Backhoe Rental

Posts Tagged ‘John’

JACKSON EQUIPMENT RENTAL COMPANY

On August 1, 2006, Jackson Equipment Rental Company was formed by Sam and John Jackson. Jackson’ Chart of Accounts appears below:

CashIncome Taxes Payable
Accounts ReceivableIncome Tax Expense
Prepaid Rent
Unexpired InsuranceSam Jackson, Capital
Office Supplies InventoryIncome Summary
Rental Equipment InventoryEarned Rental Fees
Accumulated Depreciation:Salaries Expense
Rental EquipmentMaintenance Expense
Notes PayableUtilities Expense
Accounts PayableRent Expense
Interest PayableOffice Supplies Expense
Salaries PayableDepreciation Expense
Sam Jackson, DrawingInterest Expense
Unearned Rental Fees

Jackson closes its accounts and prepares financial statements monthly. The following were the company’s August transactions:

1.8/1Sam Jackson contributed $100,000 cash to start the business.
2.8/1Purchased all of the rental equipment of a recently closed equipment rental
equipment company for $180,000. Paid $70,000 cash and signed a one-year note
payable to the owner, Ralph Bass, for $110,000.
3. 8/1Paid 3 months rent in advance of $9,000 for the building and yard to Sharks
Realty.
4. 8/4Purchased $2,000 office supplies on account from Sayes Office Supply. Payment
is due in 30 days. These supplies are expected to last 4 months.
5.8/8McCumber Company paid $20,000 cash as an advance payment on rental
equipment.
6. 8/12 Paid Salaries for the first two weeks of August: $4,100.
7.8/15Earned equipment rental fees for the first 15 days of August of $9,000. A total
of $8,000 of this amount was received in cash. This does not include the
McCumber account.
8.8/17Purchased $500 of payloader repair parts from Davis Tractor Company. Parts
were needed to repair a payloader. Payment is due in 10 days.
9. 8/23Received a payment of $300 on the amount due from August 15.
10.8/26Rented a backhoe to Jacobs Plumbing company at $100 per day. Payment
is due when the backhoe is returned in 2 weeks.
11.8/26Paid bi-weekly salaries of $4,100.
12.8/27Paid the amount owed to Davis Tractor Company.
13. 8/28 Sam Jackson withdrew $4,000 for his personal use.

JACKSON EQUIPMENT RENTAL COMPANY

14.8/29Jacobs Plumbing left the rented backhoe inside a locked fence at a construction
site of the prime contractor Ellis Construction. A 12 year old boy climbed the
fence and broke his leg playing on the backhoe. Jackson, Jacobs and Ellis have
been sued for by the parents for $50,000. The extent of Jackson’s liability
cannot be reasonably determined.
15.8/29Jackson purchased a one year liability insurance policy for $2,700. The policy
period begins September 1.
16.8/30Received a $600 utility bill for August. Payment due in 30 days.
17.8/30Equipment rental fees earned the last half of the month totaled $10,000.
Received cash payments for the total.

The following is information needed to prepare the company’s adjusting entries at the end of August:

1.The advance rent payment on August 1 was for three months.
2.There was $800 of accrued interest in August on the note payable.
3.Rental equipment is depreciated over 10 years on a straight-line basis.
4.Office supplies on hand at August 31 total $1,100.
5.During August, Jackson earned $12,000 of the rental fees McCumber paid in advance on September 8.
6.At August 31, Jackson earned 5 days of rent on the backhoe rented to Jacobs Plumbing.
7.Salaries earned but not paid since the last payroll date amount to $1,000.
8.Jackson’s estimated tax rate is 40% of its income before income taxes. Taxes will be paid September 15.

Instructions:

a.Journalize the above transactions.
b.Post the transactions to ledger (T) accounts.
c.Prepare a 10 column worksheet for the month ended August 31.
d.Prepare the Adjusting entries on needed on August 31 and post them to T-Accounts and Spreadsheet.
e.Prepare the August Income Statement, Statement of Owner’s Equity, and
Balance Sheet.
f.Prepare closing entries for August.

Whether you are or have been involved in construction job site, you mostly have experienced owning a backhoe or renting one. There are times where the management would opt of accomplishing the work to rather prefer backhoe rentals than purchasing brand new one. After all, it is not everyday that it would really be needed in such an industry because other available equipments sometimes will just do.

However when you does find renting to be a solution to finish a task without expensing much for the purchase, you have to consider various things first. First one of which includes: Price range. The basic knowledge about it is that as long as you know the right usage of the equipment, it will lessen for the hour rentals. Usually, it would only take 100 dollars in a day so that means 800 for week. Of course this would still depend to the area where you will be using.

The capacity should be determined as for what specific size you will need. There should already be data about the depth of the digging, about the loader dump and the weight needed before you do visit the agency for renting.

In case you work with a group, which most certainly is, decide whether you wanted to use the branded one. Those that included as trusted in the industry since then are JCB, Kubota, Kat, New Holland, Deere and John. They are the leading one. Several are already in the American Rental Association. Take note that those backhoe are really in different sizes in the first place. So don’t just assume if you’re a newbie in the field going there to rent without the idea about it.

Good tip means shop around. Look for yellow pages, friend recommendations and of course the Internet. They are all such a good help for you. Then when you do found the machine as you think suitable for the need check and see for yourself before leaving the rental place.

If possible, you can ask for them to just deliver it to the location you would give them. At least some crew could still do inspection. Through that, you are assured that the equipment does work. Also you wouldn’t want blaming to happen when the time you return that. So it’s best to let them do the delivery to the site.

The economy is indeed in crunch. We always wanted of making sure of our investment. As much, backhoe rentals should minimize the cost as possible. This is the best available choice than making outright purchase. That’s really an unnecessary thing to do.

Whether you are or have been involved in construction job site, you mostly have experienced owning a backhoe or renting one. There are times where the management would opt of accomplishing the work to rather prefer backhoe rentals than purchasing brand new one. After all, it is not everyday that it would really be needed in such an industry because other available equipments sometimes will just do.

However when you does find renting to be a solution to finish a task without expensing much for the purchase, you have to consider various things first. First one of which includes: Price range. The basic knowledge about it is that as long as you know the right usage of the equipment, it will lessen for the hour rentals. Usually, it would only take 100 dollars in a day so that means 800 for week. Of course this would still depend to the area where you will be using.

The capacity should be determined as for what specific size you will need. There should already be data about the depth of the digging, about the loader dump and the weight needed before you do visit the agency for renting.

In case you work with a group, which most certainly is, decide whether you wanted to use the branded one. Those that included as trusted in the industry since then are JCB, Kubota, Kat, New Holland, Deere and John. They are the leading one. Several are already in the American Rental Association. Take note that those backhoe are really in different sizes in the first place. So don’t just assume if you’re a newbie in the field going there to rent without the idea about it.

Good tip means shop around. Look for yellow pages, friend recommendations and of course the Internet. They are all such a good help for you. Then when you do found the machine as you think suitable for the need check and see for yourself before leaving the rental place.

If possible, you can ask for them to just deliver it to the location you would give them. At least some crew could still do inspection. Through that, you are assured that the equipment does work. Also you wouldn’t want blaming to happen when the time you return that. So it’s best to let them do the delivery to the site.

The economy is indeed in crunch. We always wanted of making sure of our investment. As much, backhoe rentals should minimize the cost as possible. This is the best available choice than making outright purchase. That’s really an unnecessary thing to do.

The Tips For Backhoe Rentals & Selection – Whether You Are or Have …