On September 1, 2007, Mr. Aftan organized a business called Afran's Rentals for the purchase of operating an equipment rental yard. Mr. Afnan's new business was able to begin operations immediately by purchasing the assets and taking over the location of Rent-IT, an equipment rental company that was going out of business The company closes its accounts and prepares financial statements at the end of each month During September, company entered into the following business transactions event Sept 1, Sept 1, Sept 1, Sept 4, Sept 8, Sept 12, Sept 15, Sept 17, Sept 23, Sept 25, Sept 26, Sept 27, Sept 28, Sept 29, Sept 30, Sept 30, Mr. Afhan deposited Rs. 1,00,000 cash name of Business, Afhan's Rentals Paid Rs. 9000 to Mr. Irfan as three month's advance rent on the rental yard and office formerly occupied by Rest-IT Purchased for Rs. 180,000 all the equipment from Rent-IT. Paid Rs. 70,000 cash and issood a one year notes payable for Rs. 110,000, plus interest at the annual rate of 9% Purchased office supplies on account from Modern office Co; Rs. 1,630, Payment due in 30 days (these supplies are expected to last for several months; so debit the office supplies asset account). Received Rs. 10,000 cash from McBrayan Construction Co. as advance payment on rental equipment. Paid salaries for the first two weeks in September Rs. 3,600 Excluding the McBrayan Construction Co advance, equipment rental fees earned during the first 15 days of September amounted Rs. 6100, out of which Rs. 5,300 was received in Cash Purchased on account from the Earth Movers, Inc., Rs. 340 in parts needed to repair a rental tractor. Payment is due in 10 days. Collected Rs. 210 of accounts receivable recorded on September 15. Rented a backhoe (digging machine) to Massion Landscaping at a price of Rs. 100 per day, to be paid when the backhoe is returned Mission landscaping expects to keep the hackhoe for about two or three weeks. Paid biweekly salaries, Rs.3, 600. Paid the account payable to the Earth Movers, Inc., Rs.340. Mr. Alan withdrew Rs. 2,000 cash from business to pay the rent on his personal residence Purchased a 12-month public-liability insurance policy for Rs. 2,700. The policy protects the company against the liability for injuries and property damage cause by its equipment. However the policy goes into effective on October 1. Received a bill from Universal Utilities for the month of September Rx270. Payment is due in 30 days. Equipment rental fees earned during second half of September and received in cash amounted to Rs R,450. Data for adjusting entries The advance payment of rent on September 1" covered a period of three months Interest accrued on the notes payable to Rent-IT amounted to Rs. 825 at September 30. e. The Rental Equipment was depreciated by the straight line method over a period of 10 years. 4 Office supplies on hand at September 30 are estimated at Rs. 1100 e. During September, the company earned Rs. 4,840 of the rental fees paid by McBrayan Construction Company on September 0 As of September 30, Afisan's Rental has earned five days' rent on the backhoe rented to Mission Landscaping on September 25 Salaries camed by employees since the last payroll date (September 26) amounted Rs. 900 at month end. Requirement 1. Journalize the transactions of September 01" to September 30% 2. Post to ledger accounts 3. Prepare trial balance. 4. Pass adjusting entries. 5. Post to Adjusted Ledger Accounts (Prepare only relevant ledger accounts which are used in entries Prepare adjusted Trial balance. 7 Pass Closing Entries Prepare relevant Expense (any one), income (any one), income summary, and capital account 9. Prepare Closing Trial Balance 10. Income Statement for the month ended September 30, 2007. 11. Balance Sheet as on September 30, 2007, 12. Statement of Changes in owner's equity for the month ended September 30, 2007. On September 1, 2007, Mr. Afnan organized a business called Afnan's Rentals for the purchase of operating an equipment rental yard. Mr. Afnan's new business was able to begin operations immediately by purchasing the assets and taking over the location of Rent-IT, an equipment rental company that was going out of business. The company closes its accounts and prepares financial statements at the end of each month. During September, company entered into the following business transactions/events: Mr. Afnan deposited Rs. 1,00,000 cash name of Business, Afnan's Rentals. Paid Rs. 9000 to Mr. Irfan as three month's advance rent on the rental yard and office formerly occupied by Rent-IT. Purchased for Rs. 180,000 all the equipment from Rent -IT. Paid Rs. 70,000 cash and issued a one year notes payable for Rs. 110,000, plus interest at the annual rate of 9%. Purchased office supplies on account from Modem office Co; Rs. 1,630. Payment due in 30 days (these supplies are expected to last for several months; so debit the office supplies asset account). Received Rs. 10,000 cash from McBrayan Construction Co. as advance payment on rental equipment. Paid salaries for the first two weeks in September Rs. 3,600. Excluding the McBrayan Construction Co advance, equipment rental fees earned during the first 15 days of September amounted Rs. 6100, out of which Rs. 5,300 was received in Cash Sept 1, Sept 1, Sept 1, Sept 4, Sept 8, Sept 12, Sept 15, Sept 17, Sept 23, Sept 25, Sept 26, Sept 27, Paid biweekly salaries, Rs.3, 600. Sept 28, Sept 29, Sept 30, Sept 30, Purchased on account from the Earth Movers, Inc., Rs. 340 in parts needed to repair a rental tractor. Payment is due in 10 days. Collected Rs. 210 of accounts receivable recorded on September 15. Rented a backhoe (digging machine) to Mission Landscaping at a price of Rs. 100 per day, to be paid when the backhoe is returned. Mission landscaping expects to keep the backhoe for about two or three weeks. Paid the account payable to the Earth Movers, Inc., Rs.340. Mr. Afnan withdrew Rs. 2,000 cash from business to pay the rent on his personal residence. Purchased a 12-month public-liability insurance policy for Rs. 2,700. The policy protects the company against the liability for injuries and property damage cause by its equipment. However the policy goes into effective on October 1. Received a bill from Universal Utilities for the month of September Rs.270. Payment is due in 30 days. Equipment rental fees earned during second half of September and received in cash amounted to Rs. 8,450. Data for adjusting entries a. The advance payment of rent on September 1" covered a period of three months. b. Interest accrued on the notes payable to Rent-IT amounted to Rs. 825 at September 30. c. The Rental Equipment was depreciated by the straight line method over a period of 10 years. d. Office supplies on hand at September 30 are estimated at Rs. 1100. e. During September, the company earned Rs. 4,840 of the rental fees paid by McBrayan Construction Company on September 08. f. As of September 30, Afnan's Rental has earned five days' rent on the backhoe rented to Mission Landscaping on September 25. g. Salaries earned by employees since the last payroll date (September 26) amounted Rs. 900 at month end. Requirement 1. Journalize the transactions of September 01 to September 30th 2. Post to ledger accounts. 3. Prepare trial balance. 4. Pass adjusting entries. 5. Post to Adjusted Ledger Accounts (Prepare only relevant ledger accounts which are used in adjusted entries). 6. Prepare adjusted Trial balance. 7. Pass Closing Entries. 8. Prepare relevant Expense (any one), income (any one), income summary, and capital account. 9. Prepare Closing Trial Balance. 10. Income Statement for the month ended September 30, 2007. 11. Balance Sheet as on September 30, 2007. 12. Statement of Changes in owner's equity for the month ended September 30, 2007. On September 1, 2007, Mr. Afnan organized a business called Afnan's Rentals for the purchase of operating an equipment rental yard. Mr. Afnan's new business was able to begin operations immediately by purchasing the assets and taking over the location of Rent-IT, an equipment rental company that was going out of business. The company closes its accounts and prepares financial statements at the end of each month. During September, company entered into the following business transactions/events: Sept 1, Sept 1, Sept 1, Sept 4, Sept 8, Sept 12, Sept 15, Mr. Afnan deposited Rs. 1,00,000 cash name of Business, Afnan's Rentals. Paid Rs. 9000 to Mr. Irfan as three month's advance rent on the rental yard and office formerly occupied by Rent-IT. Purchased for Rs. 180,000 all the equipment from Rent -IT. Paid Rs. 70,000 cash and issued a one year notes payable for Rs. 110,000, plus interest at the annual rate of 9%. Purchased office supplies on account from Modern office Co; Rs. 1,630. Payment due in 30 days (these supplies are expected to last for several months; so debit the office supplies asset account). Received Rs. 10,000 cash from McBrayan Construction Co. as advance payment on rental equipment. Paid salaries for the first two weeks in September Rs. 3,600. Excluding the McBrayan Construction Co advance, equipment rental fees earned during the first 15 days of September amounted Rs. 6100, out of which Rs. 5,300 was received in Cash Purchased on account from the Earth Movers, Inc., Rs. 340 in parts needed to repair a rental tractor. Payment is due in 10 days. Collected Rs. 210 of accounts receivable recorded on September 15. Rented a backhoe (digging machine) to Mission Landscaping at a price of Rs. 100 per day, to be paid when the backhoe is returned. Mission landscaping expects to keep the backhoe for about two or three weeks. Paid the account payable to the Earth Movers, Inc., Rs.340. Sept 17, Sept 23, Sept 25, Sept 26, Paid biweekly salaries, Rs.3, 600. Sept 27, Sept 28, Sept 29, Sept 30, Sept 30, Mr. Afnan withdrew Rs. 2,000 cash from business to pay the rent on his personal residence. Purchased a 12-month public-liability insurance policy for Rs. 2,700. The policy protects the company against the liability for injuries and property damage cause by its equipment. However the policy goes into effective on October 1. Received a bill from Universal Utilities for the month of September Rs.270. Payment is due in 30 days. Equipment rental fees earned during second half of September and received in cash amounted to Rs. 8,450. Data for adjusting entries a. The advance payment of rent on September 1 covered a period of three months. b. Interest accrued on the notes payable to Rent-IT amounted to Rs. 825 at September 30. c. The Rental Equipment was depreciated by the straight line method over a period of 10 years. d. Office supplies on hand at September 30 are estimated at Rs. 1100. e. During September, the company earned Rs. 4,840 of the rental fees paid by McBrayan Construction Company on September 08. f. As of September 30, Afnan's Rental has earned five days' rent on the backhoe rented to Mission Landscaping on September 25. g. Salaries earned by employees since the last payroll date (September 26) amounted Rs. 900 at month end. Requirement 1. Journalize the transactions of September 01 to September 30th 2. Post to ledger accounts. 3. Prepare trial balance. 4. Pass adjusting entries. 5. Post to Adjusted Ledger Accounts (Prepare only relevant ledger accounts which are used in adjusted entries). 6. Prepare adjusted Trial balance. 7. Pass Closing Entries. 8. Prepare relevant Expense (any one), income (any one), income summary, and capital account. 9. Prepare Closing Trial Balance. 10. Income Statement for the month ended September 30, 2007. 11. Balance Sheet as on September 30, 2007. 12. Statement of Changes in owner's equity for the month ended September 30, 2007