2 Serial Problem Business Solutions LO P1, P2, P3, P4, P5, P6 20 points 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. Account Title Credit Cash eBook Debit $ 38,664 13,518 2,645 1,989 3,260 9,000 Print $ 20,400 0 0 References No. 101 106 126 128 131 163 164 167 168 201 210 236 301 302 403 612 613 623 637 640 652 655 676 677 684 73,000 Accounts receivable Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciation-office equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable Wages payable Unearned computer services revenue S. Rey, Capital S. Rey, Withdrawals Computer services revenue Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer Totals 6,200 28,544 2,600 1,628 624 250 775 $ 101,544 $ 101,544 Business Solutions had the following transactions and events in December 2019. Dec. 2 Paid $995 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 $4,150 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 $100 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 $1,400 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- took the week off for the holidays. Mc Graw Hill 2 677 684 Miscellaneous expenses Repairs expense-Computer Totals 250 775 $ 101,544 $101,544 20 points Business Solutions had the following transactions and events in December 2019. Dec. eBook 2 Paid $995 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 $4,150 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 $100 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 $1,400 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- Took the week off for the holidays. 26 28 Received $3,500 cash from Gomez Co. on its receivable. 29 Reimbursed 5. Rey for business automobile mileage (400 miles at $0.28 per mile). 31 S. Rey withdrew $1,300 cash from the company for personal use. Print References 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 $100 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 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, 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 owner's equity for the three months ended December 31, 2019. 6. Prepare a balance sheet as of December 31, 2019. Complete this question by entering your answers in the tabs below. 2 Reg 1 Reg 2A Reg 2B Req 2B Reg 3 Reg 4 Req 5 Reg 6 Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger. 20 points Cash Accounts Receivable Debit Credit Date Debit Credit Date Dec. 01 Balance 38,664 Balance 13,518 Dec. 01 eBook Print References Computer Supplies Debit Credit Prepaid Insurance Deb Credit Date Balance 2,645 Date Dec. 01 Balance 1.980 Dec. 01 Prepaid Rent Debit Credit Office Equipment Debit Credit Date Balance 3,260 Date Dec. 01 Balance 9,000 Dec. 01 Accumulated Depreciation-Office Equipment Date Debit Credit Balance Computer Equipment Debit Credit Date Balance 2. 20 points Accumulated Depreciation-Computer Equipment Date Debit Credit Balance Accounts Payable Debit Credit Balance Date Dec. 01 Dec. 01 0 0 eBook Wages Payable Debit Credit Unearned Computer Services Revenue Debit Credit Balance Date Balance Date Print Dec. 01 0 Dec. 01 0 References S. Rey, Capital Debit S. Rey, Withdrawals Debit Credit Credit Balance Date Dec. 01 Date Dec. 01 Balance 6.200 73.000 Computer Services Revenue Debit Credit Depreciation Expense-Office Equipment Debit Credit Balance Date Date Balance 28,544 Dec. 01 Dec. 01 0 Depreciation Expense-Computer Equipment Date Debit Credit Balance Dec. 01 Wages Expense Debit Credit Date Dec. 01 Balance 2,600 0 2 Depreciation Expense-Computer Equipment Date Debit Credit Balance Dec. 01 Wages Expense Debit Credit Date Balance 2,600 0 Dec. 01 20 points eBook Insurance Expense Debit Credit Rent Expense Debit Credit Date Balance Date Balance Dec. 01 0 Dec. 01 0 Print References Computer Supplies Expense Debit Advertising Expense Debit Credit Date Credit Balance Date Dec. 01 Balance 1.628 Dec. 01 0 Mileage Expense Debit Credit Miscellaneous Expenses Debit Credit Date Date Balance 624 Balance 250 Dec. 01 Dec. 01 Repairs Expense - Computer Debit Credit Date Dec. 01 Balance 775 2 BUSINESS SOLUTIONS Adjusted Trial Balance December 31, 2019 Account Title Debit Credit 20 points Cash Accounts receivable eBook Print References Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciationOffice equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable Wages payable Unearned computer services revenue S. Rey, Capital S. Rey, Withdrawals Computer services revenue Depreciation expense-Office equipment Depreciation expenseComputer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer Totals $ 0 $ 0 2. Prepare an income statement for the three months ended December 31, 2019. BUSINESS SOLUTIONS 20 points Income Statement For Three Months Ended December 31, 2019 Revenue eBook Expenses Print References Total expenses 2 a. mne computer system, dcquireu on Clover I, is expecteu lo dve d lour-yer le with no Salvdye 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 have expired. 20 points 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 owner's equity for the three months ended December 31, 2019. 6. Prepare a balance sheet as of December 31, 2019. eBook Print Complete this question by entering your answers in the tabs below. References Reg 1 Reg 2A Reg 2B Reg 3 Reg 4 Reg 5 Reg 6 Prepare a statement of owner's equity for the three months ended December 31, 2019. BUSINESS SOLUTIONS Statement of Owner's Equity For Three Months Ended December 31, 2019 S. Rey, Capital, October 1, 2019 0 S. Rey, Capital, December 31, 2019 $ 0 2 Reg 1 Reg 2A Reg 2B Reg 3 Reg 4 Reg 5 Reg 6 Prepare a balance sheet as of December 31, 2019. 20 points BUSINESS SOLUTIONS Balance Sheet December 31, 2019 Assets eBook Print ur References 0 Total assets 0 Liabilities Total liabilities Equity Total liabilities and equity 2 677 684 Miscellaneous expenses Repairs expense-Computer Totals 250 775 $ 101,544 $101,544 20 points Business Solutions had the following transactions and events in December 2019. Dec. eBook 2 Paid $995 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 $4,150 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 $100 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 $1,400 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- Took the week off for the holidays. 26 28 Received $3,500 cash from Gomez Co. on its receivable. 29 Reimbursed 5. Rey for business automobile mileage (400 miles at $0.28 per mile). 31 S. Rey withdrew $1,300 cash from the company for personal use. Print References 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 $100 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 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, 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 owner's equity for the three months ended December 31, 2019. 6. Prepare a balance sheet as of December 31, 2019. Complete this question by entering your answers in the tabs below. 2 Reg 1 Reg 2A Reg 2B Req 2B Reg 3 Reg 4 Req 5 Reg 6 Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger. 20 points Cash Accounts Receivable Debit Credit Date Debit Credit Date Dec. 01 Balance 38,664 Balance 13,518 Dec. 01 eBook Print References Computer Supplies Debit Credit Prepaid Insurance Deb Credit Date Balance 2,645 Date Dec. 01 Balance 1.980 Dec. 01 Prepaid Rent Debit Credit Office Equipment Debit Credit Date Balance 3,260 Date Dec. 01 Balance 9,000 Dec. 01 Accumulated Depreciation-Office Equipment Date Debit Credit Balance Computer Equipment Debit Credit Date Balance 2. 20 points Accumulated Depreciation-Computer Equipment Date Debit Credit Balance Accounts Payable Debit Credit Balance Date Dec. 01 Dec. 01 0 0 eBook Wages Payable Debit Credit Unearned Computer Services Revenue Debit Credit Balance Date Balance Date Print Dec. 01 0 Dec. 01 0 References S. Rey, Capital Debit S. Rey, Withdrawals Debit Credit Credit Balance Date Dec. 01 Date Dec. 01 Balance 6.200 73.000 Computer Services Revenue Debit Credit Depreciation Expense-Office Equipment Debit Credit Balance Date Date Balance 28,544 Dec. 01 Dec. 01 0 Depreciation Expense-Computer Equipment Date Debit Credit Balance Dec. 01 Wages Expense Debit Credit Date Dec. 01 Balance 2,600 0 2 Depreciation Expense-Computer Equipment Date Debit Credit Balance Dec. 01 Wages Expense Debit Credit Date Balance 2,600 0 Dec. 01 20 points eBook Insurance Expense Debit Credit Rent Expense Debit Credit Date Balance Date Balance Dec. 01 0 Dec. 01 0 Print References Computer Supplies Expense Debit Advertising Expense Debit Credit Date Credit Balance Date Dec. 01 Balance 1.628 Dec. 01 0 Mileage Expense Debit Credit Miscellaneous Expenses Debit Credit Date Date Balance 624 Balance 250 Dec. 01 Dec. 01 Repairs Expense - Computer Debit Credit Date Dec. 01 Balance 775 2 BUSINESS SOLUTIONS Adjusted Trial Balance December 31, 2019 Account Title Debit Credit 20 points Cash Accounts receivable eBook Print References Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciationOffice equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable Wages payable Unearned computer services revenue S. Rey, Capital S. Rey, Withdrawals Computer services revenue Depreciation expense-Office equipment Depreciation expenseComputer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer Totals $ 0 $ 0 2. Prepare an income statement for the three months ended December 31, 2019. BUSINESS SOLUTIONS 20 points Income Statement For Three Months Ended December 31, 2019 Revenue eBook Expenses Print References Total expenses 2 a. mne computer system, dcquireu on Clover I, is expecteu lo dve d lour-yer le with no Salvdye 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 have expired. 20 points 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 owner's equity for the three months ended December 31, 2019. 6. Prepare a balance sheet as of December 31, 2019. eBook Print Complete this question by entering your answers in the tabs below. References Reg 1 Reg 2A Reg 2B Reg 3 Reg 4 Reg 5 Reg 6 Prepare a statement of owner's equity for the three months ended December 31, 2019. BUSINESS SOLUTIONS Statement of Owner's Equity For Three Months Ended December 31, 2019 S. Rey, Capital, October 1, 2019 0 S. Rey, Capital, December 31, 2019 $ 0 2 Reg 1 Reg 2A Reg 2B Reg 3 Reg 4 Reg 5 Reg 6 Prepare a balance sheet as of December 31, 2019. 20 points BUSINESS SOLUTIONS Balance Sheet December 31, 2019 Assets eBook Print ur References 0 Total assets 0 Liabilities Total liabilities Equity Total liabilities and equity