| |

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.

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 TitleDebitCredit
101  Cash$38,264
106  Accounts receivable12,618
126  Computer supplies2,545
128  Prepaid insurance2,220
131  Prepaid rent3,300
163  Office equipment8,000
164  Accumulated depreciation—Office equipment$0
167  Computer equipment20,000
168  Accumulated depreciation—Computer equipment0
201  Accounts payable0
210  Wages payable0
236  Unearned computer services revenue0
307  Common stock73,000  
307  Retained earnings0
319  Dividends5,600
403  Computer services revenue25,659
612  Depreciation expense—Office equipment0
613  Depreciation expense—Computer equipment0
623  Wages expense2,625
637  Insurance expense0
640  Rent expense0
652  Computer supplies expense0
655  Advertising expense1,728
676  Mileage expense704
677  Miscellaneous expenses250
684  Repairs expense—Computer805
    
  Totals$98,659$98,659
    
Business Solutions had the following transactions and events in December 2015.
Dec.2Paid $1,025 cash to Hillside Mall for Business Solutions’ share of mall advertising costs.
3Paid $500 cash for minor repairs to the company’s computer.
4Received $3,950 cash from Alex’s Engineering Co. for the receivable from November.
10Paid cash to Lyn Addie for six days of work at the rate of $125 per day.
14Notified 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.
15Purchased $1,100 of computer supplies on credit from Harris Office Products.
16Sent a reminder to Gomez Co. to pay the fee for services recorded on November 8.
20Completed a project for Liu Corporation and received $5,625 cash.
22–26Took the week off for the holidays.
28Received $3,000 cash from Gomez Co. on its receivable.
29Reimbursed S. Rey for business automobile mileage (600 miles at $0.32 per mile).
31The 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:
a.The December 31 inventory count of computer supplies shows $580 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 $125 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.
Required:
1.Prepare journal entries to record each of the December transactions and events for Business Solutions.(If no entry is required for a transaction/event, select “No Journal Entry Required” in the first account field.) 2.1 Prepare adjusting entries to reflect a through f. 2.2 Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger.General Ledger Accounts 3 Prepare an adjusted trial balance as of December 31, 201 4 Prepare an income statement for the three months ended December 31, 2015. 5 Prepare a statement of owner’s equity for the three months ended December 31, 2015. (Enter all amounts as positive values.) 6 Prepare a balance sheet as of December 31, 2015. 7 Record and post the necessary closing entries for Business Solutions. (If no entry is required for a transaction/event, select “No Journal Entry Required” in the first account field.) 8 Prepare a post-closing trial balance as of December 31, 2015
Transcribed text From Image: 

Expert Chegg Question Answer:

free chegg question answer
Smart Teacher From Answerie.com
Answer:


Answer



Free Chegg Question Answer

Leave a Reply

Your email address will not be published. Required fields are marked *