLING & ADMIN RENT EQUIPMENT 606 4,000 SELLING & ADMIN SUPPLIES 607 6,000 SELLING & ADMIN OTHER SALARIES 608 52,000 SELLING & ADMIN PROFESSIONAL FEES 609 2,750 SELLING & ADMIN INSURANCE 610 0 SELLING & ADMIN PAYROLL AND OTHER TAXES 614 68,867 0 0 0 0 205 ,40 0 70, 000 32, 000 0 78, 700 15, 000 30, 000 7,7 00 0 3,0 00 6,0 00 0 0 80, 000 4,0 00 5,0 00 52, 000 2,5 00 2,2 00 36, 080 1,200,000 674,000 0 0 0 0 0 0 0 0 0 0 529,103 0 438,800 0 0 0 0 0 0 0 0 0 0 0 SELLING & ADMINISTRATIVE OTHER SELLING & ADMIN SALES SAL & COMM SELLING & ADMIN WAREHOUSE WAGES SELLING & ADMIN BAD DEBTS 615 631 632 651 6,050 0 0 0 START UP CREW TRAING TRUCK DEPRECIATION 680 701 0 48,000 SHOP EQUIPMENT DEPRECIATION WAREHOUSE DEPRECIATION 704 706 7,000 0 AMORITIZATION OF LICENSING COSTS ADMORITIZATION START UP COST AMORTIZATION OF CAPITAL LEASES AMORTIZATION R & D COSTS INTEREST EXPENSE NOTE PAYABLE INTEREST EXPENSE CAPITAL LEASE INTEREST EXPENSE BONDS MARKET GAIN (LOSS) ST EQ SEC REALIZED GAIN MKT EQ SEC INVESTMENT INCOME MKT EQ SEC ST INVESTMENT INCOME MKT EQ SEC LT INVESTMENT INCOME EQUITY METHOD INVEST INVESTORY OVER/SHORT MARKET LOSS ON INVENTORY R & D EXPENSE 710 711 712 713 751 752 753 801 802 803 804 5,000 0 0 0 0 0 0 0 0 0 0 805 808 809 811 0 0 0 0 INCOME TAX EXPENSE DISCONTINUED OPERATIONS 821 860 NET LOSS 5,5 00 0 0 0 45, 000 0 7,0 00 0 5,0 00 0 0 0 0 0 0 0 0 0 0 229,747 0 0 0 0 196,280 45,000 0 0 0 60,000 0 0 0 0 12,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 114,345 0 0 0 0 0 3,5 26 0 114,345 0 3,526 0 266,805 14, 554 266,805 14,554 GENERAL JOURNALO JOURNAOL ENTRIES FOR YEAR 2 TRANSACTION ACC T ACCT NAME 101 CASH 401 LT DEBT NOTES RECORDED ISSUANCE OF LONG TERM NOTES PAYABLE DATE 1 2/1/X2 2 3 4 5 6 7 DEBIT CREDIT 288,000 288,000 181 VEHICLES 101 CASH RECORD PURCHASE OF TRUCKS FROM DEALER 1 288,000 101 CASH 105 A/R 505 SERVICE REVENUE RECORDED REVENUE FROM MAINTENANCE CONTRACTS 228,000 972,000 101 CASH 105 A/R RECEIVED PAYMENT ON ACCOUNTS RECEIVABLE 916,000 551 SC DIRECT CREW WAGES 305 WAGES PAYABLE 101 CASH 305 WAGES PAYABLE RECORDED ACCRUAL AND PAYMENT OF CREW WAGES 294,000 13,100 181 VEHICLES 561 SC DIRECT SHOP WAGES 101 CASH 305 WAGES PAYABLE RECORDEED ACCRUAL AND PAYMENT OF SHOP WAGES 8,000 104,350 181 VEHICLES 288,000 1,200,000 916,000 301,220 5,880 110,250 2,100 600 615 S&A OTHER 605 S&A OFFICER'S SALARIES 608 S&A OTHERS SALARIES 609 S&A PROFESSIONAL FEE 614 PAYROLL AND OTHER TAXES 607 S&A OFFICE SUPPLIES 606 S&A EQUIP RENTAL 101 CASH RECORDED ACCRUAL AND PAYMENT OF S&A EXPENSE 8 9 1 0 1 1 1 2 6,050 79,400 52,000 2,750 68,867 6,000 4,000 181 VEHICLES 562 SC IND SHOP UTILITIES 601 SC IND OFFICE UTILITIES 101 CASH RECORDED ACCRUAL AND PAYMENT OF UTILITIES 1,282 17,438 4,680 181 VEHICLES 563 SC IND SHOP RENT 602 SC IND OFFICE RENT 101 CASH RECORDED ACCRUAL AND PAYMENT OF RENT 2,055 27,945 6,000 553 SC DIRECT FUEL 101 CASH RECORDED PURCHASE AND PAYMENT OF TRUCK FUEL 44,800 219,667 23,400 36,000 44,800 181 VEHICLES 27,183 564 SC IND SUPPLIES EXP 28,000 302 A/P SUPPLIERS RECORDED PURCHASE OF SUPLIES CAPITALIZE SUPLIES USED ON TRUCK MODIFICATION 129 SUPPLIES 564 SC IND SUPPLIES EXP 55,183 2,430 2,430 ADJUSTING TO ENDING SUPPLIES INVENTORY COUNT 1 3 1 4 1 5 552 SC DIR TRUCK RENTAL 15,000 101 CASH RECORDED ACCRUAL AND PAYMENT OF RENT FOR MAINTENANCE TRUCKS 15,000 302 A/P SUPPLIERS 101 CASH RECORDED PAYMENT ON ACCOUNTS PAYABLE 48,009 48,009 181 VEHICLES 2,880 311 INTEREST PAYABLE RECORDED ACCRUED INTEREST DURING CONSTRUCTION PERIODTRUCK 1 6 12/31/X2 701 SC DIR TRUCK DEPREC EXPENSE 182 A/D VEHICLES RECORDED DEPRECIATION ON TRUCKS 1 7 12/31/X2 704 SC DIR SHOP EQUIP DEPREC EXPENSE 172 A/D SHOP EQUIP RECORDED DEPRECIATION ON SHOP EQUIPMENT 1 8 12/31/X2 710 AMORT OF LICENSE AGREEMENT 211 LICENSING COSTS RECORDED AMORTIZATION OF LICENSING COSTS 1 9 12/31/X2 821 INCOME TAX EXPENSE 314 INCOME TAX PAYABLE RECORDED INCOME TAX EXPENSE FOR PERIOD 2,880 48,000 48,000 7,000 7,000 5,000 5,000 114,345 114,345 TRANSACTIONS TOTAL 3,733,164 3,733,164