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JHJ CAR RENTAL COMPANY

2014

CHART OF ACCOUNTS

• Accounts Receivable

• Supplies

• Prepaid Insurance

• Accumulated Depreciation-Auto

• Accounts Payable

• Accrued Wages Payable

• Unearned Rental Revenue

• Notes Payable

• JHJ Capital

• JHJ Drawings

• Car Rental Revenue

• Salaries Expense

• Rental Expense

• Advertising Expense

• Interest Expense

• Insurance Expense

• Supplies Expense

• Depreciation Expense

2014 Transactions

1. Opened a business account and deposited $200,000 into Chase Bank

2. Purchased supplies on account for $10,000.

3. Purchased 4 autos for $160,000 paying $40,000 down and signing a note payable for the balance.

4. Paid rent expense of $30,000

5. Paid advertising expense of $5,000

6. Received in cash car rental revenue of $250,000 from individual customers

7. Billed corporate customers for $50,000 in car rental revenue earned but not received

8. Paid salaries of 60,000.

9. Paid 30,000 for a three year insurance policy

10. Collected $30,000 from corporate credit customers

11. Paid $6000 on accounts payable

12. Paid principal of $ $40,000 and interest of $4,000 on note payable

13. Supplies on hand at the end of the period was $3,000

14. Autos are depreciated utilizing the straight line method over a 4 year life with salvage value expected to be zero at the end of four years

15. Record expiration of one year of insurance

16. Salaries accrued but unpaid at the end of the year totaled $12,000.

REQUIRED:

1. Prepare journal entries

2. Post to ledger

3. Prepare trial balance

4. Prepare income statement

5. Prepare statement of owners equity

6. Prepare balance sheet

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