FINANCIAL TRANSACTIONS

JHJ RENTAL CAR COMPANY

COMPREHENSIVE JOURNAL ENTRY

STUDY PROBLEM 1-12

FINANCIAL TRANSACTIONS

· Invested $200,000 to start JHJ rental car company

· Paid cash of $10,000 for supplies

· Paid cash of $24,000 for two-year insurance policy

· Purchased equipment on account in the amount of $10,000

· Purchased $15,000 in supplies on account

· Paid advertising expense of $10,000

· Purchased ten autos for $30,000 each paying $50,000 down and signed a note for the balance

· Received cash car rental revenue $400,000

· Paid office salaries of $80,000

· Paid rent expense of $40,000

· Car rental revenue earned from corporate customers on account $100,000

· Paid on accounts payable $20,000

· Collection of cash from corporate customers $100,000

· Invested an additional $100,000 in the business

· Received cash car rental revenue $500,000

· Paid sales salaries of $300,000

· Car rental revenue earned from corporate customers $50.000

· Collection of cash from corporate customers

· Paid rent expense of $40,000

· Paid delivery expenses of $4,000

· Paid dividends of $5,000

· Purchased supplies on account $20,000

· Purchased supplies paying cash of $5,000

· Paid principal on note payable $40,000

· Paid interest expense on note payable $4,000

· Cash car rental revenue received $75,000

· Car rental revenue billed to corporate customers $125,000

· Collections from corporate customers $125,000

· Paid advertising expense $12,000

· Paid miscellaneous office expenses $2,000

· Invested additional $50,000 in the business

· Paid dividends of $10,000

· Purchased land for $200,000 paying $50,000 down and signed a note for balance

· Paid principal on note payable $50,000

· Paid interest on note payable $5,000

· Received cash care rental income of $150,000

· Billed corporate customers for car rental $250,000

· Collected car rental income from corporate customers $100,000

· Paid dividends $20,000

· Purchased supplies on account $15,000

REQUIRED:

Complete all Journal Entries, T-accounts, and the the Trial Balance.