JOURNAL ENTRY

STUDY PROBLEM 1-12

FINANCIAL TRANSACTIONS

1. Invested $200,000 to start JHJ rental car company
2. Paid cash of $10,000 for supplies
3. Paid cash of $24,000 for two year insurance policy
4. Purchased equipment on account in the amount of $10,000
5. Purchased $15,000 in supplies on account
6. Paid advertising expense of $10,000
7. Purchased ten autos for $30,000 each paying $50,000 down and signed a note for the balance
8. Received cash car rental revenue $400,000
9. Paid office salaries of $80,000
10. Paid rent expense of $40,000
11. Car rental revenue earned from corporate customers on account $100,000
12. Paid on accounts payable $20,000
13. Collection of cash from corporate customers $100,000
14. Invested an additional $100,000 in the business
15. Received cash car rental revenue $500,000
16. Paid sales salaries of $300,000
17. Car rental revenue earned from corporate customers $50.000
18. Collection of cash from corporate customers
19. Paid rent expense of $40,000
20. Paid delivery expenses of $4,000
21. Paid dividends of $5,000
22. Purchased supplies on account $20,000
23. Purchased supplies paying cash of $5,000
24. Paid principal on note payable $40,000
25. Paid interest expense on note payable $4,000
26. Cash car rental revenue received $75,000
27. Car rental revenue billed to corporate customers $125,000
28. Collections from corporate customers $125,000
29. Paid advertising expense $12,000
30. Paid miscellaneous office expenses $2,000
31. Invested additional $50,000 in the business
32. Paid dividends of $10,000
33. Purchased land for $200,000 paying $50,000 down and signed a note for balance
34. Paid principal on note payable $50,000
35. Paid interest on note payable $5,000
36. Received cash care rental income of $150,000
37. Billed corporate customers for car rental $250,000
38. Collected car rental income from corporate customers $100,000
39. Paid dividends $20,000
40. Purchased supplies on account $15,000
41. Ending supplies inventory $20,000
42. Bad debt expense 1% of credit sales
43. Dwight Howard paid $20,000 in advance to rent cars for friends for the NBA All Star Game
44. Depreciation expense on equipment is calculated utilizing straight-line method and five year life
45. Depreciation expense on autos is calculated utilizing the double declining balance method and a five year life
46. Record expiration of one year's insurance premiums
47. Accrued salaries at end of year totaled $12,000
48. Dwight Howard was provided cars for all-star game

REQUIRED:

1. PREPARE JOURNAL ENTRIES AND POST ALL ENTRIES TO LEDGER

CHART OF ACCOUNTS

BALANCE SHEET ACCOUNTSINCOME STATEMENT ACCOUNTS

Attachment:- Financial_Accounting_Spreadsheet.xlsx