Assignment
JHJ RENTAL CAR COMPANY
COMPREHENSIVE JOURNAL ENTRY
STUDY PROBLEM
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 Trial Balance.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.