Serial Problem Business Solutions LO P1, P2, P3
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 | $ | 38,364 | |||
| 106 | Accounts receivable | 13,218 | ||||
| 126 | Computer supplies | 2,645 | ||||
| 128 | Prepaid insurance | 2,040 | ||||
| 131 | Prepaid rent | 3,140 | ||||
| 163 | Office equipment | 8,000 | ||||
| 164 | Accumulated depreciation—Office equipment | $ | 0 | |||
| 167 | Computer equipment | 23,600 | ||||
| 168 | Accumulated depreciation—Computer equipment | 0 | ||||
| 201 | Accounts payable | 0 | ||||
| 210 | Wages payable | 0 | ||||
| 236 | Unearned computer services revenue | 0 | ||||
| 301 | S. Rey, Capital | 72,000 | ||||
| 302 | S. Rey, Withdrawals | 6,000 | ||||
| 403 | Computer services revenue | 30,844 | ||||
| 612 | Depreciation expense—Office equipment | 0 | ||||
| 613 | Depreciation expense—Computer equipment | 0 | ||||
| 623 | Wages expense | 2,550 | ||||
| 637 | Insurance expense | 0 | ||||
| 640 | Rent expense | 0 | ||||
| 652 | Computer supplies expense | 0 | ||||
| 655 | Advertising expense | 1,658 | ||||
| 676 | Mileage expense | 694 | ||||
| 677 | Miscellaneous expenses | 210 | ||||
| 684 | Repairs expense—Computer | 725 | ||||
| Totals | $ | 102,844 | $ | 102,844 | ||
Business Solutions had the following transactions and events in December 2017.
| Dec. | 2 | Paid $935 cash to Hillside Mall for Business Solutions’ share of mall advertising costs. | |
| 3 | Paid $400 cash for minor repairs to the company’s computer. | ||
| 4 | Received $4,250 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 $105 per day. | ||
| 14 | Notified by Alex’s Engineering Co. that Business Solutions’ bid of $7,800 on a proposed project has been accepted. Alex’s paid a $2,000 cash advance to Business Solutions. | ||
| 15 | Purchased $1,300 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 $6,375 cash. | ||
| 22–26 | Took the week off for the holidays. | ||
| 28 | Received $3,200 cash from Gomez Co. on its receivable. | ||
| 29 | Reimbursed S. Rey for business automobile mileage (400 miles at $0.25 per mile). | ||
| 31 | S. Rey withdrew $1,400 cash from the company for personal use. | ||
The following additional facts are collected for use in making
adjusting entries prior to preparing financial statements for the
company’s first three months:
Required:
1. Prepare journal entries to record each of the
December transactions and events for Business Solutions.
2-a. Prepare adjusting entries to reflect a
through f.
2-b. Post the journal entries to record each of
the December transactions, adjusting entries to the accounts in the
ledger.
3. Prepare an adjusted trial balance as of
December 31, 2017.
4. Prepare an income statement for the three
months ended December 31, 2017.
5. Prepare a statement of owner’s equity for the
three months ended December 31, 2017.
6. Prepare a balance sheet as of December 31,
2017.
In: Accounting
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
612Depreciation expense—Office equipment 0
613Depreciation expense—Computer equipment 0
623Wages expense 2,125
637Insurance expense 0
640Rent expense 0
652Computer supplies expense 0
655Advertising expense 1,728
676Mileage expense 704
677Miscellaneous expenses 170
684Repairs expense—Computer 725
Totals$101,139 $101,139
Business Solutions had the following transactions and events in December 2019.
Dec.2 Paid $955 cash to Hillside Mall for Business Solutions’ share of mall advertising costs.
3 Paid $430 cash for minor repairs to the company’s computer.
4 Received $4,950 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 $120 per day.
14 Notified by Alex’s Engineering Co. that Business Solutions’ bid of $7,100 on a proposed project has been accepted. Alex’s paid a $2,000 cash advance to Business Solutions.
15 Purchased $1,700 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 $3,900 cash from Gomez Co. on its receivable.
29 Reimbursed S. Rey for business automobile mileage (400 miles at $0.27 per mile).
31 The company paid $1,300 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.
The December 31 inventory count of computer supplies shows $630 still available.
Three months have expired since the 12-month insurance premium was paid in advance.
As of December 31, Lyn Addie has not been paid for four days of work at $120 per day.
The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.
The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.
Three of the four months' prepaid rent have expired.
Required:
1. Prepare journal entries to record each of the December transactions and events for Business Solutions.
2-a. Prepare adjusting entries to reflect a through f.
2-b. Post the journal entries to record each of the December transactions from Requirement 1 and adjusting entries from Requirement 2A. After completing Requirement 7, post the closing entries to the general ledger accounts.
3. Prepare an adjusted trial balance as of December 31, 2019.
4. Prepare an income statement for the three months ended December 31, 2019.
5. Prepare a statement of retained earnings for the three months ended December 31, 2019.
6. Prepare a balance sheet as of December 31, 2019.
7. Record the necessary closing entries as of December 31, 2019 and then post the closing entries to the general ledger in Requirement 2B.
8. Prepare a post-closing trial balance as of December 31, 2019.
In: Accounting
Serial Problem Business Solutions LO P1, P2, P3, P4, P5
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 | $ | 38,864 | |||
| 106 | Accounts receivable | 12,718 | ||||
| 126 | Computer supplies | 2,645 | ||||
| 128 | Prepaid insurance | 2,040 | ||||
| 131 | Prepaid rent | 2,940 | ||||
| 163 | Office equipment | 8,400 | ||||
| 164 | Accumulated depreciation—Office equipment | $ | 0 | |||
| 167 | Computer equipment | 20,800 | ||||
| 168 | Accumulated depreciation—Computer equipment | 0 | ||||
| 201 | Accounts payable | 0 | ||||
| 210 | Wages payable | 0 | ||||
| 236 | Unearned computer services revenue | 0 | ||||
| 307 | Common stock | 71,000 | ||||
| 318 | Retained earnings | 0 | ||||
| 319 | Dividends | 5,800 | ||||
| 403 | Computer services revenue | 28,889 | ||||
| 612 | Depreciation expense—Office equipment | 0 | ||||
| 613 | Depreciation expense—Computer equipment | 0 | ||||
| 623 | Wages expense | 2,525 | ||||
| 637 | Insurance expense | 0 | ||||
| 640 | Rent expense | 0 | ||||
| 652 | Computer supplies expense | 0 | ||||
| 655 | Advertising expense | 1,628 | ||||
| 676 | Mileage expense | 624 | ||||
| 677 | Miscellaneous expenses | 180 | ||||
| 684 | Repairs expense—Computer | 725 | ||||
| Totals | $ | 99,889 | $ | 99,889 | ||
Business Solutions had the following transactions and events in December 2017.
| Dec. | 2 | Paid $965 cash to Hillside Mall for Business Solutions’ share of mall advertising costs. | |
| 3 | Paid $470 cash for minor repairs to the company’s computer. | ||
| 4 | Received $4,350 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 $105 per day. | ||
| 14 | Notified by Alex’s Engineering Co. that Business Solutions’ bid of $7,400 on a proposed project has been accepted. Alex’s paid a $1,600 cash advance to Business Solutions. | ||
| 15 | Purchased $1,500 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 $6,475 cash. | ||
| 22–26 | Took the week off for the holidays. | ||
| 28 | Received $3,900 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:
Required:
1. Prepare journal entries to record each of the
December transactions and events for Business Solutions.
2-a. Prepare adjusting entries to reflect a
through f.
2-b. Post the journal entries to record each of
the December transactions, adjusting entries to the accounts in the
ledger.
3. Prepare an adjusted trial balance as of
December 31, 2017.
4. Prepare an income statement for the three
months ended December 31, 2017.
5. Prepare a statement of retained earnings for
the three months ended December 31, 2017.
6. Prepare a balance sheet as of December 31,
2017.
7. Record and post the necessary closing entries
as of December 31, 2017.
8. Prepare a post-closing trial balance as of
December 31, 2017.
In: Accounting
Serial Problem Business Solutions LO P1, P2, P3
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 | $ | 38,364 | |||
| 106 | Accounts receivable | 13,218 | ||||
| 126 | Computer supplies | 2,645 | ||||
| 128 | Prepaid insurance | 2,040 | ||||
| 131 | Prepaid rent | 3,140 | ||||
| 163 | Office equipment | 8,000 | ||||
| 164 | Accumulated depreciation—Office equipment | $ | 0 | |||
| 167 | Computer equipment | 23,600 | ||||
| 168 | Accumulated depreciation—Computer equipment | 0 | ||||
| 201 | Accounts payable | 0 | ||||
| 210 | Wages payable | 0 | ||||
| 236 | Unearned computer services revenue | 0 | ||||
| 301 | S. Rey, Capital | 72,000 | ||||
| 302 | S. Rey, Withdrawals | 6,000 | ||||
| 403 | Computer services revenue | 30,844 | ||||
| 612 | Depreciation expense—Office equipment | 0 | ||||
| 613 | Depreciation expense—Computer equipment | 0 | ||||
| 623 | Wages expense | 2,550 | ||||
| 637 | Insurance expense | 0 | ||||
| 640 | Rent expense | 0 | ||||
| 652 | Computer supplies expense | 0 | ||||
| 655 | Advertising expense | 1,658 | ||||
| 676 | Mileage expense | 694 | ||||
| 677 | Miscellaneous expenses | 210 | ||||
| 684 | Repairs expense—Computer | 725 | ||||
| Totals | $ | 102,844 | $ | 102,844 | ||
Business Solutions had the following transactions and events in December 2017.
| Dec. | 2 | Paid $935 cash to Hillside Mall for Business Solutions’ share of mall advertising costs. | |
| 3 | Paid $400 cash for minor repairs to the company’s computer. | ||
| 4 | Received $4,250 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 $105 per day. | ||
| 14 | Notified by Alex’s Engineering Co. that Business Solutions’ bid of $7,800 on a proposed project has been accepted. Alex’s paid a $2,000 cash advance to Business Solutions. | ||
| 15 | Purchased $1,300 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 $6,375 cash. | ||
| 22–26 | Took the week off for the holidays. | ||
| 28 | Received $3,200 cash from Gomez Co. on its receivable. | ||
| 29 | Reimbursed S. Rey for business automobile mileage (400 miles at $0.25 per mile). | ||
| 31 | S. Rey withdrew $1,400 cash from the company for personal use. | ||
The following additional facts are collected for use in making
adjusting entries prior to preparing financial statements for the
company’s first three months:
Required:
1. Prepare journal entries to record each of the
December transactions and events for Business Solutions.
2-a. Prepare adjusting entries to reflect a
through f.
2-b. Post the journal entries to record each of
the December transactions, adjusting entries to the accounts in the
ledger.
3. Prepare an adjusted trial balance as of
December 31, 2017.
4. Prepare an income statement for the three
months ended December 31, 2017.
5. Prepare a statement of owner’s equity for the
three months ended December 31, 2017.
6. Prepare a balance sheet as of December 31,
2017.
In: Accounting
Serial Problem Business Solutions LO P1, P2, P3, P4, P5, P6
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 | $ | 38,664 | |||
| 106 | Accounts receivable | 12,818 | ||||
| 126 | Computer supplies | 2,545 | ||||
| 128 | Prepaid insurance | 1,980 | ||||
| 131 | Prepaid rent | 3,300 | ||||
| 163 | Office equipment | 8,800 | ||||
| 164 | Accumulated depreciation—Office equipment | $ | 0 | |||
| 167 | Computer equipment | 20,400 | ||||
| 168 | Accumulated depreciation—Computer equipment | 0 | ||||
| 201 | Accounts payable | 0 | ||||
| 210 | Wages payable | 0 | ||||
| 236 | Unearned computer services revenue | 0 | ||||
| 307 | Common stock | 65,000 | ||||
| 318 | Retained earnings | 0 | ||||
| 319 | Dividends | 6,600 | ||||
| 403 | Computer services revenue | 35,774 | ||||
| 612 | Depreciation expense—Office equipment | 0 | ||||
| 613 | Depreciation expense—Computer equipment | 0 | ||||
| 623 | Wages expense | 2,350 | ||||
| 637 | Insurance expense | 0 | ||||
| 640 | Rent expense | 0 | ||||
| 652 | Computer supplies expense | 0 | ||||
| 655 | Advertising expense | 1,708 | ||||
| 676 | Mileage expense | 654 | ||||
| 677 | Miscellaneous expenses | 220 | ||||
| 684 | Repairs expense—Computer | 735 | ||||
| Totals | $ | 100,774 | $ | 100,774 | ||
Business Solutions had the following transactions and events in December 2019.
| Dec. | 2 | Paid $955 cash to Hillside Mall for Business Solutions’ share of mall advertising costs. | |
| 3 | Paid $420 cash for minor repairs to the company’s computer. | ||
| 4 | Received $4,350 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 $7,400 on a proposed project has been accepted. Alex’s paid a $1,700 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 $5,925 cash. | ||
| 22–26 | Took the week off for the holidays. | ||
| 28 | Received $3,600 cash from Gomez Co. on its receivable. | ||
| 29 | Reimbursed S. Rey for business automobile mileage (600 miles at $0.25 per mile). | ||
| 31 | The company paid $1,300 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.
Required:
1. Prepare journal entries to record each of the
December transactions and events for Business Solutions.
2-a. Prepare adjusting entries to reflect
a through f.
2-b. Post the journal entries to record each of
the December transactions, adjusting entries to the accounts in the
ledger.
3. Prepare an adjusted trial balance as of
December 31, 2019.
4. Prepare an income statement for the three
months ended December 31, 2019.
5. Prepare a statement of retained earnings for
the three months ended December 31, 2019.
6. Prepare a balance sheet as of December 31,
2019.
7. Record and post the necessary closing entries
as of December 31, 2019.
8. Prepare a post-closing trial balance as of
December 31, 2019.
In: Accounting
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 | $ | 38,964 | |||
| 106 | Accounts receivable | 12,618 | ||||
| 126 | Computer supplies | 2,545 | ||||
| 128 | Prepaid insurance | 1,860 | ||||
| 131 | Prepaid rent | 3,260 | ||||
| 163 | Office equipment | 8,000 | ||||
| 164 | Accumulated depreciation—Office equipment | $ | 0 | |||
| 167 | Computer equipment | 22,800 | ||||
| 168 | Accumulated depreciation—Computer equipment | 0 | ||||
| 201 | Accounts payable | 0 | ||||
| 210 | Wages payable | 0 | ||||
| 236 | Unearned computer services revenue | 0 | ||||
| 307 | Common stock | 66,000 | ||||
| 318 | Retained earnings | 0 | ||||
| 319 | Dividends | 6,000 | ||||
| 403 | Computer services revenue | 35,624 | ||||
| 612 | Depreciation expense—Office equipment | 0 | ||||
| 613 | Depreciation expense—Computer equipment | 0 | ||||
| 623 | Wages expense | 2,250 | ||||
| 637 | Insurance expense | 0 | ||||
| 640 | Rent expense | 0 | ||||
| 652 | Computer supplies expense | 0 | ||||
| 655 | Advertising expense | 1,708 | ||||
| 676 | Mileage expense | 624 | ||||
| 677 | Miscellaneous expenses | 220 | ||||
| 684 | Repairs expense—Computer | 775 | ||||
| Totals | $ | 101,624 | $ | 101,624 | ||
Business Solutions had the following transactions and events in December 2017.
| Dec. | 2 | Paid $1,015 cash to Hillside Mall for Business Solutions’ share of mall advertising costs. | |
| 3 | Paid $450 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 $105 per day. | ||
| 14 | Notified by Alex’s Engineering Co. that Business Solutions’ bid of $7,800 on a proposed project has been accepted. Alex’s paid a $1,900 cash advance to Business Solutions. | ||
| 15 | Purchased $1,800 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 $6,025 cash. | ||
| 22–26 | Took the week off for the holidays. | ||
| 28 | Received $3,800 cash from Gomez Co. on its receivable. | ||
| 29 | Reimbursed S. Rey for business automobile mileage (400 miles at $0.30 per mile). | ||
| 31 | The company paid $1,100 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:
The December 31 inventory count of computer supplies shows $640 still available.
Three months have expired since the 12-month insurance premium was paid in advance.
As of December 31, Lyn Addie has not been paid for four days of work at $105 per day.
The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.
The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.
Three of the four months' prepaid rent has expired.
Required:
1. Prepare journal entries to record each of the
December transactions and events for Business Solutions.
2-a. Prepare adjusting entries to reflect a
through f.
2-b. Post the journal entries to record each of
the December transactions, adjusting entries to the accounts in the
ledger.
3. Prepare an adjusted trial balance as of
December 31, 2017.
4. Prepare an income statement for the three
months ended December 31, 2017.
5. Prepare a statement of retained earnings for
the three months ended December 31, 2017.
6. Prepare a balance sheet as of December 31,
2017.
7. Record and post the necessary closing entries
as of December 31, 2017.
8. Prepare a post-closing trial balance as of
December 31, 2017.
In: Accounting
After the success of the company’s first two months, Santana Rey
continues to operate Business Solutions. The November 30, 2018,
unadjusted trial balance of Business Solutions (reflecting its
transactions for October and November of 2018) follows.
| No. | Account Title | Debit | Credit | |||
| 101 | Cash | $ | 38,964 | |||
| 106 | Accounts receivable | 12,918 | ||||
| 126 | Computer supplies | 2,645 | ||||
| 128 | Prepaid insurance | 1,980 | ||||
| 131 | Prepaid rent | 3,240 | ||||
| 163 | Office equipment | 8,400 | ||||
| 164 | Accumulated depreciation—Office equipment | $ | 0 | |||
| 167 | Computer equipment | 21,600 | ||||
| 168 | Accumulated depreciation—Computer equipment | 0 | ||||
| 201 | Accounts payable | 0 | ||||
| 210 | Wages payable | 0 | ||||
| 236 | Unearned computer services revenue | 0 | ||||
| 307 | Common stock | 70,000 | ||||
| 318 | Retained earnings | 0 | ||||
| 319 | Dividends | 6,500 | ||||
| 403 | Computer services revenue | 32,179 | ||||
| 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 | 1,678 | ||||
| 676 | Mileage expense | 684 | ||||
| 677 | Miscellaneous expenses | 230 | ||||
| 684 | Repairs expense—Computer | 715 | ||||
| Totals | $ | 102,179 | $ | 102,179 | ||
Business Solutions had the following transactions and events in December 2018.
| Dec. | 2 | Paid $1,020 cash to Hillside Mall for Business Solutions’ share of mall advertising costs. | |
| 3 | Paid $410 cash for minor repairs to the company’s computer. | ||
| 4 | Received $4,550 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 $105 per day. | ||
| 14 | Notified by Alex’s Engineering Co. that Business Solutions’ bid of $7,400 on a proposed project has been accepted. Alex’s paid a $1,800 cash advance to Business Solutions. | ||
| 15 | Purchased $1,500 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 $5,825 cash. | ||
| 22–26 | Took the week off for the holidays. | ||
| 28 | Received $3,500 cash from Gomez Co. on its receivable. | ||
| 29 | Reimbursed S. Rey for business automobile mileage (400 miles at $0.28 per mile). | ||
| 31 | The company paid $1,300 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:
Required:
1. Prepare journal entries to record each of the
December transactions and events for Business Solutions.
2-a. Prepare adjusting entries to reflect
a through f.
2-b. Post the journal entries to record each of
the December transactions, adjusting entries to the accounts in the
ledger.
3. Prepare an adjusted trial balance as of
December 31, 2018.
4. Prepare an income statement for the three
months ended December 31, 2018.
5. Prepare a statement of retained earnings for
the three months ended December 31, 2018.
6. Prepare a balance sheet as of December 31,
2018.
7. Record and post the necessary closing entries
as of December 31, 2018.
8. Prepare a post-closing trial balance as of
December 31, 2018.
In: Accounting
Serial Problem Business Solutions LO P1, P2, P3, P4, P5
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 | $ | 39,264 | |||
| 106 | Accounts receivable | 13,418 | ||||
| 126 | Computer supplies | 2,645 | ||||
| 128 | Prepaid insurance | 2,040 | ||||
| 131 | Prepaid rent | 2,920 | ||||
| 163 | Office equipment | 8,100 | ||||
| 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 | 66,000 | ||||
| 318 | Retained earnings | 0 | ||||
| 319 | Dividends | 6,100 | ||||
| 403 | Computer services revenue | 37,474 | ||||
| 612 | Depreciation expense—Office equipment | 0 | ||||
| 613 | Depreciation expense—Computer equipment | 0 | ||||
| 623 | Wages expense | 2,450 | ||||
| 637 | Insurance expense | 0 | ||||
| 640 | Rent expense | 0 | ||||
| 652 | Computer supplies expense | 0 | ||||
| 655 | Advertising expense | 1,638 | ||||
| 676 | Mileage expense | 664 | ||||
| 677 | Miscellaneous expenses | 250 | ||||
| 684 | Repairs expense—Computer | 785 | ||||
| Totals | $ | 103,474 | $ | 103,474 | ||
Business Solutions had the following transactions and events in December 2017.
| Dec. | 2 | Paid $960 cash to Hillside Mall for Business Solutions’ share of mall advertising costs. | |
| 3 | Paid $430 cash for minor repairs to the company’s computer. | ||
| 4 | Received $4,750 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 $120 per day. | ||
| 14 | Notified by Alex’s Engineering Co. that Business Solutions’ bid of $7,500 on a proposed project has been accepted. Alex’s paid a $2,100 cash advance to Business Solutions. | ||
| 15 | Purchased $1,500 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 $6,425 cash. | ||
| 22–26 | Took the week off for the holidays. | ||
| 28 | Received $3,600 cash from Gomez Co. on its receivable. | ||
| 29 | Reimbursed S. Rey for business automobile mileage (600 miles at $0.25 per mile). | ||
| 31 | The company paid $1,300 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:
Required:
1. Prepare journal entries to record each of the
December transactions and events for Business Solutions.
2-a. Prepare adjusting entries to reflect a
through f.
2-b. Post the journal entries to record each of
the December transactions, adjusting entries to the accounts in the
ledger.
3. Prepare an adjusted trial balance as of
December 31, 2017.
4. Prepare an income statement for the three
months ended December 31, 2017.
5. Prepare a statement of retained earnings for
the three months ended December 31, 2017.
6. Prepare a balance sheet as of December 31,
2017.
7. Record and post the necessary closing entries
as of December 31, 2017.
8. Prepare a post-closing trial balance as of
December 31, 2017.
In: Accounting
Serial Problem Business Solutions LO P1, P2, P3, P4, P5 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 $ 38,664 106 Accounts receivable 12,818 126 Computer supplies 2,645 128 Prepaid insurance 2,040 131 Prepaid rent 3,240 163 Office equipment 8,700 164 Accumulated depreciation—Office equipment $ 0 167 Computer equipment 20,400 168 Accumulated depreciation—Computer equipment 0 201 Accounts payable 0 210 Wages payable 0 236 Unearned computer services revenue 0 307 Common stock 64,000 318 Retained earnings 0 319 Dividends 6,200 403 Computer services revenue 36,129 612 Depreciation expense—Office equipment 0 613 Depreciation expense—Computer equipment 0 623 Wages expense 2,125 637 Insurance expense 0 640 Rent expense 0 652 Computer supplies expense 0 655 Advertising expense 1,678 676 Mileage expense 644 677 Miscellaneous expenses 250 684 Repairs expense—Computer 725 Totals $ 100,129 $ 100,129 Business Solutions had the following transactions and events in December 2017. Dec. 2 Paid $1,025 cash to Hillside Mall for Business Solutions’ share of mall advertising costs. 3 Paid $460 cash for minor repairs to the company’s computer. 4 Received $4,750 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 $120 per day. 14 Notified by Alex’s Engineering Co. that Business Solutions’ bid of $7,800 on a proposed project has been accepted. Alex’s paid a $2,200 cash advance to Business Solutions. 15 Purchased $2,000 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 $6,125 cash. 22–26 Took the week off for the holidays. 28 Received $3,800 cash from Gomez Co. on its receivable. 29 Reimbursed S. Rey for business automobile mileage (400 miles at $0.26 per mile). 31 The company paid $1,200 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: The December 31 inventory count of computer supplies shows $640 still available. Three months have expired since the 12-month insurance premium was paid in advance. As of December 31, Lyn Addie has not been paid for four days of work at $120 per day. The computer system, acquired on October 1, is expected to have a four-year life with no salvage value. The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value. Three of the four months' prepaid rent has expired. Required: 1. Prepare journal entries to record each of the December transactions and events for Business Solutions. 2-a. Prepare adjusting entries to reflect a through f. 2-b. Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger. 3. Prepare an adjusted trial balance as of December 31, 2017. 4. Prepare an income statement for the three months ended December 31, 2017. 5. Prepare a statement of retained earnings for the three months ended December 31, 2017. 6. Prepare a balance sheet as of December 31, 2017. 7. Record and post the necessary closing entries as of December 31, 2017. 8. Prepare a post-closing trial balance as of December 31, 2017.
In: Accounting
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 | $ | 38,364 | |||
| 106 | Accounts receivable | 13,318 | ||||
| 126 | Computer supplies | 2,645 | ||||
| 128 | Prepaid insurance | 1,980 | ||||
| 131 | Prepaid rent | 3,080 | ||||
| 163 | Office equipment | 8,600 | ||||
| 164 | Accumulated depreciation—Office equipment | $ | 0 | |||
| 167 | Computer equipment | 24,000 | ||||
| 168 | Accumulated depreciation—Computer equipment | 0 | ||||
| 201 | Accounts payable | 0 | ||||
| 210 | Wages payable | 0 | ||||
| 236 | Unearned computer services revenue | 0 | ||||
| 307 | Common stock | 72,000 | ||||
| 318 | Retained earnings | 0 | ||||
| 319 | Dividends | 6,600 | ||||
| 403 | Computer services revenue | 32,419 | ||||
| 612 | Depreciation expense—Office equipment | 0 | ||||
| 613 | Depreciation expense—Computer equipment | 0 | ||||
| 623 | Wages expense | 2,525 | ||||
| 637 | Insurance expense | 0 | ||||
| 640 | Rent expense | 0 | ||||
| 652 | Computer supplies expense | 0 | ||||
| 655 | Advertising expense | 1,708 | ||||
| 676 | Mileage expense | 644 | ||||
| 677 | Miscellaneous expenses | 160 | ||||
| 684 | Repairs expense—Computer | 795 | ||||
| Totals | $ | 104,419 | $ | 104,419 | ||
Business Solutions had the following transactions and events in December 2017.
| Dec. | 2 | Paid $945 cash to Hillside Mall for Business Solutions’ share of mall advertising costs. | |
| 3 | Paid $490 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 $120 per day. | ||
| 14 | Notified by Alex’s Engineering Co. that Business Solutions’ bid of $7,500 on a proposed project has been accepted. Alex’s paid a $1,600 cash advance to Business Solutions. | ||
| 15 | Purchased $2,000 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 $6,525 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 $0.24 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:
The December 31 inventory count of computer supplies shows $590 still available.
Three months have expired since the 12-month insurance premium was paid in advance.
As of December 31, Lyn Addie has not been paid for four days of work at $120 per day.
The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.
The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.
Three of the four months' prepaid rent has expired.
Required:
1. Prepare journal entries to record each of the
December transactions and events for Business Solutions.
2-a. Prepare adjusting entries to reflect a
through f.
2-b. Post the journal entries to record each of
the December transactions, adjusting entries to the accounts in the
ledger.
3. Prepare an adjusted trial balance as of
December 31, 2017.
4. Prepare an income statement for the three
months ended December 31, 2017.
5. Prepare a statement of retained earnings for
the three months ended December 31, 2017.
6. Prepare a balance sheet as of December 31,
2017.
7. Record and post the necessary closing entries
as of December 31, 2017.
8. Prepare a post-closing trial balance as of
December 31, 2017.
ONLY NEED "2-b. Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger." TO BE DONE PLEASE.
In: Accounting