Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
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. Business Solutions had the following transactions and events in December 2021. Decenber 2 Paid $1,020 cash to Billside Mall for Business Solutions's share of mall advertising costs. Decenber 3 Paid $410 cash for minor repairs to the company's computer. December 4 Received $4,950 cash fron Alex's Engineering Company for the receivable fron Novenber. Decenber 10 Paid cash to Lyn Addie for 81x days of work at the rate of $100 per day. December 14 Notified by Alex's Engineering Conpany that Dusiness solutions's bid of $7,500 on a proposed project ho been accepted. Alex's paid a $1,900 cash advance to Business solutions. December 15 Purchased $1,600 of computer supplies on credit from Harris office Products. Decenber 16 Sent a reminder to Gomez Conpany to pay the fee for services recorded on liovember 8 . December 20 Conpleted a project for Liu Corporation and received $5,775 cash. Decenber 22-26 Took the week of for the holldays. December 28 Received $4,000 cash froe comez conpany on ita receivable. December 29 Reimbursed S. Rey for business automobile mileage ( 500 miles at $0.24 per mile). Decenber 31 paid $1,200 cash for dividendi. 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 $660 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. Post those entries to the accounts in the ledger. 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. 4. Prepare an income statement for the three months ended December 31, 2021. 5. Prepare a statement of retained earnings for the three months ended December 31,2021. 6. Prepare a classified balance sheet as of December 31,2021. 7. Record the necessary closing entries as of December 31, 2021. 8. Prepare a post-closing trial balance as of December 31, 2021. Prepare adjusting entries to reflect a through f. Note: If no entry is required for a transaction or event, select "No fournal entry required" in the first account field. Journal entry worksheet 456 The December 31 inventory count of computer supplies shows $660 still avallable. Hote: Enter debits before credas

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Government And Not For Profit Accounting

Authors: Martin Ives, Joseph R. Razek, Gordon A. Hosch

5th Edition

0130464147, 978-0130464149

More Books

Students also viewed these Accounting questions

Question

=+Is the humor appropriate for the organization?

Answered: 1 week ago