k#2 On June 1 2010 HASF organized a business called friends with a truck for the...

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k#2 On June 1 2010 HASF organized a business called friends with a truck for the purpose of operating an equipment rental yard. The new business was able to begin operations immediately by purchasing the assets and taking over the location of rent all an equipment rental company that was going out of business The company closes accounts and prepares financial statements at the end of each month during June the company entered into the following transactions June 1 HASF deposited S150,000 cash in a bank account in the name of the business, Friend With A Truck. Purchased for $240,000 all the equipment formerly owned by Rent-All. Paid $100,000 cash and issued a one-year note payable for $140,000 Paid $100,000 to Morrison Realty as four months advance rent on the rental yard and office formerly occupied by Rent-All. received $12,000 cash as advance payment on equipment rental from McBryan Construction Company. (Credit Uneamed Rental Fees) Purchased office supplies on account from Newport Office Company, $1,850. Payment due in 30days. purchased on account from Foley Parts Distributor $290 in parts needed to repair a rental tractor. Payment is due in 10 days. Paid salaries for the first two weeks in June, $3,200. excluding the advance payment from the McBryan Construction Company, equipment rental fees earned during the first 15 days of June amounted to $8,900, of which $7,200 was received in cash. Paid the account payable to Foley Parts Distributor, $290. Collected $800 of the account receivable recorded on June 15. Rented a backhoe to Mission Landscaping at a price of $110 per day, to be paid when the backhoe is returned. Mission Landscaping expects to keep the backhoe June 1 June 1 June 3 June 5 June 9 June 12 June 15 June 18 June 19 June 23 for about two or three weeks. Paid biweekly salaries, $3,200. Anthony Ferrara withdrew $3,000 each from the business to make a mortgage payment for his personal residence. Equipment rental fees earned during the second half of June and received in cash amounted to $7,850. received a bill from Western Utilities for the month of June. $340. Payment is due in 30days. June 26 June 29 June 30 June 30 Required 1. Journalize the above transactions (04 marks) 2. Post to ledger accounts (04 marks ) 3. Prepare trial balance (02 marks ) 4. Prepare an income statement and balance sheet (8marks ) k#2 On June 1 2010 HASF organized a business called friends with a truck for the purpose of operating an equipment rental yard. The new business was able to begin operations immediately by purchasing the assets and taking over the location of rent all an equipment rental company that was going out of business The company closes accounts and prepares financial statements at the end of each month during June the company entered into the following transactions June 1 HASF deposited S150,000 cash in a bank account in the name of the business, Friend With A Truck. Purchased for $240,000 all the equipment formerly owned by Rent-All. Paid $100,000 cash and issued a one-year note payable for $140,000 Paid $100,000 to Morrison Realty as four months advance rent on the rental yard and office formerly occupied by Rent-All. received $12,000 cash as advance payment on equipment rental from McBryan Construction Company. (Credit Uneamed Rental Fees) Purchased office supplies on account from Newport Office Company, $1,850. Payment due in 30days. purchased on account from Foley Parts Distributor $290 in parts needed to repair a rental tractor. Payment is due in 10 days. Paid salaries for the first two weeks in June, $3,200. excluding the advance payment from the McBryan Construction Company, equipment rental fees earned during the first 15 days of June amounted to $8,900, of which $7,200 was received in cash. Paid the account payable to Foley Parts Distributor, $290. Collected $800 of the account receivable recorded on June 15. Rented a backhoe to Mission Landscaping at a price of $110 per day, to be paid when the backhoe is returned. Mission Landscaping expects to keep the backhoe June 1 June 1 June 3 June 5 June 9 June 12 June 15 June 18 June 19 June 23 for about two or three weeks. Paid biweekly salaries, $3,200. Anthony Ferrara withdrew $3,000 each from the business to make a mortgage payment for his personal residence. Equipment rental fees earned during the second half of June and received in cash amounted to $7,850. received a bill from Western Utilities for the month of June. $340. Payment is due in 30days. June 26 June 29 June 30 June 30 Required 1. Journalize the above transactions (04 marks) 2. Post to ledger accounts (04 marks ) 3. Prepare trial balance (02 marks ) 4. Prepare an income statement and balance sheet (8marks )

Answer rating: 100% (QA)

Journal Entries Date Account title explanation Debit Credit 01Jun Cash 250000 apital 250000 to recor... View the full answer