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Adjusting Entries Date Sept 30, Year 2 Sept 30, Year 2 Sept 30, Year 2 Transaction or Event The rent paid to Liacouras Agency was for 3 months. Interest accrued on the note payable was $1,000 at the end of the month Rental equipment is being depreciated over 15 years. The Camelots have chosen to use the straight-line method of depreciation. At the end of the month supplies worth $1,250 were on hand. Sept 30, Year 2 Sept 30, Year 2 Sept 30, Year 2 Sept 30, Year 2 During the month, Digger O'Dell had used $6,000 of rental equipment. By the end of the month, Landscrapers Inc. had not returned the backhoe. (5days *$250) Salaries earned by employees amounted to $1,500 since the last payroll date (Sept 26th). The Camelots have consulted with their independent accountant, Woody Cheatum (a senior partner at the firm of Dewey, Cheatum and Howe P.C.) and he advised them that they are likely subject to a combined local, state, & federal tax rate of 40% The taxes will be paid by December 15. Sept 30, Year 2 Instructions 1- Journalize ( in good form ) the above transactions, 2- Post to ledger accounts. 3. Prepare adjusting and closing entries and post to ledger accounts. 4. Prepare an income statement and a statement of retained earnings for the month of Sept, and a balance sheet as of Sept 30, Adjusting Entries Date Sept 30, Year 2 Sept 30, Year 2 Sept 30, Year 2 Transaction or Event The rent paid to Liacouras Agency was for 3 months. Interest accrued on the note payable was $1,000 at the end of the month Rental equipment is being depreciated over 15 years. The Camelots have chosen to use the straight-line method of depreciation. At the end of the month supplies worth $1,250 were on hand. Sept 30, Year 2 Sept 30, Year 2 Sept 30, Year 2 Sept 30, Year 2 During the month, Digger O'Dell had used $6,000 of rental equipment. By the end of the month, Landscrapers Inc. had not returned the backhoe. (5days *$250) Salaries earned by employees amounted to $1,500 since the last payroll date (Sept 26th). The Camelots have consulted with their independent accountant, Woody Cheatum (a senior partner at the firm of Dewey, Cheatum and Howe P.C.) and he advised them that they are likely subject to a combined local, state, & federal tax rate of 40% The taxes will be paid by December 15. Sept 30, Year 2 Instructions 1- Journalize ( in good form ) the above transactions, 2- Post to ledger accounts. 3. Prepare adjusting and closing entries and post to ledger accounts. 4. Prepare an income statement and a statement of retained earnings for the month of Sept, and a balance sheet as of Sept 30

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