JHJ CAR RENTAL COMPANY

2017

TEST 2D

CHART OF ACCOUNTS

• Cash
• Accounts Receivable
• Supplies
• Prepaid Insurance
• Autos
• Accumulated Depreciation-Auto
• Accounts Payable
• Accrued Wages Payable
• Unearned Rental Revenue
• Notes Payable
• JHJ Capital
• JHJ Drawings
• Car Rental Revenue
• Salaries Expense
• Rental Expense
• Advertising Expense
• Interest Expense
• Insurance Expense
• Supplies Expense
• Depreciation Expense

BEGINNING BALANCES (End. balances from 2016):

ACCOUNT	DEBIT	CREDIT
Cash	660,000
Supplies	10,000
Accounts Receivable (5,000 of this amount is due from Dwight)	20,000
Old Auto	160,000
Accumulated Depreciation		120,000
Accounts Payable		16,000
Wages Payable		30,000
JHJ Capital		684,000
TOTAL	850,000	850,000

2017 Transactions

1. Paid accrued salaries from prior year

2. Collected amount due from Dwight Howard

3. Purchased paying cash $45,000 for a new three year insurance policy.

4. Deposited an additional $200,000 into Chase Bank*

5. Purchased supplies on account for $20,000.*

6. Received from Dwight Howard $30,000 in May for advance rental of cars for November NBA openinggame

7. Purchased New Auto for 120,000. Paid cash of $ 60,000, and obtained a Note Payable of 60,000.

8. Paid rent expense of $50,000

9. Paid advertising expense of $20,000

10. Received in cash car rental revenue of $150,000 from individual customers*

11. Billed corporate customers for $15,000 in car rental revenue earned but not received

12. Paid salaries of 100,000.*

13. Collected $5,000 from corporate credit customers

14. Paid $15,000 on accounts payable

15. Paid principal of $ $70,000 and interest of $5,000 on note payable

16. Withdrew $10,000 from the business

17. Supplies on hand at the end of the period was $10,000

18. Old Auto is depreciated utilizing the straight line method over a 4 year life with salvage value expected to be zero at the end of four years

19. Record depreciation for new auto utilizing the straight line method over a life of 3 years with no salvage value

20. Record expiration of one year of insurance

21. Salaries accrued but unpaid at the end of the year totaled $30,000.

22. Dwight Howard rented the cars in October and the bill came to $25,000*

REQUIRED:

1. Prepare journal entries

2. Post to ledger

3. Prepare trial balance

4. Prepare income statement

5. Prepare statement of owners equity

6. Prepare balance sheet

7. Prepare closing entries