A Comprehensive Accounting Cycle Problem
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
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