Have completed the assignment, but I seem to have problems with questions 5,6,7, seems like I can't get the adjusted trial balance to balance as a result the balances seems to be off. I suspect it could be because one of my entries is not entered correctly. Same with my income statement calculation as well as the balances between the assets and liabilities on the classified balance sheet.

After the success of its first two months, John Smith has decided to continue operating Smith Systems.

Below is the Trial Balance as at November 30, 2017:

Smith Systems

Trial Balance

November 30, 2017

Debits Credits

101 Cash 4,665.00

106 Accounts Receivable 14,130.00

126 Computer Supplies 3,750.00

128 Prepaid Insurance 14,400.00

131 Prepaid Rent 11,880.00

163 Office Equipment 19,800.00

167 Computer Equipment 11,520.00

201 Accounts Payable 0.00

301 John Smith, Capital 86,320.00

302 John Smith, Withdrawals 8,000.00

403 Computer Services Revenue 25,720.00

623 Wages Expense 10,070.00

655 Advertising Expense 3,100.00

676 Mileage Expense 3,600.00

684 Repairs Expense, Computer 125.00

699 Charitable Donations Expense 7,000.00

112,040.00 112,040.00

Before proceeding in December, John adds these new accounts to the chart of accounts for

the ledger:

Account No.

Accumulated Depreciation, Office Equipment 164

Accumulated Depreciation, Computer Equipment 168

Wages Payable 210

Unearned Computer Services Revenue 236

Depreciation Expense, Office Equipment 612

Depreciation Expense, Computer Equipment 613

Insurance Expense 637

Rent Expense 640

Computer Supplies Expense 652

Required

1. Make journal entries to record each of the following transactions for Peter Systems.

2. Post the entries to the accounts in the ledger.

Dec. 3 Paid $3,600 to the Mayfair Mall for the company's share of mall

advertising costs for December.

3 Paid $265 to repair the company's computer.

4 Received the balance owing from Sopher's Electrical is $9,500.

10 Paid Anne Stafford for seven days' work at the rate of $265 per day.

14 Notified by Sopher's Electrical that John's bid of $12,340 on a proposed

project was accepted.Reynolds paid an advance of $5,340.

17 Purchased $1,950 of computer supplies on credit from Kensington Supplies.

18 Sent a reminder to Papier Inc. to pay the $1,850 originally

recorded on November 8.

20 Completed a project for the County of Redwater and received $3,800 cash.

24-28 Took the week off for the holidays.

31 Received $1,000 as partial payment from Papier Inc.

31 Reimbursed John Smith's business automobile expenses of 1,240 kilometres

at $2.00 per kilometre.

31 John Smith withdrew $2,500 cash from the business.

Required:

3. Make adjusting entries to record the following additional information collected on December 31, 2017.

4. Post the entries to the accounts in the ledger.

Dec. 31 a. The December 31 inventory of computer supplies was $675.

b. Three months have passed since the annual insurance premium was paid.

c.As of the end of the year, Anne Stafford has not been paid for 9 days of

work at the rate of $265 per day.

d. The computer equipment is expected to have a two-year life with no

residual value.

e. The office equipment is expected to have a five-year life with no

residual value.

f. Prepaid rent for three of the six months has expired.

Required:

5.Make adjusted trial balance as of December 31, 2017.

6.Make income statement and statement of changes in owners equity for the three months

ended December 31, 2017.

7.Make classified balance sheet as of December 31, 2017.

8.Calculate the Liquidity Ratios for Working Capital and the Current Ratio and compare

to the Industry Standard of 3:1 for the Current Ratio