For the December 2015 period, the Ranger Company has thefollowing transactions:
Collected accounts receivable totaling $80,000 in cash.
Sold $95,000 worth of services on credit.
Sold $64,000 worth of services for cash.
Expensed $24,000 of prepaid sales/administrative expenses.
Paid building insurance costs totaling $6,600. The insurance waspaid on December 1 and covers the period from December 1, 2015through November 30, 2016.
Paid Winter taxes totaling $24,000 on December 15. The Wintertaxes cover the period from December 1, 2015 through November 30,2016.
Paid accounts payable totaling $11,500.
Wrote off an account receivable totaling $2,000 as bad debt. Thecompany did not establish a reserve for doubtful accounts.
Paid cash wages to employees totaling $75,000.
Office operating expenses totaled $15,000. These expenses wereall paid with cash.
Depreciation expense was determined to be $25,000 for theperiod.
Issued cash dividends of $50,000.
The Balance Sheet accounts for the Ranger Company as of thestart of the period are as follows:
Cash $ 120,000
Gross AccountsReceivable 100,000
Prepaid Expenses (inc.ins./tax) 24,000
Land 1,200,000
Plant, Property, Equipment (PPE) 750,000
Accumulated Depreciation on PPE 525,000
AccountsPayable 50,000
NotesPayable 200,000
Capital (includingpaid-in) 980,000
RetainedEarnings 439,000
Using the information above, please complete the following:
1.Develop general journal entries for the transactionsabove.
2.Post the journal entries to their appropriate general ledgeraccounts (use t-account format)
3.Close-out the temporary accounts
4.Prepare a Balance Sheet dated December 31, 2015 and an IncomeStatement that covers the December 2015period
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