Question

Serial Problem Business Solutions LO P2, P3

The December 31, 2017, adjusted trial balance of Business Solutions (reflecting its transactions from October through December of 2017) follows.
  

No	Account Title	Debit			Credit
101	Cash	$	50,801
106	Accounts receivable		5,568
126	Computer supplies		620
128	Prepaid insurance		1,530
131	Prepaid rent		750
163	Office equipment		8,900
164	Accumulated depreciation—Office equipment				$	445
167	Computer equipment		22,400
168	Accumulated depreciation—Computer equipment					1,400
201	Accounts payable					2,000
210	Wages payable					460
236	Unearned computer services revenue					2,100
301	S. Rey, Capital					64,000
302	S. Rey, Withdrawals		7,600
403	Computer services revenue					44,944
612	Depreciation expense—Office equipment		445
613	Depreciation expense—Computer equipment		1,400
623	Wages expense		3,675
637	Insurance expense		510
640	Rent expense		2,250
652	Computer supplies expense		4,025
655	Advertising expense		2,678
676	Mileage expense		852
677	Miscellaneous expenses		170
684	Repairs expense—Computer		1,175
901	Income summary					0
	Totals	$	115,349		$	115,349

Required:
1. Record the closing entries for Business Solutionss.
2. Prepare a post-closing trial balance as of December 31, 2017

Answer 1

1) . Record the closing entries for Business Solutionss.

Date	account and explanation	debit	credit
	Computer services revenue	44944
	Income summary		44944
	(To close revenue account)
	Income summary	17180
	Depreciation expense—Office equipment		445
	Depreciation expense—Computer equipment		1400
	Wages expense		3675
	Insurance expense		510
	Rent expense		2250
	Computer supplies expense		4025
	Advertising expense		2678
	Mileage expense		852
	Miscellaneous expenses		170
	Repairs expense—Computer		1175
	(To close expense account)
	Income summary	27764
	S. Rey, Capital		27764
	(To close income summary)
	S. Rey, Capital	7600
	S. Rey, Withdrawals		7600
	(To close withdrawal account)

2. Prepare a post-closing trial balance as of December 31, 2017

Account	Debit	Credit
Cash	50801
Accounts receivable	5568
Computer supplies	620
Prepaid insurance	1530
Prepaid rent	750
Office equipment	8900
Accumulated depreciation—Office equipment		445
Computer equipment	22400
Accumulated depreciation—Computer equipment		1400
Accounts payable		2000
Wages payable		460
Unearned computer services revenue		2100
S. Rey, Capital		84164
Totals	90569	90569