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After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30, 2021, unadjusted trial balance of Business
After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30, 2021, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2021) follows. Number 101 Account Title Cash 106 Accounts receivable 126 Computer supplies 128 Prepaid insurance 131 Prepaid rent 163 Office equipment 164 167 Computer equipment 168 Accumulated depreciation-Office equipment Accumulated depreciation-Computer equipment 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue 301 S. Rey, Capital 302 S. Rey, Withdrawals 403 612 613 623 637 640 Rent expense 652 Computer services revenue Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense Computer supplies expense 655 Advertising expense 676 Mileage expense 677 Miscellaneous expenses 684 Repairs expense-Computer Debit Credit $ 38,764 12,818 2,545 1,920 3,240 8,900 21,600 0 0 0 0 65,000 6,100 36,554 00 2,400 0 0 0 1,678 644 180 765 $ 101,554 $ 101,554 Totals Business Solutions had the following transactions and events in December 2021. December 2 Paid $985 cash to Hillside Mall for Business Solutions's share of mall advertising costs. December 3 Paid $480 cash for minor repairs to the company's computer. December 4 Received $4,750 cash from Alex's Engineering Company for the receivable from November. December 10 Paid cash to Lyn Addie for six days of work at the rate of $105 per day. December 14 Notified by Alex's Engineering Company that Business Solutions's bid of $7,300 on a proposed project has been accepted. Alex's paid a $1,800 cash advance to Business Solutions. December 15 Purchased $1,500 of computer supplies on credit from Harris Office Products. December 16 Sent a reminder to Gomez Company to pay the fee for services recorded on November 8. December 20 Completed a project for Liu Corporation and received $5,825 cash. December 22-26 Took the week off for the holidays. December 20 Completed a project for Liu Corporation and received $5,825 cash. December 22-26 Took the week off for the holidays. December 28 Received $3,900 cash from Gomez Company on its receivable. December 29 Reimbursed S. Rey for business automobile mileage (600 miles at $0.32 per mile). December 31 S. Rey withdrew $1,100 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. a. The December 31 inventory count of computer supplies shows $620 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 $105 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, 2021. Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3 Prepare journal entries to record each of the December transactions and events for Business Solutions. (If no transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Date General Journal 1 Dec 02 Cash Debit Cred 985 Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3 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.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 11 > Paid $985 cash to Hillside Mall for Business Solutions's share of mall advertising costs. Note: Enter debits before credits. General Journal Debit Credit 985 985 Date Dec 02 Cash Accounts receivable Record entry Clear entry View general journal < Required 1 Required 2A > Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3 Prepare adjusting entries to reflect a through f. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3456 The December 31 inventory count of computer supplies shows $620 still available. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Advertising expense 985 Cash 985 Record entry Clear entry View general journal < Required 1 Required 2B > Required 1 Required 2A Required 2B Required 3 Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger. 101: Cash 106: Accounts Receivable Date December 01 Debit Credit Balance Date Debit Credit Balance 38,764 December 01 12,818 Date December 01 126: Computer Supplies Debit Credit Balance Date 2,545 December 01 Date December 01 131: Prepaid Rent Debit Credit Balance 3,240 Date December 01 164: Accumulated Depreciation-Office Equipment 128: Prepaid Insurance Debit Credit Balance 1,920 163: Office Equipment Debit Credit Balance 8,900 167: Computer Equipment 164: Accumulated Depreciation-Office Equipment Date December 01 Debit Credit Balance 0 Date December 01 168: Accumulated Depreciation-Computer Equipment Date December 01 Debit Credit 210: Wages Payable Date Debit December 01 Balance 0 Date December 01 167: Computer Equipment Debit Credit Balance 21,600 201: Accounts Payable Debit Credit Balance 0 236: Unearned Computer Services Revenue Credit Balance 0 Date December 01 301: S. Rey, Capital Date December 01 Debit Date December 01 Debit Credit Balance 0 Credit Balance Date 302: S. Rey, Withdrawals Debit Credit Balance 65,000 December 01 6,100 403: Computer Services Revenue Debit Credit 612: Depreciation Expense-Office Equipment Balance 36,554 Date December 01 613: Depreciation Expense-Computer Equipment Date Debit Credit December 01 Balance 0 Date December 01 Debit Credit Balance 0 623: Wages Expense Debit Credit Balance 2,400 613: Depreciation Expense-Computer Equipment Date December 01 Date December 01 Date December 01 Date December 01 Date December 01 Debit Credit 637: Insurance Expense Debit Balance Date December 01 623: Wages Expense Debit Credit Balance 2,400 Credit Balance 0 Date December 01 640: Rent Expense Debit Credit Balance 0 652: Computer Supplies Expense Debit Credit 676: Mileage Expense Debit Balance 0 Date December 01 Credit Balance 644 Date December 01 684: Repairs Expense - Computer Debit Credit Balance 765 655: Advertising Expense Debit Credit Balance 1,678 677: Miscellaneous Expenses Debit Credit Balance 180 prepare an asjaovou criar porence de VI DOCENDOL way even Cash Accounts receivable BUSINESS SOLUTIONS Adjusted Trial Balance December 31, 2021 Account Title Debit Credit 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 $ 0 69 0
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