Question

Serial Problem Business Solutions LO P2, P3

The December 31, 2019, adjusted trial balance of Business Solutions (reflecting its transactions from October through December of 2019) follows.
  

No	Account Title	Debit			Credit
101	Cash	$	50,819
106	Accounts receivable		4,568
126	Computer supplies		640
128	Prepaid insurance		1,485
131	Prepaid rent		790
163	Office equipment		8,700
164	Accumulated depreciation—Office equipment				$	435
167	Computer equipment		23,600
168	Accumulated depreciation—Computer equipment					1,475
201	Accounts payable					2,000
210	Wages payable					420
236	Unearned computer services revenue					1,700
301	S. Rey, Capital					64,000
302	S. Rey, Withdrawals		7,000
403	Computer services revenue					44,789
612	Depreciation expense—Office equipment		435
613	Depreciation expense—Computer equipment		1,475
623	Wages expense		3,500
637	Insurance expense		495
640	Rent expense		2,370
652	Computer supplies expense		4,005
655	Advertising expense		2,688
676	Mileage expense		824
677	Miscellaneous expenses		180
684	Repairs expense—Computer		1,245
901	Income summary					0
	Totals	$	114,819		$	114,819

Required:
1. Record the closing entries as of December 31, 2019.
2. Prepare a post-closing trial balance as of December 31, 2019.

Answer 1