On September 1, 2016, Anthony Ferrara organized a business called Friend With A Toolbox for the...

    

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On September 1, 2016, Anthony Ferrara organized a business called Friend With A Toolbox 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-It, an equipment rental company that was going out of business. Friend With A Toolbox uses the following chart of accounts: Anthony Ferrara, Capital Anthony Ferrara, Drawings Income Summary Rental Fees Earned Depreciation Expense: Rental Equipment Interest Expense Maintenance Expense Office Supplies Expense Rent Expense Cash Accounts Receivable Prepaid Rent Office Supplies Rental Equipment- Accumulated Depreciation: Rental Equipment Notes Payable Accounts Payable Interest Payable Salaries Payable Unearned Rental Fees 101 104 106 108 110 125 220 222 225 227 228 Salaries Expense Utilities Expense September 1 Anthony Ferrara deposited $100,000 cash in a bank account in the name of the business. Friend With A Toolbox. (Opening Entry). 320 235 334 340 450 560 561 562 563 564 565 566 for rent 1 Paid $9,000 to Shapiro Realty as three months' advance rent on the rental yard and office formerly occupied by Rent-It. 1 Purchased for $180,000 all the equipment formerly owned by Rent-It. Paid $70,000 cash and issued a one-year note payable for $110,000. September 1 Anthony Ferrara deposited $100,000 cash in a bank account in the name of the business. Friend With A Toolbox. (Opening Entry). 1 1 4 for rent Paid $9,000 to Shapiro Realty as three months' advance rent on the rental yard and office formerly occupied by Rent-It. Purchased for $180,000 all the equipment formerly owned by Rent-It. Paid $70,000 cash and issued a one-year note payable for $110,000. Race. Payable cash *For adjustments afterwards - not for initial journalizing: Adjust Part I - Note Payable has interest at the annual rate of 9%. Interest Principal (the amount borrowed) x rate 0.09 x Time (1 year). Remember when you calculate interest you only need it for one month. Adjust Part 2- This rental equipment is estimated to have a 10-year useful life. There is no salvage value (0). -payable Purchased office supplies on account from Modern Office Co., $1,630. Payment is due in 30 days. (These supplies are expected to last for several months.) 8 Received $10,000 cash from McBryan in advance, equipment rental. (Credit Unearned Rental Fees). = 12 Paid salaries for the first two weeks in September, $3,600. O = 6100 cash = $53000 -C 15 Excluding the McBryan advance, equipment rental fees earned during the first 15 days of September amounted to $6,100, of which $5,300 was received in cash and $800 was an account receivable. 17 Purchased on account from Earth Movers, Inc., $340 in parts needed to repair a rental tractor. Payment is due in 10 days. Repair= OF 23 Collected $210 of the accounts receivable recorded on September 15. receives 26. Paid biweekly salaries, $3,600. Ot & Cash cr 27. Paid the accounts payable to Earth Movers, Inc., 340. Cash 28. Anthony Ferrara, the owner, withdrew $2,000 cash from the business to pay the rent on his personal residence. 30 Received a bill for utilities expense for the month of September, $270. Payment is due in 30 days. no cash invorud 30 Cash received from equipment rental during the second half of September, $6,450. received cash from ranting The information available September 30 is as follows: > Adjust for prepaid rent that you paid on September 1, 2022. (You have used it for 1 month). > Office supplies on hand are estimated at $1,100. The $4,840 of the advance payment from McBryan Construction Co. has been earned. *Opposite of moving it into unearned revenue* > Salaries earned by employees since the last payroll are $900. Interest from Dainabl > Interest from Notes Payable to reflect 1 month of interest. Depreciation for the equipment that you bought from Rent it. Keep in mind you only need to show it for 1 month.. Step 1- Journalize the transactions. Step 2 Post to the ledger accounts. Set up a ledger account for each of the accounts. . Step 3- Prepare a 10-column worksheet. (6 adjusting entries need to be made.) Step 4 - Prepare an income statement and a statement of financial position (classified balance sheet). Step 5-Prepare the adjusting and closing entries. (journalize and post) Sep 6-Prepare a post-closing trial balance as of September 30. Friend with a Toolbox Cash Accounts Receivable Prepaid Rent Office Supplies Rental Equipment Notes Payable Accounts Payable Interest Payable A. Ferrara, Capital A. Ferrara, Drawings Rental Fees Earned Maintenance Expense Salaries Expense Utilities Expense Unearned Rental Fees Trial Balance 33,420 590 9,000 1,630 180,000 2,000 340 7,200 270 234,450 110,000 1,900 100,000 12,550 10,000 234,450 On September 1, 2016, Anthony Ferrara organized a business called Friend With A Toolbox 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-It, an equipment rental company that was going out of business. Friend With A Toolbox uses the following chart of accounts: Anthony Ferrara, Capital Anthony Ferrara, Drawings Income Summary Rental Fees Earned Depreciation Expense: Rental Equipment Interest Expense Maintenance Expense Office Supplies Expense Rent Expense Cash Accounts Receivable Prepaid Rent Office Supplies Rental Equipment- Accumulated Depreciation: Rental Equipment Notes Payable Accounts Payable Interest Payable Salaries Payable Unearned Rental Fees 101 104 106 108 110 125 220 222 225 227 228 Salaries Expense Utilities Expense September 1 Anthony Ferrara deposited $100,000 cash in a bank account in the name of the business. Friend With A Toolbox. (Opening Entry). 320 235 334 340 450 560 561 562 563 564 565 566 for rent 1 Paid $9,000 to Shapiro Realty as three months' advance rent on the rental yard and office formerly occupied by Rent-It. 1 Purchased for $180,000 all the equipment formerly owned by Rent-It. Paid $70,000 cash and issued a one-year note payable for $110,000. September 1 Anthony Ferrara deposited $100,000 cash in a bank account in the name of the business. Friend With A Toolbox. (Opening Entry). 1 1 4 for rent Paid $9,000 to Shapiro Realty as three months' advance rent on the rental yard and office formerly occupied by Rent-It. Purchased for $180,000 all the equipment formerly owned by Rent-It. Paid $70,000 cash and issued a one-year note payable for $110,000. Race. Payable cash *For adjustments afterwards - not for initial journalizing: Adjust Part I - Note Payable has interest at the annual rate of 9%. Interest Principal (the amount borrowed) x rate 0.09 x Time (1 year). Remember when you calculate interest you only need it for one month. Adjust Part 2- This rental equipment is estimated to have a 10-year useful life. There is no salvage value (0). -payable Purchased office supplies on account from Modern Office Co., $1,630. Payment is due in 30 days. (These supplies are expected to last for several months.) 8 Received $10,000 cash from McBryan in advance, equipment rental. (Credit Unearned Rental Fees). = 12 Paid salaries for the first two weeks in September, $3,600. O = 6100 cash = $53000 -C 15 Excluding the McBryan advance, equipment rental fees earned during the first 15 days of September amounted to $6,100, of which $5,300 was received in cash and $800 was an account receivable. 17 Purchased on account from Earth Movers, Inc., $340 in parts needed to repair a rental tractor. Payment is due in 10 days. Repair= OF 23 Collected $210 of the accounts receivable recorded on September 15. receives 26. Paid biweekly salaries, $3,600. Ot & Cash cr 27. Paid the accounts payable to Earth Movers, Inc., 340. Cash 28. Anthony Ferrara, the owner, withdrew $2,000 cash from the business to pay the rent on his personal residence. 30 Received a bill for utilities expense for the month of September, $270. Payment is due in 30 days. no cash invorud 30 Cash received from equipment rental during the second half of September, $6,450. received cash from ranting The information available September 30 is as follows: > Adjust for prepaid rent that you paid on September 1, 2022. (You have used it for 1 month). > Office supplies on hand are estimated at $1,100. The $4,840 of the advance payment from McBryan Construction Co. has been earned. *Opposite of moving it into unearned revenue* > Salaries earned by employees since the last payroll are $900. Interest from Dainabl > Interest from Notes Payable to reflect 1 month of interest. Depreciation for the equipment that you bought from Rent it. Keep in mind you only need to show it for 1 month.. Step 1- Journalize the transactions. Step 2 Post to the ledger accounts. Set up a ledger account for each of the accounts. . Step 3- Prepare a 10-column worksheet. (6 adjusting entries need to be made.) Step 4 - Prepare an income statement and a statement of financial position (classified balance sheet). Step 5-Prepare the adjusting and closing entries. (journalize and post) Sep 6-Prepare a post-closing trial balance as of September 30. Friend with a Toolbox Cash Accounts Receivable Prepaid Rent Office Supplies Rental Equipment Notes Payable Accounts Payable Interest Payable A. Ferrara, Capital A. Ferrara, Drawings Rental Fees Earned Maintenance Expense Salaries Expense Utilities Expense Unearned Rental Fees Trial Balance 33,420 590 9,000 1,630 180,000 2,000 340 7,200 270 234,450 110,000 1,900 100,000 12,550 10,000 234,450

Answer rating: 100% (QA)

Based on the information provided and the instructions given it seems youre asked to prepare adjusting entries post them to the ledger accounts and th... View the full answer