On January 1, 2021 Sean and Maia formed a company called Hood Rental, Inc. for the purpose of operating an equipment rental yard.

Post the entries to ledger accounts (using T accounts provided). Update T account balances.

1. Prepare the adjusting entries for a to f above.
2. Prepare the Closing Entries and post to the T accounts.

The company closes its accounts and prepares financial statements at the end of month. During January the company had the following transactions.

January 1: Sean and Maia opened a business each contributing $85,000 cash to the company and receiving Capital Stock, no par, for their investment

January 1: Purchased equipment for $240,000. Paid $100,000 cash and issued a one-year note payable for the balance owed, plus interest at the annual rate of 6%.

January 1: Paid $33,600 to Santos Realty for one years advanced rent on the rental yard and office.

January 4: Received $14,000 cash from McBryan Construction Company for equipment rentals for January and February. McBryan will pick up the equipment on January 14^th.

January 8: Purchased office supplies on account from Modern Office Co., $1,800. Payment due in 30 days. (These supplies are expected to last for several months).

January 12: Paid salaries for the first two weeks in January, $8,600.

January 15: Excluding the McBryan advance, equipment rental fees earned during the first 15 days of January amounted to $24,500, of which $8,800 was received in cash.

January 23: Collected $11,200 of the accounts receivable recorded on January 15

January 26: Paid biweekly salaries, $8,300.

January 28: Paid a distribution of $1,500 to each of the owners.

January 31: Received a bill from Universal Utilities for the month of January, $470. Payment is due in 30 days.

January 31: Equipment rental fees earned during second half of January amounted to $21,200 of which $16,000 was on account and the remainder received in cash.

Prepare the January Adjusting Entries in the place provided using the adjusting information given below.

1. The payment of rent on January 1 covered a period of twelve months.
2. Record the interest accrued on the note payable to Rent-it.
3. The rental equipment is being depreciated by the straight-line method over a period of 10 year with no salvage value.
4. Office supplies on hand at January 31 amount to $420.
5. During January, the company earned $8,800 of the rental fees paid in advance by McBryan Construction Co. on January 8.
6. Salaries earned by employees since the last payroll date amounted to $750 at month-end.