Balance Sheet Accounts Unadjusted Trial Balance Adjustments

Dr. Cr. Dr. Cr.

Cash $ 75,600.00 f.1,800.00
Accounts Receivable $ 13,680.00 f.1,800.00
Prepaid Rent $ 14,400.00 a. 3,600.00
Office Supplies $ 1,200.00 d. 480.00
Rental Equipment $ 288,000.00
[Link]-Equipment c. 3,000.00
Prepaid Insurance $ 11,520.00
Accounts Payable $ 2,040.00
Notes Payable $ 120,000.00
Unearned Rental Fees $ 9,600.00 e. 4,440.00
Income Tax Payable b. 12,096.00
Capital Stock $ 240,000.00
Retained Earnings
Dividends $ 2,400.00
Salaries Payable g. 1,680.00
Interest Payable b. 600.00
Income Statement Accounts
Rental Earned Fees $ 49,200.00 e. 4,440.00
Salaries Expense $ 12,480.00 g. 1,680.00
Office Supplies Expense d. 480.00
Rent Expense a. 3,600.00
Utilities Expense $ 840.00
Maintenance Expense $ 720.00
Depreciation Expense c. 3,000.00
Interest Expense b. 600.00
Income Tax Expense h. 12,096.00
Total $ 420,840.00 $420,840.00 27,696.00 27,696.00
Net Income
Total
 Adjusted Trial Balance Income Statement Balance Sheet
Dr. Cr. Dr. Cr. Dr. Cr.
$ 77,400.00 $ 77,400.00
$ 11,880.00 $ 11,880.00
$ 10,800.00 $ 10,800.00
$ 720.00 $ 720.00
$ 288,000.00 $ 288,000.00
$ 3,000.00 $ 3,000.00
$ 11,520.00 $ 11,520.00
$ 2,040.00 $ 2,040.00
$ 120,000.00 $ 120,000.00
$ 5,160.00 $ 5,160.00
$ 12,096.00 $ 12,096.00
$ 240,000.00 $ 240,000.00

$ 2,400.00 $ 2,400.00
$ 1,680.00
$ 600.00

$ 53,640.00 $ 53,640.00
$ 14,160.00 $ 14,160.00
$ 480.00 $ 480.00
$ 3,600.00 $ 3,600.00
$ 840.00 $ 840.00
$ 720.00 $ 720.00
$ 3,000.00 $ 3,000.00
$ 600.00 $ 600.00
$ 12,096.00 $ 12,096.00
$ 438,216.00 $438,216.00 $ 35,496.00 $ 384,576.00
$ 18,144.00 $ 18,144.00
$ 53,640.00 $ 53,640.00 $ 402,720.00 $ 402,720.00
heet
 (a)    1. Journal Entries (a) 2. Ledger/ T-accounts
Debit Credit Cash
Dec 01 Cash $ 240,000.00 Dr. Cr.
Capital Stock $ 240,000.00 (1) 240,00.00 (1) 168,000.00
(8) 9,600.00 (1) 14,400.00
Dec 01 Rental Equipment $ 288,000.00 (15)14,400.00 (12) 6,240.00
Cash $ 168,000.00 (23) 2,400.00 (26) 6,240.00
Notes Payable $ 120,000.00 (31) 18,720.00 (27) 720.00
(28) 2,400.00
Dec 01 Prepaid Rent $ 14,400.00 (29) 11,520.00
Cash $ 14,400.00 75,600.00

Dec 04 Office Supplies $ 1,200.00 Rental Equipment

Accounts Payable $ 1,200.00 Dr. Cr.
(1) 288,000.00
Dec 08 Cash $ 9,600.00.00
Unearned Rental Fees $ 9,600.00
Accounts Payable
Dec 12 Salaries Expense $ 6,240.00 Dr. Cr.
Cash $ 6,240.00 (2) 720.00 (4)1,200.00
(17) 720.00
Dec 15 Cash $14,400.00 (31) 840.00
Accounts Receivable$7,200.00 2,040.00
Rental Fees $ 21,600.00

Dec 17 Maintenance Expense $720.00 Rental Earned Fees

Accounts Payable $ 720.00 Dr. Cr.
(15)21,600.00
Dec 23 Cash $2,400.00 (26) 3,600.00
Accounts Receivable $ 2,400.00 (31) 24,000.00
49,200.00
Dec 26 Accounts Receivable $ 3,600.00
Rental Fees $ 3,600.00
a. 5. Ledger/ T-accounts - Adjusting
Dec 26 Salaries Expense $ 6,240.00
Cash $ 6,240.00 Cash
Dr. Cr.
Dec 27 Accounts Payable $ 720.00 75,600.00
Cash $ 720.00 (f) 1,800.00
77,400.00
Dec 28 Dividends Payable $ 2,400.00
Cash $ 2,400.00
Unearned Rental Fees
Dec 29 No entry Dr. Cr.
(e) 4,440.00 9,600.00
Dec 29 Unexpired Insurance $ 11,520.00 5,160.00
Cash $ 11,520.00

Dec 31 Utilities Expense $ 840.00 Rental Fees Earned

Accounts Payable $ 840.00 Dr. Cr.
49,200.00
Dec 31 Cash $ 18,720.00 (e) 4,440.00
Accounts Receivable $ 5,280.00 53,640.00
Rental Fees $ 24,000.00

(a)    4. Adjusting Entries

Rent Expense $ 3,600.00

Prepaid Rent $ 3,600.00

Interest Expense $ 600.00

Interest payable $ 600.00

Depreciation Expense $ 3,000.00

Accum. Depn- Rental Eqpt. $ 3,000.00

Supplies Expense $ 480.00

Office Supplies $ 480.00

Unearned Rental Fees $ 4,440.00

Rental Fees $ 4,440.00

Cash $ 1,800.00
Accounts Receivable $ 1,800.00

Salaries Expense $ 1,680.00

Salaries Payable $ 1,680.00

Income Tax Expense $ 12,096.00

Income Tax Payable $ 12,096.00
 unts Asset Accounts
Prepaid Rent Office Supplies Accounts Receivable
Cr. Dr. Cr. Dr. Cr. Dr.
(1) 168,000.00 (1) 14,400.00 (4)1,200.00 (15) 7,200.00
(1) 14,400.00 14,400.00 (26)3,600.00
(12) 6,240.00 (31) 5,280.00
(26) 6,240.00 13,680.00
(27) 720.00
(28) 2,400.00
(29) 11,520.00

Insurance
Dr. Cr.
(29) 11,520.00

Liability and Capital Account

Notes Payable Unearned Rental Fees Dividends Payable Capital Stock
Dr. Cr. Dr. Cr. Dr. Cr. Dr.
(1) 120,000.00 (8) 9,600.00 2,400.00

Temporary Accounts

Salary Expense Utilities Expense Maintence Expense

Dr. Cr. Dr. Cr. Dr. Cr.
(12) 6,240.00 (31) 840.00 (17) 720.00
(26) 6,240.00
12,480.00

unts - Adjusting

Accounts Receivable Prepaid Rent Office Supplies

Dr. Cr. Dr. Cr. Dr. Cr.
13,680.00 1,800.00 14,400.00 (a) 3,600.00 1,200.00 (d) 480.00
11,880.00 10,800.00 720.00

Salaries Payable Interest Payable Income Tax Payable Accum. Depn-Equipment

Dr. Cr. Dr. Cr. Dr. Cr. Dr.
(g) 1,680.00 (b) 600.00 (h) 12,096.00

Salaries Expense Interest Expense Rent Expense Supplies Expense Income Tax Expense
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
(g) 1,680.00 (b) 600.00 (a) 3,600.00 (d) 480.00 (h)12,096.00
Accounts Receivable
Cr.
(15) 7,200.00 (23)2,400.00
(26)3,600.00
(31) 5,280.00

Capital Stock
Cr.
(1) 240,000.00

Accum. Depn-Equipment
Cr.
© 3,000.00

Depn. Expense
Dr. Cr.
© 3,000.00
 INCOME STATEMENT STATEMENT OF RETAINED E
For the Year Ended Dec. 31, 2018 For the Year Ended Dec. 3

REVENUE Retained Earnings, Beginning

Add: Net Income
Rental Fees Earned 53,640.00 Sub-total
Less: Dividends
EXPENSES: Retained Earnings, Ending

Salaries Expense 14,160.00

Office Supplies Expense 480.00
Rent Expense 3,600.00
Utilities Expense 840.00
Maintenance Expense 720.00
Depreciation Expense 3,000.00
Interest Expense 600.00
Income Tax Expense 12,096.00 35,496.00

Net Income 18,144.00

AFTER CLOSING TRIAL BALANCE

As of December 31, 2018

Cash 77,400.00
Accounts Receivable 11,880.00
Prepaid Rent 10,800.00
Office Supplies 720.00
Rental Equipment 288,000.00
Accum. Depn-Equipment 3,000.00
Insurance 11,520.00
Accounts Payable 2040
Notes Payable 120,000.00
Salaries Payable 1,680.00
Unearned Rental Fees 5,160.00
Interest Payable 600.00
Income Tax Payable 12,096.00
Capital Stock 240,000.00
Retained Earnings 15,744.00
400,320.00 400,320.00
 Ledger Closing Accounts

Salaries Expense Rent Expense Utilities Exp.

Dr. Cr. Dr. Cr. Dr. Cr.
14,160.00 14,160.00 3,600.00 3,600.00 840.00 840.00

Income Tax Exp. Office Supplies Exp. Rental Fees Earned

Dr. Cr. Dr. Cr. Dr. Cr.
12,096.00 12,096.00 480.00 480.00 53,640.00 53,640.00

C. Required Disclosures

Note 1 :
Depreciation Expense in the Financial Statement is computed by the straight line method. Esti

Note 2 :
The Company's note payable consist of a single obligation that matures on Nov. 30 of the com
The maturity value of this note, including interest charges will amount to $ 127,200.00

Note 3 :
The Company has a pending lawsuit as a co-defendant filed on behalf of kevin Davidfort amou

F. No., on the basis of its past performance Susquehanne Equipment Rentals generates revenue amounti
this revenue is received in cash and expenses are kept under control, the company may actually become
being insolvent.

G. It is ethical, because preparing accounting records and financial statement is the responsibility of the
TATEMENT OF RETAINED EARNINGS
For the Year Ended Dec. 31, 2018

Earnings, Beginning 0
18,144.00
18,144.00
2,400.00
Earnings, Ending 15,744.00

CLOSING ENTRIES

1. Rental Revenue 53,640.00

Income Summary 53,640.00

2. Income Summary 35,496.00

Salary Exp. 14,160.00
Office Supplies Exp. 480.00
Rent Expense 3,600.00
Utilities Exp. 840.00
Maintenance Exp. 720.00
Depn. Exp. 3,000.00
Interest Exp. 600.00
Income Tax Exp. 12,096.00
to close all expense account

3. Income Summary 18,144.00

Retained Earnings 18,144.00

4. Retained Earnings 2,400.00

 Dividends 2,400.00

Maint. Exp. Depn Exp. Interest Exp.

Dr. Cr. Dr Cr. Dr. Cr.
720.00 720.00 3,000.00 3,000.00 600.00 600.00

Income Summary Dividends Retained Earnings

Dr. Cr. Dr. Cr. Dr. Cr.
35,496.00 53,640.00 2,400.00 2,400.00 2,400.00 18,144.00
18,144.00 18,144.00 15,744.00

e straight line method. Estimated Useful Life is 8 years .

ures on Nov. 30 of the coming year.

unt to $ 127,200.00

alf of kevin Davidfort amounting to $ 30,000.00

enerates revenue amounting to $ 53,640.00. If

pany may actually become more liquid and can pay all its liability without

is the responsibility of the management .