Question

After the success of the company’s first two months, Santana Rey continues to operate Business Solutions. The November 30, 2019, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2019) follows.

No.	Account Title	Debit			Credit
101	Cash	$	38,264
106	Accounts receivable		12,618
126	Computer supplies		2,545
128	Prepaid insurance		2,220
131	Prepaid rent		3,300
163	Office equipment		8,000
164	Accumulated depreciation—Office equipment				$	0
167	Computer equipment		20,000
168	Accumulated depreciation—Computer equipment					0
201	Accounts payable					0
210	Wages payable					0
236	Unearned computer services revenue					0
307	Common stock					73,000
318	Retained earnings					0
319	Dividends		5,600
403	Computer services revenue					25,659
612	Depreciation expense—Office equipment		0
613	Depreciation expense—Computer equipment		0
623	Wages expense		2,625
637	Insurance expense		0
640	Rent expense		0
652	Computer supplies expense		0
655	Advertising expense		1,728
676	Mileage expense		704
677	Miscellaneous expenses		250
684	Repairs expense—Computer		805
	Totals	$	98,659		$	98,659

Business Solutions had the following transactions and events in December 2019.

Dec.	2		Paid $1,025 cash to Hillside Mall for Business Solutions’ share of mall advertising costs.
	3		Paid $500 cash for minor repairs to the company’s computer.
	4		Received $3,950 cash from Alex’s Engineering Co. for the receivable from November.
	10		Paid cash to Lyn Addie for six days of work at the rate of $125 per day.
	14		Notified by Alex’s Engineering Co. that Business Solutions’ bid of $7,000 on a proposed project has been accepted. Alex’s paid a $1,500 cash advance to Business Solutions.
	15		Purchased $1,100 of computer supplies on credit from Harris Office Products.
	16		Sent a reminder to Gomez Co. to pay the fee for services recorded on November 8.
	20		Completed a project for Liu Corporation and received $5,625 cash.
22–26			Took the week off for the holidays.
	28		Received $3,000 cash from Gomez Co. on its receivable.
	29		Reimbursed S. Rey for business automobile mileage (600 miles at $0.32 per mile).
	31		The company paid $1,500 cash in dividends.

The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company’s first three months.

1. The December 31 inventory count of computer supplies shows $580 still available.
2. Three months have expired since the 12-month insurance premium was paid in advance.
3. As of December 31, Lyn Addie has not been paid for four days of work at $125 per day.
4. The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.
5. The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.
6. Three of the four months' prepaid rent have expired

Prepare a post-closing trial balance as of December 31, 2019.

Answer 1

	Post Trial balance as of December 31, 2019
		Opening balances	Transactions	Closing balances
		Dr	Cr	Dr	Cr	Dr	Cr
101	Cash	38,264.00		14,075.00	3,967.00	48,372.00
106	Accounts receivables	12,618.00			12,575.00	43.00
126	Computer supplies	2,545.00			1,965.00	580.00
128	Prepaid insurance	2,220.00			555.00	1,665.00
131	Prepaid rent	3,300.00			2,475.00	825.00
163	Office equipment	8,000.00				8,000.00
164	Accumulated depreciation- Office equipment		-		400.00		400.00
167	Computer equipments	20,000.00				20,000.00
168	Accumulated depreciation- Computer		-		1,250.00		1,250.00
201	Accounts payable		-		1,100.00		1,100.00
210	Wages payable		-		500.00		500.00
236	Un earned computer service revenue		-		1,500.00		1,500.00
307	Common stock		73,000.00				73,000.00
318	Retained earnings		-				-
319	Dividends	5,600.00		1,500.00		7,100.00
403	Computer services revenue		25,659.00				25,659.00
612	Depreciation - Office equipment	-		400.00		400.00
613	Depreciation - Computer equipment	-		1,250.00		1,250.00
623	Wages expense	2,625.00		1,250.00		3,875.00
637	Insurance expense	-		555.00		555.00
640	Rent expense	-		2,475.00		2,475.00
652	Computer supplies expenses	-		3,065.00		3,065.00
655	Advertising expenses	1,728.00		1,025.00		2,753.00
676	Milage expenses	704.00		192.00		896.00
677	Miscellaneous Expenses	250.00				250.00
684	Repairs expenses -Computer	805.00		500.00		1,305.00
	Total	98,659.00	98,659.00	25,662.00	25,662.00	103,409.00	103,409.00