[paris102]

need help on these adjusting entries.


1. The advance payment of rent on Sept 1st covered a period of three months. Amount 9,000. =DR: PREPAID RENT FOR $9000.00 CR: CASH $9,000

2. Interest accured on the note payable to rent-it amounted to $825.00 at Sept 30th.=DR: CASH $825.00 CR: NOTES PAYABLE $825.00
3.The rental equipment is being depreciated by the streight-line methond over a period 10 years?=DR;DEP EXPENSE-EQUIPMENT $18,000.00 CR: ACCUM DEP $18,000
4. Office supplies on hand at Sept 30 are estimated at $1,100.=DR: SUPPLIES EXPENSE $530.00 CR: SUPPLIES: $530
5. During Sept, the comnay earned $4,840.00 of the renal fees paid in advance by Mcbryan Co. on Sept 8th=DR: ACCOUNTS RECEIVABLE $4840.00 CR:SERVICE REVENUE $4840.00
6. As of Sept 30th Tony's rentals has earned five days rent on the backhoe rented to Mission Landscating on Sept 25th. $100.00 per day?? I DO NOT KNOW

7. Salaries earned by employees since the last payroll date Sept 26 amounted to $900.00 at month end. =DR:SALARY EXPENSE $900.00 CR: SALARIES PAYABLE $900.00

8. IT is esimated that Tony's rental is subject to a combined federal and state income tax rate of 40% of income before income taxes.. These taxes will be payable on Dec 15th. UNKNOWN


:eek:

[CaptainForest]

What do YOU think the answers are.

Tell us, then we will assist you.

[paris102]

1.)Credit Prepaid Rent $9,000
2.) Creidt Interest payment $825.00
3.) Not sure
4.) Credit Office supplies for $530.00
5.) Accounts Receivable 500.00
6.) Salaries Payable $900.00
7.) unknown

[paris102]

need help on these adjusting entries.


1. The advance payment of rent on Sept 1st covered a period of three months. Amount 9,000. =DR: PREPAID RENT FOR $9000.00 CR: CASH $9,000

2. Interest accured on the note payable to rent-it amounted to $825.00 at Sept 30th.=DR: CASH $825.00 CR: NOTES PAYABLE $825.00
3.The rental equipment is being depreciated by the streight-line methond over a period 10 years?=DR;DEP EXPENSE-EQUIPMENT $18,000.00 CR: ACCUM DEP $18,000
4. Office supplies on hand at Sept 30 are estimated at $1,100.=DR: SUPPLIES EXPENSE $530.00 CR: SUPPLIES: $530
5. During Sept, the comnay earned $4,840.00 of the renal fees paid in advance by Mcbryan Co. on Sept 8th=DR: ACCOUNTS RECEIVABLE $4840.00 CR:SERVICE REVENUE $4840.00
6. As of Sept 30th Tony's rentals has earned five days rent on the backhoe rented to Mission Landscating on Sept 25th. $100.00 per day?? I DO NOT KNOW

7. Salaries earned by employees since the last payroll date Sept 26 amounted to $900.00 at month end. =DR:SALARY EXPENSE $900.00 CR: SALARIES PAYABLE $900.00

8. IT is esimated that Tony's rental is subject to a combined federal and state income tax rate of 40% of income before income taxes.. These taxes will be payable on Dec 15th. UNKNOWN


:eek:[/QUOTE]

[CaptainForest]

1) Correct

2)
Dr. Interest Expense 825
Cr. Interest Payable 825

3) You have not given any amounts to indicate if 18,000 is the correct amount. Assuming that it is, your JE is correct.

4) This JE is correct ASSUMING that the balance in your supplies account was 1,630

5)
Dr. Unearned Revenue 4,848
Cr. Service Revenue 4,848

6)
Dr. Accounts Receivable most likely 500
Cr. Rental Revenue 500 (100 x 5)

7) Correct

8) You will have to calculate Net Income first, based on these adjustments.

[paris102]

Captian Forest,



#3. the total amount of the rental Equipment is $180,000.00
#4 yes the balance was $1,630.00
#8 will calculate net income first, then multiply by 40%??

Thanks for the reasurance/help.

Paris

[CaptainForest]

3) Assuming no residual value on the equipment, deprecation would be 18,000

8)
What you will do is make all these adjustments to your net income.

Then you multiply that by 40%, and that is the income tax expense and payable to the government. Then subtract that to get your final net income after taxes.