View the step-by-step solution to:


On March 31, 2012 Easy Rental's Trial Balance is as


                       Debit             Credit

Cash                   $12,200

Prepaid Insurance.       $14,400

Supplies.               $2,800

Equipment.              $21,600

Accumulated Depreciation.                $5,400

Unearned Revenue.                       $9,600

Loan Payable.                          $20,000

Rent Revenue.                          $30,000

Salaries Expense.        $14,000

                       $65000.         $65000

The company closes their books monthly. An analysis of the accounts showed the following:

1. The equipment, purchased on January 1, 2011 is estimated to have a useful life of 4 years.

2. Two thirds of the unearned revenue is earned by the end of the month.

3. The loan payable has an interest rate of 6% which is paid monthly at the beginning of each month.

4. Supplies on hand totaled $850 on March 31.

5. The one year life insurance policy was purchased on March 1 for $14,400.

6.Income tax is estimated to be $2,200 for the month.


(A)Set up the T accounts and enter the beginning balances in the general ledger.

b) Prep the adjusting entries.

c) Post to T accounts and ďo an adjusted trial balance.

Top Answer

View the full answer
t accounts.JPG

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.


Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question