Smart Rentals Ltd

General Journal
30 June 2020

Date Account Name Post Ref Debit Credit

2020
30 June Insurance Expense 512 $ 2,700.00
Prepaid Insurance 112 $ 2,700.00
To record used part of prepaid insurance

30 June Supplies Expense 530 $ 4,200.00

Supplies 113 $ 4,200.00
To record supplies used

30 June Depreciation Expense 506 $ 9,900.00

Accumulated Depreciation-Building 123 $ 5,400.00
Accumulated Depreciation-Furniture 131 $ 4,500.00
To record depreciation expense for three months

30 June Interest Expense 515 $ 3,150.00

Interest Payable 215 $ 3,150.00
To record accrued interest for 3 months

30 June Rent Revenue Received in Advance 212 $9,000.00

Rent Revenue 400 $ 9,000.00
To record revenue earned in June

30 June Salaries Expense 525 $ 1,800.00

Salaries Payable 214 $ 1,800.00
To record salaries accrued in June
 Smart Rentals Ltd
Statement of Profit of Loss
For the three month ended 30 June 2020

Revenue:
Rent Revenue $64,200.00
Less: Expenses:
Advertising Expense $3,000.00
Depreciation Expense $9,900.00
Electricity Expense $6,000.00
Insurance Expense $2,700.00
Interest Expense $3,150.00
Salaries Expense $19,800.00
Supplies Expense $4,200.00 ($48,750.00)
Gross Profit $15,450.00

Smart Rentals Ltd

Calculation of Retained Earnings
For the three month ended 30 June 2020

Retained Earnings – 1 April 2020 $0.00

Add: Profit April-June 2020 $15,450.00
Retained Earnings – 30 June 2020 $15,450.00
 Smart Rentals Ltd
Statement of Financial Position
As of ended 30 June 2020

Assets:
Current Assets:
Cash $15,000.00
Prepaid Insurance $8,100.00
Supplies $7,200.00 $30,300.00
Non-current Assets:
Land $90,000.00
Building $420,000.00
Less: Accumulated Depreciation – Building ($5,400.00)
Furniture $100,800.00
Less: Accumulated Depreciation – Furniture ($4,500.00) $600,900.00
Total Assets: $631,200.00

Liabilities and Equity:

Current Liabilities:
Accounts Payable $28,200.00
Rent Revenue Received in Advance $12,600.00
Salaries Payable $1,800.00
Interest Payable $3,150.00 $45,750.00
Non-current Liabilities:
Mortgage Payable $210,000.00
Total Liabilities: $255,750.00

Equity:
Share Capital $360,000.00
Retained Earnings $15,450.00
Total Equity $375,450.00

Total Liabilities & Equity: $631,200.00