Check my v 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. Credit Debit $ 38,364 13,318 2,645 2,100 3,200 8,500 Office $ 0 24,000 0 No. 101 106 126 128 131 163 164 164 10 167 160 168 201 210 236 307 318 319 403 612 012 613 2 623 637 640 652 655 676 677 684 Account Title Cash Accounts receivable Computer supplies Prepaid insurance Prepaid rent equipment Accumulated depreciation Office equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable Wages payable Unearned computer services revenue Common stock Retained earnings Dividends 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 0 67,000 0 6,100 37,049 0 2,475 0 0 a 1,628 704 220 795 $104,049 $104,049 Business Solutions had the following transactions and events in December 2019. Der. 2 Paid $955 cash to Hillside Mall for Business Solutions' share of mall advertising costs. 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 $4,250 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 $110 per day. 14 Notified by Alex's Engineering Co. that Business Solutions bid of $7,900 on a proposed project has been accepted. Alex's paid a $1,900 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 a project for Liu Corporation and received $5,725 cash. 22- Took the week off for the holidays. 26 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 $1,200 cash in dividends. Completed 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 $110 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 from Requirement 1 and adjusting entries from Requirement 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 $110 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 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. Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Req 2B Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 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.) Chec Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3 Reg 4 Reg 5 Reg 6 Req 7 Req 8 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 View journal entry worksheet No Date General Journal Debit Credit 1 Dec 02 955 Advertising expense Cash 955 c 2 Dec 03 Repairs expense-Computer 430 Cash 430 3 Dec 04 Cash 4,250 Accounts receivable 4,250 . 4 Dec 10 660 Wages expense Cash 660 5 Dec 14 Cash 1,900 Unearned computer services revenue 1,900 4 Dec 10 660 Wages expense Cash 660 5 5 Dec 14 Cash 1,900 Unearned computer services revenue 1,900 6 Dec 15 1,400 Computer supplies Accounts payable 1,400 7 Dec 16 No journal entry required 8 Dec 20 Cash 5,725 Computer services revenue 5,725 9 Dec 28 Cash 3,900 Accounts receivable 3,900 10 Dec 29 192 Mileage expense Cash 192 11 Dec 31 1,200 Dividends Cash 1,200 Reg 1 Req 2A > Reg 1 Req 2A Req 2B Req 3 Reg 4 Reg 5 Reg 6 Req 7 Req 8 Prepare adjusting entries to reflect a through f. View transaction list View journal entry worksheet No Transaction General Journal Debit Credit 1 3,425 Computer supplies expense Computer supplies 3,425 2 b. 525 Insurance expense Prepaid insurance 525 3 C. 440 Wages expense Wages payable 440 4 d. 1,500 Depreciation expense Computer equipment Accumulated depreciation-Computer equipment 1,500 5 e. 425 Depreciation expense-Office equipment Accumulated depreciation - Office equipment 425 6 f. Rent expense 2,400 Prepaid rent 2,400 Reg 1 Reg 2B > 126: Computer Supplies Debit Credit 128: Prepaid Insurance Debit Credit Date Balance 2,645 Date Dec. 01 Dec. 01 Balance 2,100 1,575 Dec. 15 1,400 Dec 31 Adj. 525 4,045 620 Dec 31 Adj. 3,425 131: Prepaid Rent Debit Credit 163: Office Equipment Debit Credit Date Date Balance Balance 3,200 Dec. 01 8,500 Dec. 01 Dec 31 Adj. 2,400 800 164: Accumulated Depreciation Office Equipment Date Debit Credit Balance Dec. 01 167: Computer Equipment Debit Credit Date Balance 0 Dec. 01 24,000 Dec 31 Adj. 425 425 168: Accumulated Depreciation Computer Equipment Date Debit Credit Balance Dec. 01 201: Accounts Payable Debit Credit Date Balance 0 Dec. 01 0 Dec 31 Adj. 1,500 1,500 Dec. 15 1,400 1,400 210: Wages Payable Debit Credit Balance Date Dec. 01 Dec 31 Adj. 236: Unearned Computer Services Revenue Date Debit Credit Balance Dec. 01 0 Dec. 14 1,900 1,900 440 440 307: Common Stock Debit Credit 318: Retained Earnings Debit Credit Date Balance Date Balance Dec. 01 67,000 Dec. 01 0 Dec. 31 Close 7,300 (7,300) 319: Dividends Debit Credit 403: Computer Services Revenue Debit Credit Date Balance Date Balance Dec. 01 Dec. 01 6,100 7,300 37,049 42,774 Dec. 31 1,200 Dec. 20 5,725 Dec. 31 Close 7,300 0 Dec. 31 Close 42,774 0 612: Depreciation Expense-Office Equipment Date Debit Credit Balance Dec. 01 613: Depreciation Expense-Computer Equipment Date Debit Credit Balance Dec. 01 0 0 Dec 31 Adj. 425 425 Dec 31 Adj. 1,500 1,500 Dec. 31 Close 425 0 Dec. 31 Close 1,500 0 623: Wages Expense Debit Credit 637: Insurance Expense Debit Credit Date Balance Date Balance Dec. 01 0 2,475 3,135 660 Dec. 01 Dec 31 Adj. Dec. 31 Close 525 Dec. 10 Dec 31 Adj. Dec. 31 Close 525 440 3,575 525 0 3,575 0 640: Rent Expense Debit Credit 652: Computer Supplies Expense Debit Credit Date Balance U Date Balance 0 0 Dec. 01 Dec 31 Adj. Dec. 31 Close 2,400 2,400 Dec. 01 Dec 31 Adj. Dec. 31 Close 3,425 3,425 2,400 0 3,425 0 655: Advertising Expense Debit Credit 676: Mileage Expense Debit Credit Date Date Balance Balance 1,628 Dec. 01 Dec. 01 Dec. 02 Dec. 31 Close 704 896 955 192 2,583 0 Dec. 29 Dec. 31 Close 2,583 896 0 677: Miscellaneous Expense Debit Credit 684: Repairs Expense-Computer Debit Credit Date Balance Date Balance 795 Dec. 01 220 Dec. 01 HAA Dec. 01 0 0 2,400 2,400 Dec 31 Adj. Dec. 31 Close Dec. 01 Dec 31 Adj. Dec. 31 Close 3,425 3,425 0 2,400 0 3,425 655: Advertising Expense Debit Credit 676: Mileage Expense Debit Credit Date Balance 1,628 Date Dec. 01 Dec. 01 Balance 704 896 Dec. 02 955 2,583 192 Dec. 29 Dec. 31 Close Dec. 31 Close 2,583 0 896 0 677: Miscellaneous Expense Debit Credit 684: Repairs Expense-Computer Debit Credit Balance Date Balance Date Dec. 01 Dec. 31 Close 220 795 1,225 220 Dec. 01 Dec. 03 Dec. 31 Close 0 430 1,225 0 901: Income Summary Debit Credit Date Balance Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Req 2B Req 3 Req 4 Req 5 Req 6 Req 7 Reg 8 Prepare an adjusted trial balance as of December 31, 2019. BUSINESS SOLUTIONS Adjusted Trial Balance December 31, 2019 Account Title Debit Credit Cash Accounts receivable Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciationOffice equipment Computer equipment Accumulated depreciationComputer equipment Accounts payable Wages payable Unearned computer services revenue Common stock Retained earnings Prepaid rent Office equipment Accumulated depreciationOffice equipment Computer equipment Accumulated depreciation Computer equipment Accounts payable Wages payable Unearned computer services revenue Common stock Retained earnings Dividends 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 $ 0 Req 1 Req 2A Req 2B Req3 Reg 4 Req 5 Req 6 Req 7 Req 8 Prepare a balance sheet as of December 31, 2019. BUSINESS SOLUTIONS Balance Sheet December 31, 2019 Assets 0 0 Total Assets 0 Liabilities 0 Total Liabilities Equity December 31, 2019 Assets 0 0 Total Assets 0 Liabilities Total Liabilities 0 Equity $ 0 Total equity Total Liabilities and Equity $ 0 Reg 1 Req 2A Req 2B Reg 3 Reg 4 Req 5 Req 6 Req 7 Req 8 Record the necessary closing entries as of December 31, 2019 and then post the closing entries to the general ledger in Requirement 2B. View transaction list Journal entry worksheet Close the revenue account(s). Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31 Record entry Clear entry View general journal Reg 1 Req 2A Req 2B Reg 3 Reg 4 Reg 5 Req 6 Req 7 Req 8 Record the necessary closing entries as of December 31, 2019 and then post the closing entries to the general ledger in Requirement View transaction list Journal entry worksheet Close the expense accounts. Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31 Req 1 Req 2A Req 2B Req 3 Req 4 Reg 5 Reg 6 Req 7 Req 8 Record the necessary closing entries as of December 31, 2019 and then post the closing entries to the general ledger in Requirement 28. View transaction list Journal entry worksheet Close the Income summary account. Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31 Record entry Clear entry View general journal Req 1 Reg 2A Req 2B Reg 3 Reg 4 Req 5 Reg 6 Reg 7 Reg 8 Record the necessary closing entries as of December 31, 2019 and then post the closing entries to the general ledger in Requirement 2 View transaction list Journal entry worksheet Close the Dividends account. Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31 Record entry Clear entry View general journal Reg 1 Reg 2A Req 2B Req3 Req 4 Reg 5 Reg 6 Req 7 Req 8 Prepare a post-closing trial balance as of December 31, 2019. BUSINESS SOLUTIONS Post-Closing Trial Balance December 31, 2019 Debit Credit Cash Accounts receivable 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 Common stock Retained earnings Totals $ 0 $ 0 Reg 1 Req 2A Req 2B Req 3 Reg 4 Reg 5 Reg 6 Req 7 Req 8 Prepare adjusting entries to reflect a through f. View transaction list View journal entry worksheet No Transaction General Journal Debit Credit 1 3,425 Computer supplies expense Computer supplies 3,425 2 b. 525 Insurance expense Prepaid insurance 525 3 C. 440 Wages expense Wages payable 440 4 d. 1,500 Depreciation expense Computer equipment Accumulated depreciation-Computer equipment 1,500 5 e. 425 Depreciation expense-Office equipment Accumulated depreciation - Office equipment 425 6 f. Rent expense 2,400 Prepaid rent 2,400 Reg 1 Reg 2B > 126: Computer Supplies Debit Credit 128: Prepaid Insurance Debit Credit Date Balance 2,645 Date Dec. 01 Dec. 01 Balance 2,100 1,575 Dec. 15 1,400 Dec 31 Adj. 525 4,045 620 Dec 31 Adj. 3,425 131: Prepaid Rent Debit Credit 163: Office Equipment Debit Credit Date Date Balance Balance 3,200 Dec. 01 8,500 Dec. 01 Dec 31 Adj. 2,400 800 164: Accumulated Depreciation Office Equipment Date Debit Credit Balance Dec. 01 167: Computer Equipment Debit Credit Date Balance 0 Dec. 01 24,000 Dec 31 Adj. 425 425 168: Accumulated Depreciation Computer Equipment Date Debit Credit Balance Dec. 01 201: Accounts Payable Debit Credit Date Balance 0 Dec. 01 0 Dec 31 Adj. 1,500 1,500 Dec. 15 1,400 1,400 210: Wages Payable Debit Credit Balance Date Dec. 01 Dec 31 Adj. 236: Unearned Computer Services Revenue Date Debit Credit Balance Dec. 01 0 Dec. 14 1,900 1,900 440 440 307: Common Stock Debit Credit 318: Retained Earnings Debit Credit Date Balance Date Balance Dec. 01 67,000 Dec. 01 0 Dec. 31 Close 7,300 (7,300) 319: Dividends Debit Credit 403: Computer Services Revenue Debit Credit Date Balance Date Balance Dec. 01 Dec. 01 6,100 7,300 37,049 42,774 Dec. 31 1,200 Dec. 20 5,725 Dec. 31 Close 7,300 0 Dec. 31 Close 42,774 0 612: Depreciation Expense-Office Equipment Date Debit Credit Balance Dec. 01 613: Depreciation Expense-Computer Equipment Date Debit Credit Balance Dec. 01 0 0 Dec 31 Adj. 425 425 Dec 31 Adj. 1,500 1,500 Dec. 31 Close 425 0 Dec. 31 Close 1,500 0 623: Wages Expense Debit Credit 637: Insurance Expense Debit Credit Date Balance Date Balance Dec. 01 0 2,475 3,135 660 Dec. 01 Dec 31 Adj. Dec. 31 Close 525 Dec. 10 Dec 31 Adj. Dec. 31 Close 525 440 3,575 525 0 3,575 0 640: Rent Expense Debit Credit 652: Computer Supplies Expense Debit Credit Date Balance U Date Balance 0 0 Dec. 01 Dec 31 Adj. Dec. 31 Close 2,400 2,400 Dec. 01 Dec 31 Adj. Dec. 31 Close 3,425 3,425 2,400 0 3,425 0 655: Advertising Expense Debit Credit 676: Mileage Expense Debit Credit Date Date Balance Balance 1,628 Dec. 01 Dec. 01 Dec. 02 Dec. 31 Close 704 896 955 192 2,583 0 Dec. 29 Dec. 31 Close 2,583 896 0 677: Miscellaneous Expense Debit Credit 684: Repairs Expense-Computer Debit Credit Date Balance Date Balance 795 Dec. 01 220 Dec. 01 HAA Dec. 01 0 0 2,400 2,400 Dec 31 Adj. Dec. 31 Close Dec. 01 Dec 31 Adj. Dec. 31 Close 3,425 3,425 0 2,400 0 3,425 655: Advertising Expense Debit Credit 676: Mileage Expense Debit Credit Date Balance 1,628 Date Dec. 01 Dec. 01 Balance 704 896 Dec. 02 955 2,583 192 Dec. 29 Dec. 31 Close Dec. 31 Close 2,583 0 896 0 677: Miscellaneous Expense Debit Credit 684: Repairs Expense-Computer Debit Credit Balance Date Balance Date Dec. 01 Dec. 31 Close 220 795 1,225 220 Dec. 01 Dec. 03 Dec. 31 Close 0 430 1,225 0 901: Income Summary Debit Credit Date Balance Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Req 2B Req 3 Req 4 Req 5 Req 6 Req 7 Reg 8 Prepare an adjusted trial balance as of December 31, 2019. BUSINESS SOLUTIONS Adjusted Trial Balance December 31, 2019 Account Title Debit Credit Cash Accounts receivable Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciationOffice equipment Computer equipment Accumulated depreciationComputer equipment Accounts payable Wages payable Unearned computer services revenue Common stock Retained earnings Prepaid rent Office equipment Accumulated depreciationOffice equipment Computer equipment Accumulated depreciation Computer equipment Accounts payable Wages payable Unearned computer services revenue Common stock Retained earnings Dividends 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 $ 0 Req 1 Req 2A Req 2B Req3 Reg 4 Req 5 Req 6 Req 7 Req 8 Prepare a balance sheet as of December 31, 2019. BUSINESS SOLUTIONS Balance Sheet December 31, 2019 Assets 0 0 Total Assets 0 Liabilities 0 Total Liabilities Equity December 31, 2019 Assets 0 0 Total Assets 0 Liabilities Total Liabilities 0 Equity $ 0 Total equity Total Liabilities and Equity $ 0 Reg 1 Req 2A Req 2B Reg 3 Reg 4 Req 5 Req 6 Req 7 Req 8 Record the necessary closing entries as of December 31, 2019 and then post the closing entries to the general ledger in Requirement 2B. View transaction list Journal entry worksheet Close the revenue account(s). Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31 Record entry Clear entry View general journal Reg 1 Req 2A Req 2B Reg 3 Reg 4 Reg 5 Req 6 Req 7 Req 8 Record the necessary closing entries as of December 31, 2019 and then post the closing entries to the general ledger in Requirement View transaction list Journal entry worksheet Close the expense accounts. Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31 Req 1 Req 2A Req 2B Req 3 Req 4 Reg 5 Reg 6 Req 7 Req 8 Record the necessary closing entries as of December 31, 2019 and then post the closing entries to the general ledger in Requirement 28. View transaction list Journal entry worksheet Close the Income summary account. Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31 Record entry Clear entry View general journal Req 1 Reg 2A Req 2B Reg 3 Reg 4 Req 5 Reg 6 Reg 7 Reg 8 Record the necessary closing entries as of December 31, 2019 and then post the closing entries to the general ledger in Requirement 2 View transaction list Journal entry worksheet Close the Dividends account. Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31 Record entry Clear entry View general journal Reg 1 Reg 2A Req 2B Req3 Req 4 Reg 5 Reg 6 Req 7 Req 8 Prepare a post-closing trial balance as of December 31, 2019. BUSINESS SOLUTIONS Post-Closing Trial Balance December 31, 2019 Debit Credit Cash Accounts receivable 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 Common stock Retained earnings Totals $ 0 $ 0
