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COMPREHENSIVE PROBLEM 1 SUSQUEHANNA EQUIPMENT RENTALS a.

General JournalDecember Daily Transactions

2009 Debit Credit

Dec 1

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COMPREHENSIVE PROBLEM 1 SUSQUEHANNA EQUIPMENT RENTALS (continued)a.

General JournalDecember Daily Transactions

2009

Dec

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COMPREHENSIVE PROBLEM 1SUSQUEHANNA EQUIPMENT RENTALS

(continued)a.

General JournalDecember Daily Transactions

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COMPREHENSIVE PROBLEM 1 SUSQUEHANNA EQUIPMENT RENTALS (continued)a.

General Journal(Adjusting Entries)

2009

Dec

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COMPREHENSIVE PROBLEM 1 SUSQUEHANNA EQUIPMENT RENTALS

(continued)a. Cash

Date Explanation Debit Credit Balance

Dec

Accounts Receivable

Date Explanation Debit Credit Balance

Dec

Prepaid RentDate Explanation Debit Credit Balance

Dec

Unexpired InsuranceDate Explanation Debit Credit Balance

Dec

Office SuppliesDate Explanation Debit Credit Balance

Dec

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COMPREHENSIVE PROBLEM 1 SUSQUEHANNA EQUIPMENT RENTALS

(continued)a. Rental Equipment

Date Explanation Debit Credit Balance

Dec 1

Accumulated Depreciation: Rental EquipmentDate Explanation Debit Credit Balance

Dec 31

Notes PayableDate Explanation Debit Credit Balance

Dec 1

Accounts PayableDate Explanation Debit Credit Balance

Dec

Interest PayableDate Explanation Debit Credit Balance

Dec

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COMPREHENSIVE PROBLEM 1 SUSQUEHANNA EQUIPMENT RENTALS

(continued)a. Salaries Payable

Date Explanation Debit Credit Balance

Dec 31

Dividends PayableDate Explanation Debit Credit Balance

Dec 28

Unearned Rental FeesDate Explanation Debit Credit Balance

Dec

Income Taxes PayableDate Explanation Debit Credit Balance

Dec 31

Capital StockDate Explanation Debit Credit Balance

Dec 1

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COMPREHENSIVE PROBLEM 1 SUSQUEHANNA EQUIPMENT RENTALS

(continued)a. & d. Retained Earnings

Date Explanation Debit Credit Balance

Dec

DividendsDate Explanation Debit Credit Balance

Dec

Income SummaryDate Explanation Debit Credit Balance

Dec

Rental Fees EarnedDate Explanation Debit Credit Balance

Dec

Salaries ExpenseDate Explanation Debit Credit Balance

Dec

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COMPREHENSIVE PROBLEM 1 SUSQUEHANNA EQUIPMENT RENTALS

(continued)a. & d. Maintenance Expense

Date Explanation Debit Credit Balance

Dec

Utilities ExpenseDate Explanation Debit Credit Balance

Dec 31 31

Rent ExpenseDate Explanation Debit Credit Balance

Dec 31 4,000 4,000 31 To close 4,000 0

Office Supplies ExpenseDate Explanation Debit Credit Balance

Dec 31 31

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COMPREHENSIVE PROBLEM 1 SUSQUEHANNA EQUIPMENT RENTALS

(continued)a. & d. Depreciation Expense

Date Explanation Debit Credit Balance

Dec

Interest ExpenseDate Explanation Debit Credit Balance

Dec

Income Taxes ExpenseDate Explanation Debit Credit Balance

Dec

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SUSQUEHANNA EQUIPMENT RENTALS COMPREHENSIVE PROBLEM 1 Worksheet SUSQUEHANNA EQUIPMENT

December 31, 2009 RENTALS (continued) a.

Trial Balance Adjustments* Adjusted Trial Balance Income Statement Balance Sheet Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit

Balance sheet accounts : Cash $ 65,000 $ - Accounts receivable 8,400 (f) - Prepaid rent 12,000 (a) - Unexpired insurance 9,600 - Office supplies 1,000 (d) - Rental equipment 240,000 - Notes payable $ 100,000 $ - Accounts payable 1,700 - Unearned rental fees 8,000 (e) - Dividends payable 2,000 - Capital stock 200,000 - Retained earnings - Dividends 2,000 - Interest payable (b) Accum. Dep.: rental equip. (c) - Salaries payable (g) - Income taxes payable (h) -

Income statement accounts: Rental fees earned 38,000 (e)

(f) Salaries expense 10,400 (g)

Maintenance expense 600

Utilities expense 700

$ 349,700 $ 349,700 Rent expense (a)

Interest expense (b)

Depreciation expense (c)

Office supplies expense (d)

Income taxes expense (h)

$ - $ - $ - $ - - - - - Net income 13,620 13,620 Totals $ 13,620 $ - $ - $ 13,620 * Adjustments

(e) Portion of unearned revenue earned in December.(b) December interest expense ($100,000 x 6% x 1/12). (f) Accrued revenue earned in December.

(g) Accrued salaries at month-end.(d) Office supplies used in December ($1,000 - $600). (h) Accrued income taxes expense at month-end.

(a) December rent expense ($12,000 ÷ 3).

(c) December depreciation expense ($240,000 ÷ 96 months).

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COMPREHENSIVE PROBLEM 1SUSQUEHANNA EQUIPMENT RENTALS

(continued)b.

SUSQUEHANNA EQUIPMENT RENTALSIncome Statement

For the Year Ended December 31, 2009

Revenue:

Expenses Income before income taxes expense Income taxes expense @ 40% Net income

SUSQUEHANNA EQUIPMENT RENTALSStatement of Retained Earnings

For the Year Ended December 31, 2009

Retained earnings, December 1, 2009

Subtotal

Retained earnings, December 31, 2009

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COMPREHENSIVE PROBLEM 1SUSQUEHANNA EQUIPMENT RENTALS

(continued)b.

SUSQUEHANNA EQUIPMENT RENTALSBalance Sheet

December 31, 2009

Assets

Total assets

Liabilities & Owners' EquityLiabilities:

Stockholders' equity:

Total liabilities and stockholders' equity

c. Notes to the financial statements:

Note 1—Depreciation policies

Note 2—Maturity dates of liabilities

Note 3—Pending litigation

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COMPREHENSIVE PROBLEM 1 SUSQUEHANNA EQUIPMENT RENTALS (continued)d.

General Journal(Closing Entries)

2009

Dec 31

31

31

31

e.SUSQUEHANNA EQUIPMENT RENTALS

After-Closing Trial BalanceDecember 31, 2009

Totals $ - $ -

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COMPREHENSIVE PROBLEM 1 SUSQUEHANNA EQUIPMENT RENTALS (concluded)

f.

g.