Question

In: Accounting

After the success of the company’s first two months, Santana Rey continues to operate Business Solutions....

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.

Solutions

Expert Solution

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

Related Solutions

After the success of the company’s first two months, Santana Rey continues to operate Business Solutions....
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 13,218 126 Computer supplies 2,545 128 Prepaid insurance 2,100 131 Prepaid rent 3,020 163 Office equipment 8,400 164 Accumulated depreciation—Office equipment $ 0 167 Computer equipment 21,600 168 Accumulated depreciation—Computer equipment 0...
After the success of the company’s first two months, Santana Rey continues to operate Business Solutions....
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 $ 38,564 106 Accounts receivable 13,018 126 Computer supplies 2,545 128 Prepaid insurance 2,220 131 Prepaid rent 3,280 163 Office equipment 8,800 164 Accumulated depreciation—Office equipment $ 0 167 Computer equipment 20,400 168 Accumulated depreciation—Computer equipment 0...
After the success of the company’s first two months, Santana Rey continues to operate Business Solutions....
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...
After the success of the company’s first two months, Santana Rey continues to operate Business Solutions....
After the success of the company’s first two months, Santana Rey continues to operate Business Solutions. The November 30, 2017, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2017) follows. No. Account Title Debit Credit 101 Cash $ 38,764 106 Accounts receivable 13,418 126 Computer supplies 2,545 128 Prepaid insurance 2,040 131 Prepaid rent 3,140 163 Office equipment 8,000 164 Accumulated depreciation—Office equipment $ 0 167 Computer equipment 21,600 168 Accumulated depreciation—Computer equipment 0...
After the success of the company’s first two months, Santana Rey continues to operate Business Solutions....
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...
After the success of the company’s first two months, Santana Rey continues to operate Business Solutions....
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...
After the success of the company’s first two months, Santana Rey continues to operate Business Solutions....
After the success of the company’s first two months, Santana Rey continues to operate Business Solutions. The November 30, 2015, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2015) follows. No. Account Title Debit Credit 101 Cash $ 39,164 106 Accounts receivable 12,918 126 Computer supplies 2,645 128 Prepaid insurance 1,980 131 Prepaid rent 2,960 163 Office equipment 8,400 164 Accumulated depreciation—Office equipment $ 0 167 Computer equipment 21,200 168 Accumulated depreciation—Computer equipment 0...
After the success of the company’s first two months, Santana Rey continues to operate Business Solutions....
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...
After the success of the company’s first two months, Santana Rey continues to operate Business Solutions....
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...
After the success of the company’s first two months, Santana Rey continues to operate Business Solutions....
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 TitleDebitCredit 101Cash$39,164    106Accounts receivable 12,618    126Computer supplies 2,545    128Prepaid insurance 2,040    131Prepaid rent 2,920    163Office equipment 8,800    164Accumulated depreciation—Office equipment   $0 167Computer equipment 21,200    168Accumulated depreciation—Computer equipment    0 201Accounts payable    0 210Wages payable    0 236Unearned computer services revenue    0 307Common stock    71,000 318Retained earnings    0 319Dividends 6,400    403Computer services revenue    30,139...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT