Question
I need help to check my work for parts 5, 6, 7, 8 I cannot get them to balance and I am not sure where
I need help to check my work for parts 5, 6, 7, 8 I cannot get them to balance and I am not sure where I went wrong.
unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2021) follows.
Number | Account Title | Debit | Credit |
---|---|---|---|
101 | Cash | $ 38,864 | |
106 | Accounts receivable | 13,018 | |
126 | Computer supplies | 2,645 | |
128 | Prepaid insurance | 1,860 | |
131 | Prepaid rent | 2,960 | |
163 | Office equipment | 8,900 | |
164 | Accumulated depreciationOffice equipment | $ 0 | |
167 | Computer equipment | 21,200 | |
168 | Accumulated depreciationComputer equipment | 0 | |
201 | Accounts payable | 0 | |
210 | Wages payable | 0 | |
236 | Unearned computer services revenue | 0 | |
307 | Common stock | 70,000 | |
318 | Retained earnings | 0 | |
319 | Dividends | 6,400 | |
403 | Computer services revenue | 31,579 | |
612 | Depreciation expenseOffice equipment | 0 | |
613 | Depreciation expenseComputer equipment | 0 | |
623 | Wages expense | 2,525 | |
637 | Insurance expense | 0 | |
640 | Rent expense | 0 | |
652 | Computer supplies expense | 0 | |
655 | Advertising expense | 1,628 | |
676 | Mileage expense | 634 | |
677 | Miscellaneous expenses | 210 | |
684 | Repairs expenseComputer | 735 | |
901 | Income summary | 0 | |
Totals | $ 101,579 | $ 101,579 |
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 $430 cash for minor repairs to the companys computer. |
December 4 | Received $4,350 cash from Alexs Engineering Company for the receivable from November. |
December 10 | Paid cash to Lyn Addie for six days of work at the rate of $125 per day. |
December 14 | Notified by Alexs Engineering Company that Business Solutions's bid of $7,900 on a proposed project has been accepted. Alexs paid a $1,500 cash advance to Business Solutions. |
December 15 | Purchased $1,400 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 $5,625 cash. |
December 22-26 | Took the week off for the holidays. |
December 28 | Received $3,100 cash from Gomez Company on its receivable. |
December 29 | Reimbursed S. Rey for business automobile mileage (600 miles at $0.31 per mile). |
December 31 | Paid $1,300 cash for dividends. |
The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the companys first three months.
- The December 31 inventory count of computer supplies shows $640 still available.
- Three months have expired since the 12-month insurance premium was paid in advance.
- As of December 31, Lyn Addie has not been paid for four days of work at $125 per day.
- The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.
- The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.
- Three of the four months' prepaid rent have expired.
Parts:
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.
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