fa - assignment - 01 - copy

8/22/2019 FA - Assignment - 01 - Copy

1/17

Tonys Rentals:

Answer:

Tonys Rental

General JournalFor the month of September 20__

Purchase office supplies on account

Accounts Payable 22 1,630

Sept. 4 Office Supplies 8 1,630

Payable @ 9% per annum

110,000

Paid for Equipment in Cash & Notes

Notes Payable 20

Cash 1 70,000

Sept. 1 Rental Equipment 10 180,000

Paid 3 months advance rent

Cash 1 9,000

Sept. 1 Prepaid Rent 6 9,000

Received cash in business Tonys Re

Anthony Ferrara, Capital 30 100,000

Sept. 1 Cash 1 100,000

DATECREDIT

$

DEBIT

$P/RPARTICULARS

62

63

64

65

66

22

25

26

29

30

35

40

50

60

61

Office Supplies Expense

Depreciation Expense R. Equip.

Interest Expense

6

7

8

10

12

20

Salaries Payable

Unearned Rental Fee

Anthony Ferrara, Capital

Anthony Ferrara, Drawing

Income Summary

Rental Fees Earned

Salaries Expense

Maintenance Expense

Utilities Expense

Rent Expense

Office Supplies

Rental Equipment

Accumulated Dep. R. Equip.

Notes Payable

Account Payable

Interest Payable

On September 1, 20__, Anthony Ferrara organized a business called Tonys Rentals for the

purpose of operating an equipment rental yard. The new business was able to begin operations

immediately by purchasing the assets and taking over the location of Rent-It, an equipment rental

com an that was oin out of business.

Tonys Rental uses the following chart of accounts:

Cash

Account Receivable

1

4

Prepaid Rent

Unexpired Insurance


2/17

2,700

Purchase 12 months insurance policy

Cash 1

Sept. 29 Unexpired Insurance 7 2,700

behalf of Kevin Davenport

Co-defendant $25,000 lawsuit filed o

Sept. 29 No Entry

2,000

Anthony withdrawal for personal use

Cash 1

Sept. 28 Anthony Ferrara, Drawing 35 2,000

340

Paid to Earth Movers Inc.

Cash 1

Sept. 27 Account Payable 22 340

3,600

Paid biweekly salaries

Cash 1

Sept. 26 Salaries Expense 60 3,600

when he return after two or three w

Rented a backhoe @ $100 per day,

Sept. 25 No Entry

210

Received cash on account of rental f

Account Receivable 4

Sept. 23 Cash 1 210

340

Purchase part for repairing on accoun

Accounts Payable 22

Sept. 17 Maintenance Expense 61 340

6,100

Rental fee earned in cash & on acco

Rental Fee Earned 50

Account Receivable 4 800

Sept. 15 Cash 1 5,300

Paid salaries for first two week

Cash 1 3,600

Sept. 12 Salaries Expense 60 3,600

Received advance rent on rental yard

10,000

Unearned Rental Fee 29 10,000

DATE PARTICULARS P/R DEBIT

$

CREDIT

$

Sept. 8 Cash 1


3/17

Tonys Rental

General LedgerFor the month of September 20__

P/R P/R

30 6

29 10

50 60

4 60

50 22

35

7

P/R P/R

50 1

Oct. 1 Balance b/f 590

800

Balance c/f 590

800

Sept. 30


CREDIT $

Sept. 15

Rental Fee

Earned 800 Sept. 23 Cash 210

Oct. 1 Balance b/f 32,720

123,960

Sept. 30

Unexpired

Insurance 2,700

123,960

Sept. 29

Balance c/f 32,720

Sept. 30

Rental Fee

Earned

Sept. 28

8,450 Sept. 27

Salaries Expense 3,600

Salaries Expense 3,600

Anthony Ferrara,

Drawing 2,000

Sept. 15

Rental Fee

Earned 5,300 Sept. 12

Account Payable 340

Sept. 23

Account

Receivable 210 Sept. 26

Rental Equipment 70,000

Sept. 1

Anthony Ferrara,

Capital

Sept. 8

Unearned Rental

Fee 10,000 Sept. 1

CREDIT $

Cash 1

100,000 Sept. 1 Prepaid Rent 9,000

DATE PARTICULAR DEBIT $

PARTICULAR

DATE PARTICULAR

DATE PARTICULAR DEBIT $ DATE

8,450

Received cash of rental fee second h

Rental Fee Earned 50

Sept. 30 Cash 1 8,450

270

Received utility bill m/o September

Account Payable 22

Sept. 30 Utilities Expense 62 270


$

CREDIT

$


4/17

P/R P/R

1

P/R P/R

1

P/R P/R

22

P/R P/R

1 &

20

P/R P/R

10

180,000

180,000

Oct. 1 Balance b/f

Balance c/f

Balance c/f 2,700

2,700

2,700 2,700

Sept. 30

DATE PARTICULAR

Sept. 29 Cash 2,700

DEBIT $ DATE PARTICULAR CREDIT $


Unexpired Insurance 7

9,000

Sept. 30

9,000

Sept. 1 Cash 9,000

Balance c/f 9,000

Prepaid Rent 6

DATE PARTICULAR DEBIT $ DATE PARTICULAR CREDIT $

8

10

PARTICULAR CREDIT $

Sept. 4 Accounts Payable 1,630

DEBIT $ DATE

Office Supplies

1,630

DATE PARTICULAR

Balance b/f 1,630

1,630

Sept. 30 Balance c/f 1,630

DATE

Sept. 1

Cash & Notes

Payable 180,000

DATE PARTICULAR DEBIT $

Oct. 1

PARTICULAR CREDIT $

Sept. 30

Rental Equipment


Notes Payable 20

PARTICULAR CREDIT $

180,000

DEBIT $ DATE

Rental Equipment 110,000

DATE PARTICULAR

Sept. 1


110,000 110,000

Balance b/f 110,000Oct. 1


5/17

P/R P/R

1 8

61

62

P/R P/R

1

P/R P/R

1

P/R P/R

1

PARTICULAR CREDIT $

Sept. 27 Cash 340 Sept. 4

Account Payable 22


Office Supplies 1,630

2,240


2,240


Sept. 17

DEBIT $ DATE

Maintenance

Expense 340

Unearned Rental Fee 29

Sept. 30 Utilities Expense 270

PARTICULAR CREDIT $

Sept. 8 Cash 10,000

DATE PARTICULAR


10,000


10,000

Anthony Ferrara, Capital 30


Sept. 1 Cash 100,000

Sept. 30 Balance c/f

100,000

100,000

Oct. 1

100,000

Balance b/f 100,000

Anthony Ferrara, Drawing 35PARTICULAR CREDIT $DATE PARTICULAR

Sept. 28 Cash 2,000

DEBIT $ DATE


2,000


2,000


6/17

P/R P/R

1 & 4

1

P/R P/R

1

1

P/R P/R

22

P/R P/R

22


Rental Fees Earned 50

PARTICULAR CREDIT $

Cash & Account

Receivable 6,100Sept. 15

Sept. 30 Cash 8,450

14,550


14,550

Balance b/f 14,550

DATE

3,600

DATE PARTICULAR

Salaries Expense

Oct. 1

60

PARTICULAR CREDIT $DEBIT $

Sept. 12 Cash

Sept. 26 Cash 3,600

7,200


7,200

Oct. 1 Balance b/f

Maintenance Expense 61

7,200

Sept. 17 Accounts Payable 340


Sept. 30

340

Balance c/f 340

PARTICULAR CREDIT $


340

Utilities Expense 62

DATE PARTICULAR

Sept. 30 Account Payable 270

DEBIT $ DATE

Sept. 30 Balance c/f 270

270


270


7/17

Tonys Rental

Trail Balance

For the month of September 20__

Tonys Rental

Adjusted General JournalFor the month of September 20__

5 8 Office Supplies 1,630

4 7 Unexpired Insurance 2,700

3 6 Prepaid Rent 9,000

2 4 Account Receivable 590

CREDIT $

1 1 Cash 32,720

S.NO. COA ACCOUNT NAME DEBIT $

Sept. 30 Depreciation Expense R. Equip. 65 1,500

6 10 Rental Equipment 180,000

110,000

8 22 Account Payable 1,900

7 20 Notes Payable

To record Interest @ 9% per annum

10,000

10 30 Anthony Ferrara, Capital 100,000

9 29 Unearned Rental Fee

Interest Payable 25 825

11 35 Anthony Ferrara, Drawing 2,000

14,55013 60 Salaries Expense 7,20012 50 Rental Fees Earned

15 62 Utilities Expense 270

14 61 Maintenance Expense 340

Sept. 30 Interest Expense 66 825

3,000

To record rent expense m/o Sept.

Prepaid Rent 6

TOTAL 236,450 236,450

CREDIT

$

Sept. 30 Rent Expense 63 3,000


$

1,500

To record depreciation m/o Sept.

Accumulated Dep. R. Equip. 12

Sept. 30 Office Supplies Expense 64 530

530

To record depreciation m/o Sept.

Office Supplies 8


8/17

Tonys Rental

Adjusted General LedgerFor the month of September 20__

P/R P/R

50

P/R P/R

63


$

CREDIT

$

Rental Fees Earned 50 4,840

Sept. 30 Unearned Rental Fee 29 4,840

To record rental fee in advance

Rental Fees Earned 50 500

Sept. 30 Account Receivable 4 500

To record 5 days rent earned Mission

Salaries Payable 26 900

Sept. 30 Salaries Expense 60 900

To record salaries expense last payro

Prepaid Rent 6


Sept. 30 Balance c/f 9,000 Sept. 30

Sept. 30


9,000


Balance c/f 6,000

9,000

Rent Expense 3,000



1,090

Balance c/f 1,090Sept. 30

Sept. 30

Rental Fees

Earned 500


1,090


9/17

P/R P/R

64

P/R P/R

65

P/R P/R

66

P/R P/R

60

DEBIT $ DATE

Office Supplies 8

PARTICULAR CREDIT $

Sept. 30 Balance c/f 1,630 Sept. 30

Office Supplies

Expense 530

DATE PARTICULAR


1,630


1,630

PARTICULAR CREDIT $

Sept. 30

Accumulated Dep. R. Equip. 12


Depreciation

Expense R.

Equip. 1,500


1,500

1,500

Oct. 1

1,500

Balance b/f 1,500

Interest Payable 25

PARTICULAR CREDIT $

Interest Expense 825

DATE PARTICULAR

Sept. 30

DEBIT $ DATE


825

Balance b/f 825Oct. 1

825

Salaries Payable 26


Sept. 30 Salaries Expense 900


900

900

Oct. 1

900

Balance b/f 900


10/17

P/R P/R

50

P/R P/R

29

4

P/R P/R

26

P/R P/R

6

Sept. 30

Account

Receivable 500


19,890 19,890

DATE PARTICULAR

Sept. 30 Balance b/f 14,550

Unearned Rental Fee 29

PARTICULAR CREDIT $

5,160

Balance b/f 10,000Sept. 30

Rental Fees

Earned 4,840 Sept. 30



10,000

Oct. 1

10,000

Unearned Rental

Fee 4,840

Balance b/f 5,160




Sept. 30


Salaries Expense 60

PARTICULAR CREDIT $

7,200Sept. 30 Balance c/f

Sept. 30 Salaries Payable 900

8,100


8,100

Balance c/f

Oct. 1 Balance b/f

DATE PARTICULARRent Expense

8,100

3,000

Sept. 30 Prepaid Rent 3,000

63PARTICULAR CREDIT $DEBIT $ DATE

Sept. 30 3,000

3,000



11/17

P/R P/R

8

P/R P/R

12

P/R P/R

25

PARTICULAR DEBIT $ DATE


PARTICULAR CREDIT $

64

Sept. 30 Office Supplies 530

DATE

Balance c/f 530

530

Sept. 30


530

Depreciation Expense R. Equip. 65

PARTICULAR CREDIT $DATE PARTICULAR

Sept. 30

Accumulated

Dep. R. Equip. 1,500

DEBIT $ DATE

Sept. 30

1,500

Balance c/f 1,500

1,500

PARTICULAR CREDIT $


Sept. 30 Interest Payable 825

Interest Expense 66



825 825



12/17

Tonys Rental

Adjusted Trail BalanceFor the month of September 20__

Tonys Rental

Income StatementFor the month of September 20__

Revenue:

Rental Fees Earned

Expenses:Salaries Expense

Maintenance Expense

Utilities Expense

Rent Expense


Depreciation Expense R. Equip.

Interest Expense

Net Income

1,9009 22 Account Payable

1,500

8 20 Notes Payable 110,000

7 12 Accumulated Dep. R. Equip.





32,720

2 4 Account Receivable 1,090

19,890$

5,325$

S.NO. COA ACCOUNT NAME DEBIT $ CREDIT $

1 1

825$ (14,565)$

270$

3,000$

530$

8,100$

340$

Cash

1,500$

10 25 Interest Payable 825

22 65 Depreciation Expense R. Equip. 1,500

20 63 Rent Expense 3,000

21 64 Office Supplies Expense 530

18 61 Maintenance Expense 340

19 62 Utilities Expense 270

16 50 Rental Fees Earned 19,890

17 60 Salaries Expense 8,100

14 35 Anthony Ferrara, Drawing 2,000

15 40 Income Summary

100,000

12 29 Unearned Rental Fee 5,160

13 30 Anthony Ferrara, Capital

900

23 66 Interest Expense 825

11 26 Salaries Payable

240,175TOTAL 240,175


13/17

Tonys Rental

Closing General JournalFor the month of September 20__

Tonys Rental

Closing General LedgerFor the month of September 20__

P/R P/R

40

2,000

Sept. 30 Anthony Ferrara, Capital 30 2,000

Sept. 30 Income Summary 40

Oct. 1 Balance b/f -

19,890 19,890

5,325

5,325

Balance b/f 19,890



Anthony Ferrara, Drawing 35

Sept. 30 Income Summary 19,890 Sept. 30

To closed income summary account

To closed Anthony's, Drawing accoun

PARTICULAR CREDIT $DATE PARTICULAR DEBIT $ DATE

825

To closed expense account m/o Sept.

Interest Expense 66

530Depreciation Expense R. Equip. 65 1,500Office Supplies Expense 64

270

Rent Expense 63 3,000


8,100

Maintenance Expense 61 340

Salaries Expense 60


$

CREDIT

$

Rental Fees Earned 50 19,890

To closed revenue account m/o Sept.

Income Summary 40 19,890

Sept. 30

Income Summary 40 14,565Sept. 30


14/17

P/R P/R

40

P/R P/R

40

P/R P/R

40

P/R P/R

40

P/R P/R

40

Balance b/f -Oct. 1

530 530

Income Summary 530Sept. 30 Balance b/f 530 Sept. 30

Office Supplies Expense 64



3,0003,000

DATE PARTICULAR

Sept. 30 Balance b/f 3,000 Sept. 30 Income Summary 3,000

DEBIT $ DATE

Balance b/f -

Rent Expense 63

PARTICULAR CREDIT $

Oct. 1

270 270





340 340

Sept. 30 Balance b/f 340 Sept. 30 Income Summary 340

Balance b/f -

Maintenance Expense 61

PARTICULAR CREDIT $PARTICULAR

Oct. 1

DEBIT $ DATEDATE

8,100 8,100

60


Sept. 30 Balance b/f 8,100 Sept. 30

Salaries Expense

Income Summary 8,100


15/17

P/R P/R

40

P/R P/R

40

P/R P/R

60 50

61

62

63

64

65

66

30

P/R P/R

30

Balance b/f -Oct. 1

2,000 2,000

Capital 2,000Sept. 30 Balance b/f 2,000 Sept. 30

Anthony Ferrara, Drawing 35


Sept. 30

Anthony Ferrara,

Capital

Sept. 30 Interest Expense 825

5,325

Sept. 30 Rent Expense

Sept. 30

Expense R.

Equip. 1,500

Sept. 30

Office Supplies

Expense 530

3,000

Sept. 30

Maintenance

Expense 340

Sept. 30 Utilities Expense 270

19,890


19,890

DATE PARTICULAR

Sept. 30 Salaries Expense 8,100 Sept. 30

Rental Fees

Earned 19,890

DEBIT $ DATE

Balance b/f -

Income Summary 40

PARTICULAR CREDIT $

Oct. 1

825 825


Interest Expense 66



1,5001,500

DATE PARTICULAR

Sept. 30 Balance b/f 1,500 Sept. 30 Income Summary 1,500

DEBIT $ DATE

Depreciation Expense R. Equip. 65

PARTICULAR CREDIT $


16/17

P/R P/R

35

40

Tonys Rental

Closing Trail BalanceFor the month of September 20__



Sept. 30

Anthony Ferrara,

Drawing 2,000 Sept. 30

105,325


105,325


Sept. 30 Income Summary 5,325

Balance b/f 100,000

DATE PARTICULAR

1 1

CREDIT $

Account Receivable 1,090

S.NO. COA ACCOUNT NAME DEBIT $


Cash 32,720

2 4



110,000

7 12 Accumulated Dep. R. Equip.


825

9 22 Account Payable

1,500

8 20 Notes Payable

5,160

11 26 Salaries Payable

1,900

10 25 Interest Payable

13 30 Anthony Ferrara, Capital

900

12 29 Unearned Rental Fee

223,610TOTAL 223,610

103,325


17/17

Tonys Rental

Balance Sheet

As of September 20__

222,110$

5,160$

30 Anthony Ferrara, Capital 103,325$

26 Salaries Payable 900$

20 Notes Payable 110,000$

29 Unearned Rental Fee

22 Account Payable 1,900$

25 Interest Payable 825$

222,110$

Liabilities & Owner's Equity

12 Less: Accumulated Dep. R. Equip. (1,500)$ 178,500$

8 Office Supplies 1,100$

10 Rental Equipment 180,000$

6 Prepaid Rent 6,000$

7 Unexpired Insurance 2,700$

4 Account Receivable 1,090$

Assets

1 Cash 32,720$

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