Question

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	$	38,864
106	Accounts receivable		12,818
126	Computer supplies		2,545
128	Prepaid insurance		2,040
131	Prepaid rent		3,180
163	Office equipment		8,900
164	Accumulated depreciation—Office equipment				$	0
167	Computer equipment		23,200
168	Accumulated depreciation—Computer equipment					0
201	Accounts payable					0
210	Wages payable					0
236	Unearned computer services revenue					0
307	Common stock					67,000
318	Retained earnings					0
319	Dividends		5,900
403	Computer services revenue					36,279
612	Depreciation expense—Office equipment		0
613	Depreciation expense—Computer equipment		0
623	Wages expense		2,475
637	Insurance expense		0
640	Rent expense		0
652	Computer supplies expense		0
655	Advertising expense		1,688
676	Mileage expense		644
677	Miscellaneous expenses		240
684	Repairs expense—Computer		785
	Totals	$	103,279		$	103,279

Question: Need help on how to post the following adjusting entries below.

Business Solutions had the following transactions and events in December 2015.

Dec.	2	Paid $975 cash to Hillside Mall for Business Solutions’ share of mall advertising costs.
	3	Paid $480 cash for minor repairs to the company’s computer.
	4	Received $4,650 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 $110 per day.
	14	Notified by Alex’s Engineering Co. that Business Solutions’ bid of $8,000 on a proposed    project has been accepted. Alex’s paid a $1,800 cash advance to Business Solutions.
	15	Purchased $1,200 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 $6,575 cash.
	22–26	Took the week off for the holidays.
	28	Received $3,100 cash from Gomez Co. on its receivable.
	29	Reimbursed S. Rey for business automobile mileage (500 miles at $0.32 per mile).
	31	The company paid $1,400 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:

a.	The December 31 inventory count of computer supplies shows $600 still available.
b.	Three months have expired since the 12-month insurance premium was paid in advance.
c.	As of December 31, Lyn Addie has not been paid for four days of work at $110 per day.
d.	The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.
e.	The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.
f.	Three of the four months' prepaid rent has expired.

Answer 1

	Business Solution
Date	Particular	Amount (Dr)	Amount (Cr)
2-Dec	Advertisement Expenses	$               975.00
	To Cash		$                                                975.00
	(Being amount paid to Hillside Mall)
3-Dec	Repair Expenses	$               480.00
	To Cash		$                                                480.00
	(Being amount paid for computer repair)
4-Dec	Cash	$           4,650.00
	To Accounts Receivable		$                                            4,650.00
	(Being amount received from Alex's Engineering Company)
10-Dec	Wages Expenses	$               660.00
	To Cash		$                                                660.00
	(Being amount paid to Lyn Addie for 6 days work @$110)
14-Dec	Cash	$           1,800.00
	To Unearned Service Revenue		$                                            1,800.00
	(Being amount received as advance)
15-Dec	Comuter supplies	$           1,200.00
	To Accounts Payable		$                                            1,200.00
	(Being amount of purchase of Computer supples from Harris Office Products)
20-Dec	Cash	$           6,575.00
	To Computer Service Revenue		$                                            6,575.00
	(Being amount of completed a project of Liu Corporation)
28-Dec	Cash	$           3,100.00
	To Accounts Receivable		$                                            3,100.00
	(Being amount received Gomez Co,)
29-Dec	Mileage Expenses(500*.32)	$               160.00
	To Cash		$                                                160.00
	(Being amount reimbursed to S.Rey)
31-Dec	Dividend	$           1,400.00
	To Cash		$                                            1,400.00
	(Being amount paid for dividend)
	Adjusting Entries
31-Dec	Computer Supplies Expenses($2545+$1200-$600)	$           3,145.00
	To Computer Supplies		$                                            3,145.00
	(Being amount of Computer Supplies Expenses)
31-Dec	Insurance ($1980*3/12)	$               510.00
	To Prepaid Insurance		$                                                510.00
	(Being amount of Insurance Expenses)
31-Dec	Wages	$               440.00
	To Wages Payable		$                                                440.00
	(Being amount of wages Payable)
31-Dec	Depreciation-Computer Equipment($23200/4)*3/12	$           1,450.00
	To Accumulated Depreciation-Computer Equipment		$                                            1,450.00
	(Being amount of Depreciation on Computer Equipment)
31-Dec	Depreciation-Office Equipment($8900/5)*3/12	$               445.00
	To Accumulated Depreciation-Office Equipment		$                                                445.00
	(Being amount of Depreciation on Office Equipment)
31-Dec	Rent($3180*3/4)	$           2,385.00
	To Prepaid Rent		$                                            2,385.00
	(Being amount of Prepaid Rent)
	Cash A/c
Date	Particular	Amt (DR)	Amount (Cr)	Balance
1-Dec	Bal			38864
2-Dec	Advertisement		$                                                975.00	37,889.00
3-Dec	Computer Repair		$                                                480.00	37,409.00
4-Dec	Accounts Receivable	$           4,650.00		42,059.00
10-Dec	Wages		$                                                660.00	41,399.00
14-Dec	Unearned Service Revenue	$           1,800.00		43,199.00
20-Dec	Computer Service Revenue	$           6,575.00		49,774.00
28-Dec	Accounts Receivable	$           3,100.00		52,874.00
29-Dec	Mileage Expenses		$                                                160.00	52,714.00
31-Dec	Dividend		$                                            1,400.00	51,314.00
	Accounts Receivable
Date	Particular	Amt (DR)	Amount (Cr)	Balance
1-Dec	Bal			12818
4-Dec	Cash		$                                            4,650.00	8,168.00
28-Dec	Cash		$                                            3,100.00	5,068.00
	Prepaid Rent
Date	Particular	Amt (DR)	Amount (Cr)	Balance
1-Dec	Bal			$                3,180.00
31-Dec	Rent		$                                            2,385.00	795.00
	Prepaid Insurance
Date	Particular	Amt (DR)	Amount (Cr)	Balance
1-Dec	Bal			2040
31-Dec	Insurance		$                                                510.00	1,530.00
	Rent
Date	Particular	Amt (DR)	Amount (Cr)	Balance
1-Dec	Bal			$                             -
31-Dec	Rent	$           2,385.00		2,385.00
	Insurance
Date	Particular	Amt (DR)	Amount (Cr)	Balance
1-Dec	Bal
31-Dec	Prepaid Insurance	$               510.00		510.00
	Wages Expenses
Date	Particular	Amt (DR)	Amount (Cr)	Balance
1-Dec	Bal			$                2,475.00
10-Dec	Cash	$               660.00		$                3,135.00
31-Dec	Wages Payable	$               440.00		$                3,575.00
	Mileage Expenses
Date	Particular	Amt (DR)	Amount (Cr)	Balance
1-Dec	Bal			644
29-Dec	Cash	$               160.00		804.00
	Depreciation Expense-Computer Equipment
Date	Particular	Amt (DR)	Amount (Cr)	Balance
31-Dec	Accumulated Depreciation	$           1,450.00		$                1,450.00
	Depreciation Expense-Office Equipment
Date	Particular	Amt (DR)	Amount (Cr)	Balance
31-Dec	Accumulated Depreciation	$               445.00		$                   445.00
	Dividend
Date	Particular	Amt (DR)	Amount (Cr)	Balance
31-Dec	Cash	$           1,400.00		$                1,400.00