Please use the account list in picture 1 to record entry for picture 2
Cash Accounts Receivable Prepaid Rent Unexpired Insurance Office Supplies Rental Equipment Accumulated depreciation Rental Equipment Notes Payable Accounts Payable Interest Payable Salaries Payable Unearned Rental Fees Common Stock Retained Earnings Rental Fees Earned Salaries Expense Maintenance Expense Rent Expense Office Supplies Expense Utilities Expense Depreciation Expense Interest Expense Mar.1 Mar. 1 Issued to William and his brother 30,000 shares of common stock in exchange for a total of $300,000 cash. Purchased for $220,000 all of equipment formerly owned by Driver-Rentals. Paid $120,000 cash and issued a one-year note payable for $100,000. The note, plus all 12-months of accrued interest, are due on Feb 28, 2021. Mar.2 Paid $12,000 to the landlord as three months' advance rent on the office formerly occupied by Driver Rentals. Mar.4 Purchased Office supplies on account from Modern Office Co., $1,000. Payment due in 30 days. (These supe supplies are expected to last for several months, debit the Office Supplies asset account.) , Mar.9 Received $8,000 cash as advance payment on equipment rental from McGregor Construction Company. (Credit Unearned Rental Fees account) Mar.14 Paid salaries for the first two weeks in March, $5,200. Mar.15 Excluding the McGregor advance, equipment rental fees earned during the first 15 days of March amounted to $18,000, of which $12,000 was received in cash. Mar.17 Purchased on account from Earth Movers Co., $600 in parts needed to repair a rental tractor. (Debit Maintenance Expense account.) Payment is due in 10 days. Mar.23 Collected $2,000 of accounts receivable recorded on March 15. Mar.26 Rented a backhoe to Vision Landscaping at $250 per day, to be paid when the backhoe is returned. Vision Landscaping expects to keep the backhoe for about two or three weeks. Mar.27 Paid the account payable to Earth Movers Co., $600. Mar.28 Paid biweekly salaries, $5,200. Mar.29 Purchased a 12-month public liability insurance policy for $9,600. This policy protects the company against liability for injuries and property damage caused by its equipment. However, the policy goes into effect on Aprili, 2020. Mar.31 Received a bill from CLP Utilities for the month of March, $700. Payment is due in 30 days. Mar.31 Equipment rental fees earned during the second half of March amounted to $20,000, of which $15,600 was received in cash. c. Data for Adjusting Entrie The advance payment of rent on March 2 covered a period of three months. b. The annual interest rate on the note payable on Driver Rentals is 3%. The rental equipment is being depreciated by the straight-line method over a period of 8 years. d. Office supplies on hand at March 31 are estimated at $600. During March, the company earned $3,700 of rental fees paid in advance by McGregor. Construction Company on March 9. As of March 31, six-days' rent on backhoe rented to Vision Landscaping on March 26 has been earned Salaries earned by employees since the last payroll date (March 28) amounted to $1,400 at month-end. *** END*** e. f
