Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

pls list the answer as the questionss format On 1 December 2013, John and Patty Driver formed a corporation called Susquehanna Equipment Rentals. The new

pls list the answer as the questionss format image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
On 1 December 2013, John and Patty Driver formed a corporation called Susquehanna Equipment Rentals. The new corporation 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 newly formed company uses the following accounts Shere Capitel Retained Earnings Accounts Receiveble Prepaid Ret Income Summary Osice Supplies Rental Equipment Notes Poyable Accounts Payable nterest Payable Salares Payable owidends Payable Unearned Rental Fees income Taxes Poyable Utiies Expense Rent Expense Office Supplies Expeme Depreciation Expense Interest txpense Income Tanes Expense The corporation performs adjusting entries monthly. Closing entries are performed annually on 31 December. During December, the corporation entered into the following transactions: OIssued to John and Patty Driver 30,000 new shares in exchange for a total of $300,000 cash. Purchased for $220,800 all of the equipment formerly owned by Rent-lt. Paid $135,000 cash and issued a one-year note payable for $85,800. The notes, plus all 12-months of accrued interest, are due 30 November 2013. Paid $10,500 to Shapiro Realty as three months' advance rent on the rental yard and office formerly occupied by Rent-It Purchased office supplies on account from Modern Office Co $1,700. Payment due in 30 days. (These supplies are expected to last for several months; debit the Office Supplies asset account.) Received $8,200 cash as advance payment on equipment rental from McNamer Construction Company. Credit Unearned Rental Fees.) DPaid salaries for the first two weeks in December, $5,200 Excluding the McNamer advance, equipment rental fees earned during the first 15 days of December amounted to $18,400, of which $12.400 was received in cash. Purchased on account from Earth Movers Limited, $800 in parts needed to repair a rental tractor. (Debit an expense account.) Payment is due in 10 days. Dec. 23 Collected $2,300 of the accounts receivable recorded ont5 0c 26Rented a backhoe to Mission Landscaping at a price of $340 per day, to be paid when the backhoe is returned. Mission Landscaping expects to keep the backhoe for about two or three weeks. 26 Paid biweekly salaries, $5,200

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

IFRS edition volume 2

978-0470613474, 470613475, 978-0470616314

More Books

Students also viewed these Accounting questions