Question: Adjustments and closing process-basic entries Selected ledger accounts used by Speedy Truck Rentals, Inc., are listed along with identifying numbers. Following this list of account

Adjustments and closing process-basic entries

Selected ledger accounts used by Speedy Truck Rentals, Inc., are listed along with identifying numbers. Following this list of account numbers and titles in a series of transactions, you are required to indicate the proper accounts to be debited and credited for each transaction.

Adjustments and closing process-basic entries Selected ledger accounts used by Speedy Truck

Rentals, Inc., are listed along with identifying numbers. Following this list of

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1 2. 3 4 5 6 Cash Accounts Receivable Office Supplies Unexpired Insurance Trucks Accumulated Depr. Trucks Accounts Payable 22 23 24 25 31 32 33 35 Notes Payable Dividends Payable Income Taxes Pay. Unearned Revenue Capital Stock Retained Earnings Dividends Income Summary 41 51 52 53 54 55 Truck Rental Revenue Advertising Expense Office Supplies Expense Rent Expense Insurance Expense Depreciation Expense: Trucks Income Taxes Expense 21 56 Account(s) Accounts(3) Debited Credited 53 1 c) Transactions Example: Paid rent on the building for the current period. Trucks are purchased by making a 30% cash down payment and financing the rest for 5 years. b) Fee is received in advance, for rental of truck for a future period. Purchased a large quantity of office supplies on credit Bought a three-year insurance policy and paid in full e) Declared a dividend to be paid in 60 days. f) Depreciation on trucks is recorded. Adjusting entry is made to record liability to Daily News for advertising done this period; payment is due next month. h) Adjusting entry is made to record truck rentals eamed but not yet received or recorded. 1) Some portion of the truck rentals previously received in advance have now been earned. 1) Made an adjusting for office supplies used during this period Made an adjusting entry for the portion of the insurance premium which had expired. 1) Made an adjusting entry to accrue income taxes expense at the end of a profitable period. m) Closed the revenue account at the end of the period. Closed the Income Summary account at the end of a profitable period 0) Closed the Dividends account at the end of the period. k) n)

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