References Mailings Review View Help - EL 1 l | | cDe AaBbci 1 Heading 11 Normal 1 No Spac... Heading 2 Title Paragraph Styles 1.IIIIIIIIIIIII.4.5 On January 1, 2020 Xavier and Brianne formed a company called Royal Rental, Inc. for the purpose of operating an equipment rental yard. The new company 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 month. During January the company had the following transactions: January 1: Xavier and Brianne opened a business each contributing $85,000 cash to the company and receiving Capital Stock, no par, for their investment Debit Credit January 1: Purchased for $240,000 all of the equipment formerly owned by Rent-It. Paid $100,000 cash and issued a one-year note payable for $140,000, plus interest at the annual rate of 6% Debit Credit r O a Financial Statement Project Summer 2020 - Compatibility Mode - Saved to this PC- erences Mailings Review View Help 1 T AaBbCd AaBbCcDc AaBbCcDc AaBbc AaBb EE E- 1 Heading 1 1 Normal 1 No Spac... Heading 2 Title Paragraph Styles 2 3 4 5 January 1: Paid $33.600 to Santos Realty for one year's advance rent on the rental yard and office formerly occupied by Rent-It. Debit Credit January 4: 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). Debit Credit o Eie W Financial Statement Project Summer 2020 - Compatibility Mode - Saved to this PC- References Mailings Review View Help E ALI AaBbCd AaBbCcDc AaBbCcDc AaBb AaBbc 1 Heading 1 T Normal 1 No Spac... Heading 2 Title Paragraph Styles L2.3.4.5: January 8: Received $14,000 cash from McBryan Construction Company for equipment rentals for January and February. McBryan will pick up the equipment on January 14th Debit Credit January 12: Paid salaries for the first two weeks in January, $8,600. Debit Credit January 15: Excluding the McBryan advance, equipment rental fees earned during the first 15 days of January amounted to $24.500, of which S8.800 was received in cash. Debit Credit W Financial Statement Project Summer 2020 - Compatibility Mode - Saved to this PC- References Mailings Review View Help E ALT SEE - AaBbCd AaBbCcDc AaBbCcDc AaBC AaBbc I Heading 11 Normal 11 No Spac... Heading 2 Title Paragraph Styles 1.2.3.4.5. January 15: Excluding the McBryan advance, equipment rental fees camed during the first 15 days of January amounted to $24,500, of which $8,800 was received in cash Debit Credit January 23: Collected $11,200 of the accounts receivable recorded on January 15 Debit Credit January 26: Paid biweekly salaries, S8,300. Debit Credit Fod e Ea Financial Statement Project Summer 2020 - Compatibility Mode - Saved to this PC- References Mailings Review View Help E 21 AaBbCd AaBbCcDc AaBbCcDc AaBb AaBbc 1 Heading T 1 Normal 1 No Spac... Heading 2 Title Paragraph Styles January 28: Paid a distribution of $1,500 to the owners. Debit Credit January 31: Received a bill from Universal Utilities for the month of January, $470. Payment is due in 30 days. Debit Credit January 31: Equipment rental fees earned during second half of January amounted to $21,200 of which $16,000 was on account and rest in cash. Debit Credit Financial Statement Project Summer 2020 - Compatibility Mode - Saved to this PC- References Mailings Review View Help E ALI AaBbcd AaBbCcDc AaBbCcDc AaBbc AaBbc 1 Heading 1 Normal 1 No Spac. Heading 2 Title Paragraph Styles Data for January Adjusting Entries: a. The advance payment of rent on January 1 covered a period of twelve months. Debit Credit b. Record the interest accrued on the note payable to Rent-it. Debit Credit T o RI e Financial Statement Project Summer 2020 - Compatibility Mode - Saved to this PC- References Mailings Review View Help E ALT AaBbCd AaBbCcDc AaBbCcDc AaBb AaBbc 1 Heading 1 T Normal 1 No Spac... Heading 2 Title Paragraph Styles !!!!!!!!!!!!!!!!!3.....4.....5 c. The rental equipment is being depreciated by the straight-line method over a period of 10 years with no salvage value. Debit Credit d. Office supplies on hand at January 31 amount to $420. Debit Credit e. During January, the company earned $12,300 of the rental fees paid in advance by McBryan Construction Co. on January 8. Debit Credit f. Salaries earned by employees since the last payroll date amounted to $750 at month end. Debit Credit O Foa w Financial Statement Project Summer 2020 - Compatibility Mode - Saved to this PC- rences Mailings Review View Help E ALT AaBbcd AaBbceDd AaBbccDd AaBb AaBbc 11 Heading 1 11 Normal 1 No Spac... Heading 2 Title Paragraph Styles Salaries camed by employees since the last payroll date amounted to $750 at month- end Debit Credit Instructions 1) Prepare the journal entries for the January in the space provided. 2) Post the entries to ledger accounts (using 'T' accounts provided). Update "T" account balances 3) Prepare the adjusting entries for a to f above. 4) Post the adjusting entries to the ledger accounts (using the same 'T' accounts). Update 'T' account balances. 5) Prepare the January Trial Balance 6) Prepare the January financial statements (income statement, statement of retained earnings and the balance sheet. DF w X ACFI 200 Financial Statement Project Students - Compatibility Mode me Insert Draw Page Layout Formulas Data Review View Help Arial 10 AA == a Wrap Text Number BIU a-A- Merge & Center $ -% 9 Font Alignment Number D E F G H 1 J K L Cash iccounts Receivable: Prepaid Rent Supplies Equipment Accumulated Depr. Interest Payable Accounts Payable Jnearned Rental Rei Notes Payable Capital Stock Capital Stock Dividends Retained Earnings Rental Income T accounts Students Trial Balance Financial Statements Type here to search a ve Off ACFI 200 Financial Statement Project Students - Compatibility Mode - Home Insert Draw Page Layout Formulas Data Review View Help ab Wrap Text B Arial 10 - AA == === B 1 0 - 1 0 - A - == Number Merge & Center $ -% 9 .00 Font Alignment Number X f B D E F G - H J K L Capital Stock Dividends Retained Earnings Rental Income Salary Expense Utilities Expense Rent Expense Interest Expense Depreciation Expensi Supplies Expense T accounts Students Trial Balance Financial Statements Type here to search O e References Mailings Review View Help - EL 1 l | | cDe AaBbci 1 Heading 11 Normal 1 No Spac... Heading 2 Title Paragraph Styles 1.IIIIIIIIIIIII.4.5 On January 1, 2020 Xavier and Brianne formed a company called Royal Rental, Inc. for the purpose of operating an equipment rental yard. The new company 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 month. During January the company had the following transactions: January 1: Xavier and Brianne opened a business each contributing $85,000 cash to the company and receiving Capital Stock, no par, for their investment Debit Credit January 1: Purchased for $240,000 all of the equipment formerly owned by Rent-It. Paid $100,000 cash and issued a one-year note payable for $140,000, plus interest at the annual rate of 6% Debit Credit r O a Financial Statement Project Summer 2020 - Compatibility Mode - Saved to this PC- erences Mailings Review View Help 1 T AaBbCd AaBbCcDc AaBbCcDc AaBbc AaBb EE E- 1 Heading 1 1 Normal 1 No Spac... Heading 2 Title Paragraph Styles 2 3 4 5 January 1: Paid $33.600 to Santos Realty for one year's advance rent on the rental yard and office formerly occupied by Rent-It. Debit Credit January 4: 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). Debit Credit o Eie W Financial Statement Project Summer 2020 - Compatibility Mode - Saved to this PC- References Mailings Review View Help E ALI AaBbCd AaBbCcDc AaBbCcDc AaBb AaBbc 1 Heading 1 T Normal 1 No Spac... Heading 2 Title Paragraph Styles L2.3.4.5: January 8: Received $14,000 cash from McBryan Construction Company for equipment rentals for January and February. McBryan will pick up the equipment on January 14th Debit Credit January 12: Paid salaries for the first two weeks in January, $8,600. Debit Credit January 15: Excluding the McBryan advance, equipment rental fees earned during the first 15 days of January amounted to $24.500, of which S8.800 was received in cash. Debit Credit W Financial Statement Project Summer 2020 - Compatibility Mode - Saved to this PC- References Mailings Review View Help E ALT SEE - AaBbCd AaBbCcDc AaBbCcDc AaBC AaBbc I Heading 11 Normal 11 No Spac... Heading 2 Title Paragraph Styles 1.2.3.4.5. January 15: Excluding the McBryan advance, equipment rental fees camed during the first 15 days of January amounted to $24,500, of which $8,800 was received in cash Debit Credit January 23: Collected $11,200 of the accounts receivable recorded on January 15 Debit Credit January 26: Paid biweekly salaries, S8,300. Debit Credit Fod e Ea Financial Statement Project Summer 2020 - Compatibility Mode - Saved to this PC- References Mailings Review View Help E 21 AaBbCd AaBbCcDc AaBbCcDc AaBb AaBbc 1 Heading T 1 Normal 1 No Spac... Heading 2 Title Paragraph Styles January 28: Paid a distribution of $1,500 to the owners. Debit Credit January 31: Received a bill from Universal Utilities for the month of January, $470. Payment is due in 30 days. Debit Credit January 31: Equipment rental fees earned during second half of January amounted to $21,200 of which $16,000 was on account and rest in cash. Debit Credit Financial Statement Project Summer 2020 - Compatibility Mode - Saved to this PC- References Mailings Review View Help E ALI AaBbcd AaBbCcDc AaBbCcDc AaBbc AaBbc 1 Heading 1 Normal 1 No Spac. Heading 2 Title Paragraph Styles Data for January Adjusting Entries: a. The advance payment of rent on January 1 covered a period of twelve months. Debit Credit b. Record the interest accrued on the note payable to Rent-it. Debit Credit T o RI e Financial Statement Project Summer 2020 - Compatibility Mode - Saved to this PC- References Mailings Review View Help E ALT AaBbCd AaBbCcDc AaBbCcDc AaBb AaBbc 1 Heading 1 T Normal 1 No Spac... Heading 2 Title Paragraph Styles !!!!!!!!!!!!!!!!!3.....4.....5 c. The rental equipment is being depreciated by the straight-line method over a period of 10 years with no salvage value. Debit Credit d. Office supplies on hand at January 31 amount to $420. Debit Credit e. During January, the company earned $12,300 of the rental fees paid in advance by McBryan Construction Co. on January 8. Debit Credit f. Salaries earned by employees since the last payroll date amounted to $750 at month end. Debit Credit O Foa w Financial Statement Project Summer 2020 - Compatibility Mode - Saved to this PC- rences Mailings Review View Help E ALT AaBbcd AaBbceDd AaBbccDd AaBb AaBbc 11 Heading 1 11 Normal 1 No Spac... Heading 2 Title Paragraph Styles Salaries camed by employees since the last payroll date amounted to $750 at month- end Debit Credit Instructions 1) Prepare the journal entries for the January in the space provided. 2) Post the entries to ledger accounts (using 'T' accounts provided). Update "T" account balances 3) Prepare the adjusting entries for a to f above. 4) Post the adjusting entries to the ledger accounts (using the same 'T' accounts). Update 'T' account balances. 5) Prepare the January Trial Balance 6) Prepare the January financial statements (income statement, statement of retained earnings and the balance sheet. DF w X ACFI 200 Financial Statement Project Students - Compatibility Mode me Insert Draw Page Layout Formulas Data Review View Help Arial 10 AA == a Wrap Text Number BIU a-A- Merge & Center $ -% 9 Font Alignment Number D E F G H 1 J K L Cash iccounts Receivable: Prepaid Rent Supplies Equipment Accumulated Depr. Interest Payable Accounts Payable Jnearned Rental Rei Notes Payable Capital Stock Capital Stock Dividends Retained Earnings Rental Income T accounts Students Trial Balance Financial Statements Type here to search a ve Off ACFI 200 Financial Statement Project Students - Compatibility Mode - Home Insert Draw Page Layout Formulas Data Review View Help ab Wrap Text B Arial 10 - AA == === B 1 0 - 1 0 - A - == Number Merge & Center $ -% 9 .00 Font Alignment Number X f B D E F G - H J K L Capital Stock Dividends Retained Earnings Rental Income Salary Expense Utilities Expense Rent Expense Interest Expense Depreciation Expensi Supplies Expense T accounts Students Trial Balance Financial Statements Type here to search O e