a. & d.
D
e
bit
C
re
dit
B
a
l
ance
D
e
bit
C
re
dit
B
a
l
ance
D
e
bit
C
re
dit
B
a
l
ance
D
e
bit
C
re
dit
B
a
l
ance
Date
Date
Explanation Office Supplies Expense
Explanation
Date Explanation
Rent Expense
Date
Explanation
COMPREHENSIVE PROBLEM 1
SUSQUEHANNA EQUIPMENT RENTALS
Maintenance Expense
Utilities Expense
(
cont
i
nue
d)
a. & d.
D
e
bit
C
re
dit
B
a
l
ance
D
e
bit
C
re
dit
B
a
l
ance
D
bit
C
dit
B
l
COMPREHENSIVE PROBLEM 1
SUSQUEHANNA EQUIPMENT RENTALS
Depreciation Expense
(
cont
i
nue
d)
Interest Expense
Date
Explanation
Date Explanation
SUSQUEHANNA EQUIPMENT RENTALS
Worksheet
December 31, 2015
a.
Debit Credit Debit Credit Debit Credit Debit Credit
C
$
$
$
$
$
Off
$
$
$
Accounts payable 1,700 1,700 1,700
Unearned rental
f
ees 8,000 (e) 3,700 4,300 4,300
C
Accum. Dep.: rental equip. (c) 2,500 2,500 2,500
S
alaries payable (g) 1,400 1,400 1,400
Income taxes payable (h) 9,080 9,080 9,080
Income statement accounts:
Rental
f
ees earned 38,000 (e) 3,700 43,200 43,200
$
S
$
M
Utiliti
R
en
t
expense (a) 4
,
000 4,000 4
,
000
I
n
t
eres
t
expense (b) 500 500 500
D
eprec
i
a
ti
on expense (c) 2
,
500 2,500 2
,
500
Offi
I
* Adjustments
(a) December rent expense ($12,000 ÷ 3). (e) Portion of unearned revenue earned in December.
Debit Credit
Trial Balance
RENTALS (continued)
COMPREHENSIVE PROBLEM 1
Adjustments* Adjusted Trial Balance Income Statement Balance Sheet
SUSQUEHANNA EQUIPMENT
b.
Rental fees earned 43,200$
Income Statement
COMPREHENSIVE PROBLEM 1
SUSQUEHANNA EQUIPMENT RENTALS
(continued)
SUSQUEHANNA EQUIPMENT RENTALS
Revenue:
For the Year Ended December 31, 2015
Expenses
b.
65,000$
Assets
COMPREHENSIVE PROBLEM 1
SUSQUEHANNA EQUIPMENT RENTALS
SUSQUEHANNA EQUIPMENT RENTALS
Balance Sheet
December 31, 2015
(continued)
Cash
Dec 31 43
,
200
Income Summar
y
43
,
200
p
,
,
,
COMPREHENSIVE PROBLEM 1
SUSQUEHANNA EQUIPMENT RENTALS
(
cont
i
nue
d)
d.
2015
To close the revenue account.
(Closing Entries)
Rent Fees Earned
General Journal
,
f.
It does not appear that the company faces any immediate solvency problems. It did start with
$200,000 cash, but in its first transaction the company spent $140,000 on equipment, leaving
COMPREHENSIVE PROBLEM 1
SUSQUEHANNA EQUIPMENT RENTALS
(concluded)