Susquehanna Euipment Rentals
COMPREHENSIVE PROBLEM 1 SUSQUEHANNA EQUIPMENT RENTALS
Susquehanna Equipment Rentals A mini-practice set illustrating the complete accounting cycle for a service-type business. Includes computation of income taxes expense (as a percentage of income before taxes) and an evaluation of solvency. Can be done as a group assignment. 5 to 6 hours Strong
© The McGraw-Hill Companies, Inc., 2010 CP1-Desc.
5 to 6 hours, Strong
COMPREHENSIVE PROBLEM 1 SUSQUEHANNA EQUIPMENT RENTALS
General Journal December Daily Transactions
a.
2009 Dec 1 Cash Capital Stock Owner invested cash in the business. 1 Rental Equipment Cash Notes Payable Purchased equipment from Rent-it. Note payable is due in one year. 1 Prepaid Rent Cash Paid three months' rent in advance to Shapiro Realty. 4 Office Supplies Accounts Payable Purchased supplies on account; payment due in 30 days. 8 Cash Unearned Rental Fees Received advance payment for equipment rental by McNamer Construction Company. 12 Salaries Expense Cash Paid salaries for first two weeks in December. 15 Cash Accounts Receivable Rental Fees Earned To record rental fees earned in first 15 days of December, 17 Maintenance Expense Accounts Payable To record purchase of repair parts on account from Earth Movers, Inc.; payment due in 10 days. 23 Cash Accounts Receivable Collection of an accounts receivable. 23 (No entry required to record rental of backhoe.) 5,200 5,200 12,000 6,000 18,000 240,000 140,000 100,000
200,000 200,000
12,000 12,000
1,000 1,000
8,000 8,000
600 600
2,000 2,000
© The McGraw-Hill Companies, Inc., 2010 CP1
COMPREHENSIVE PROBLEM 1 SUSQUEHANNA EQUIPMENT RENTALS (continued)
a.
General Journal December Daily Transactions 2009 Dec 26 Salaries Expense Cash Paid biweekly payroll. 27 Accounts Payable Cash Paid account payable to Earth Movers, Inc. 28 Dividends Dividends Payable Declared a dividend of 10 cents per share payable on January 15, 2010. 29 (No journal entry required to record
Susquehanna Equipment Rentals A mini-practice set illustrating the complete accounting cycle for a service-type business. Includes computation of income taxes expense (as a percentage of income before taxes) and an evaluation of solvency. Can be done as a group assignment. 5 to 6 hours Strong
© The McGraw-Hill Companies, Inc., 2010 CP1-Desc.
5 to 6 hours, Strong
COMPREHENSIVE PROBLEM 1 SUSQUEHANNA EQUIPMENT RENTALS
General Journal December Daily Transactions
a.
2009 Dec 1 Cash Capital Stock Owner invested cash in the business. 1 Rental Equipment Cash Notes Payable Purchased equipment from Rent-it. Note payable is due in one year. 1 Prepaid Rent Cash Paid three months' rent in advance to Shapiro Realty. 4 Office Supplies Accounts Payable Purchased supplies on account; payment due in 30 days. 8 Cash Unearned Rental Fees Received advance payment for equipment rental by McNamer Construction Company. 12 Salaries Expense Cash Paid salaries for first two weeks in December. 15 Cash Accounts Receivable Rental Fees Earned To record rental fees earned in first 15 days of December, 17 Maintenance Expense Accounts Payable To record purchase of repair parts on account from Earth Movers, Inc.; payment due in 10 days. 23 Cash Accounts Receivable Collection of an accounts receivable. 23 (No entry required to record rental of backhoe.) 5,200 5,200 12,000 6,000 18,000 240,000 140,000 100,000
200,000 200,000
12,000 12,000
1,000 1,000
8,000 8,000
600 600
2,000 2,000
© The McGraw-Hill Companies, Inc., 2010 CP1
COMPREHENSIVE PROBLEM 1 SUSQUEHANNA EQUIPMENT RENTALS (continued)
a.
General Journal December Daily Transactions 2009 Dec 26 Salaries Expense Cash Paid biweekly payroll. 27 Accounts Payable Cash Paid account payable to Earth Movers, Inc. 28 Dividends Dividends Payable Declared a dividend of 10 cents per share payable on January 15, 2010. 29 (No journal entry required to record