A COMPREHENSIVE ACCOUNTING CYCLE PROBLEM
On December 1, 2009, John and Patty Driver formed a corporation called JP Equipment Rentals Co. 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:
|Cash |Income Taxes Payable | |Accounts Receivable |Capital Stock | |Prepaid Rent |Retained Earnings | |Unexpired Insurance |Dividends | |Office Supplies |Income Summary | |Rental Equipment |Rental Fees Earned | |Accumulated Depreciation |Salaries Expense | |Rental Equipment |Maintenance Expense | |Notes Payable |Utilities Expense | |Accounts Payable |Rent Expense | |Interest Payable |Office Supplies Expense | |Salaries Payable |Depreciation Expense | |Dividends Payable |Interest Expense...
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