Accouting homework due in 5 hours !!

MID-TERM STUDY PROBLEM

YEAR 1

JHJ Rental Car Company was stated in Year 1 and had the following transactions:

1. The owners invested $200,000 to start the company

2. Purchased supplies on account in the amount of $15,000

3. Purchased autos for $400,000 paying $100,000 down and signing note for the balance

4. Cash car rental revenue received $400,000

5. Salary expenses paid $150,000

6. Rental expenses paid $25,000

7. Corporate sales on account $50,000

8. Payment on note principal of $30,000 plus interest of $10,000

9. Paid dividends of $10,000

10. Ending supplies on hand, $5,000

11. Accrued wages at end of year were $15,000

12. Collection of account receivables $40,000

Required:

1. Journalize each entry indicating journal entry type

2. Set up required T-accounts and post to the ledger

3. Prepare trial balance

4. Prepare income statement

5. Prepare statement of retained earnings

6. Prepare balance sheet

7. Prepare and post closing entries