ACCOUNTINGAdeline Stein owns a service business called Stein Express, which uses the following accounts:
$$
\begin{matrix}\text{Cash} & \text{Adeline Stein, Capital}\\\text{Supplies} & \text{Adeline Stein, Drawing}\\\text{Prepaid Insurance} & \text{Advertising Expense}\\\text{Accts. Rec.—M. Bien} & \text{Rent Expense}\\
\text{Accts. Pay.—Rim Supply} & \text{Sales }\\\text{Accts. Pay.— Parks Co.} & \text{Miscellaneous Expense}\\\text{Repair Expense} & \text{Utilities Expense}\\\end{matrix}
$$
Transactions:
Aug. 1. Received cash from owner as an investment, $8,750.00. R1.
2. Paid cash for supplies,$500.00. C1.
3. Paid cash for rent, $300.00. C2.
4. Bought supplies on account from Rim Supply,$1,200.00. M1.
5. Paid cash for electric bill, $250.00. C3.
8. Paid cash on account to Rim Supply,$700.00. C4.
8. Received cash from sales, $425.00. T8.
8. Sold services on account to M. Bien,$125.00. S1.
9. Paid cash for insurance, $1,900.00. C5.
10. Paid cash for miscellaneous expense,$27.00. C6.
10. Received cash from sales, $297.00. T10.
11. Paid cash for supplies,$770.00. C7.
11. Received cash from sales, $493.00. T11.
12. Received cash from sales,$294.00. T12.
15. Paid cash to owner for personal use, $125.00. C8.
15. Received cash from sales,$275.00. T15.
16. Paid cash for repairs, $88.00. C9.
17. Received cash on account from M. Bien,$125.00. R2.
17. Bought supplies on account from Parks Co., $345.00. M2.
17. Received cash from sales,$200.00. T17.
18. Received cash from sales, $600.00. T18.
19. Received cash from sales,$175.00. T19.
22. Bought supplies on account from Parks Co., $80.00. M3.
22. Received cash from sales,$450.00. T22.
23. Paid cash for telephone bill, $50.00. C10.
23. Sold services on account to M. Bien,$425.00. S2.
24. Paid cash for advertising, $80.00. C11.
24. Received cash from sales,$250.00. T24.
25. Received cash from sales, $325.00. T25.
26. Paid cash for supplies,$45.00. C12.
26. Received cash from sales, $310.00. T26.
29. Received cash on account from M. Bien,$425.00. R3.
30. Paid cash to owner for personal use, $150.00. C13.
31. Received cash from sales,$450.00. T31.
Instructions:
1. Use page 1 of the journal given in the Recycling Problem Working Papers. Journalize the transactions for August 1 through August 19 of the current year. Source documents are abbreviated as follows: check, C; memorandum, M; receipt, R; sales invoice, S; calculator tape, T.
2. Prove and rule page 1 of the journal. Carry the column totals forward to page 2 of the journal.
3. Use page 2 of the journal to journalize the transactions for the remainder of August.
4. Prove page 2 of the journal.
5. Prove cash. The beginning cash balance on August 1 is zero. The balance on the next unused check stub is $8,859.00.
6. Rule page 2 of the journal. ACCOUNTINGOn January 1, 2018, White Water issues $600,000 of 7%bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 6%, the bonds will issue at$644,632. 1. Complete the first three rows of an amortization table. 2. Record the bond issue on January 1, 2018, and the first two semiannual interest payments on June 30, 2018, and December 31, 2018. ACCOUNTINGThe general ledger of Jackrabbit Rentals at January 1, 2018, includes the following account balances:
$$
\begin{matrix}
\text{Accounts} & \text{Debits} & \text{Credits}\\
\text{Cash} & \text{\$41,500} & \text{ }\\
\text{Accounts Receivable} & \text{$25,700$} & \text{ }\\
\text{Land} & \text{$110,800$} & \text{ }\\
\text{Accounts Payable} & \text{ } & \text{\$15,300}\\
\text{Notes Payable} & \text{ } & \text{$30,000$}\\
\text{Common Stock} & \text{ } & \text{$100,000$}\\
\text{Retained Earnings} & \text{\_\_\_\_\_} & \underline{32,700}\\
\text{Totals} & \underline{\underline{\$ 178,000}} & \underline{\underline{\$ 178,000}}\\
\end{matrix}
$$
The following is a summary of the transactions for the year:
$$
\begin{matrix}
\text{a. January 12} & \text{Provide services to customers on account, \$62,400.}\\
\text{b. February 25} & \text{Provide services to customers for cash, \$75,300.}\\
\text{c. March 19} & \text{Collect on accounts receivable, \$45,700.}\\
\text{d. April 30} & \text{Issue shares of common stock in exchange for \$30,000 cash.}\\
\text{e. June 16} & \text{Purchase supplies on account, \$12,100.}\\
\text{f. July 7} & \text{Pay on accounts payable, \$11,300.}\\
\text{g. September 30} & \text{Pay salaries for employee work in the current year, \$64,200.}\\
\text{h. November 22} & \text{Pay advertising for the current year, \$22,500.}\\
\text{i. December 30} & \text{Pay \$2,900 cash dividends to stockholders.}\\
\end{matrix}
$$
1. Set up the necessary I-accounts and enter the beginning balances from the trial balance. In addition to the accounts shown, the company also has accounts for Supplies, Salaries Payable, Interest Payable, Dividends, Service Revenue, Salaries Expense, Advertising Expense, Interest Expense, and Supplies Expense. 2. Record each of the summary transactions listed above. 3. Post the transactions to the accounts. 4. Prepare an unadjusted trial balance. 5. Record adjusting entries. Accrued interest on the notes payable at year-end amounted to $2,500. Accrued salaries at year-end amounted to$1,500. Supplies remaining on hand at the end of the year equal $2,300. 6. Post adjusting entries. 7. Prepare an adjusted trial balance. 8. Prepare an income statement for 2018 and a classified balance sheet as of December 31, 2018. 9. Record closing entries. 10. Post closing entries. 11. Prepare a post-closing trial balance.