After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30, 2017, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2017) follows No. Credit Debit $38, 264 12.618 2.545 2,220 3,300 8,000 167 20,000 236 Account Title 101 Cash 106 Accounts receivable 126 Computer supplies 128 Prepaid insurance 131 Prepaid rent 163 Office equipment Accumulated depreciation- Office equipment Computer equipment 168 Accumulated depreciation- Computer equipment 201 Accounts payable 210 Wages payable Unearned computer services revenue 307 Common stock 318 Retained earnings 319 Dividends 403 Computer services revenue Depreciation expense-Office equipment Depreciation expense-Computer equipment 623 Wages expense 637 Insurance expense 640 Rent expense 652 Computer supplies expense 655 Advertising expense 676 Mileage expense 677 Miscellaneous expenses 684 Repairs expense-Computer Totals 73,000 5,600 25,659 612 613 2,625 1,728 25e 885 $98,659 $98,659 Business Solutions had the following transactions and events in December 2017 Dec. 2 Paid $1,025 cash to Hillside Mall for Business Solutions share of mall advertising costs. 3 Paid $500 cash for minor repairs to the company's computer. 4 Received $3,950 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 $125 per day. 14 Notified by Alex's Engineering Co. that Business Solutions bid of $7,000 on a proposed project has been accepted. Alex's paid a $1,500 cash advance to Business Solutions 15 Purchased $1,100 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 20 Completed a project for Liu Corporation and received $5,625 cash. 22-26 Took the week off for the holidays. 28 Received $3,000 cash from Gomez Co. on its receivable. 29 Reimbursed S. Rey for business automobile mileage (600 miles at $2.32 per mile). 31 The company paid $1,500 cash in dividends. 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 $580 still available. b. Three months have expired since the 12-month insurance premium was paid in advance. 2.b. Post the journal entries to record each of the December transactions, adjusting entries to the accountsi ledger 3. Prepare an adjusted trial balance as of December 31, 2017 4. Prepare an income statement for the three months ended December 31, 2017 5. Prepare a statement of retained earnings for the three months ended December 31, 2017 6. Prepare a balance sheet as of December 31, 2017 7. Record and post the necessary closing entries as of December 31, 2017 8. Prepare a post-closing trial balance as of December 31 2017 Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req3 Re4 Req5 Reg 6 Req7 Reg 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.) Show less Date General Journal Debit Credit Dec 02 Advertising expense 1,025 Cash 1,025 No Dec 03 500 Repairs expense Computer Cash 500 Dec 04 3,950 Cash Accounts receivable 3.950 Dec 10 Wages expense Cash 7507 5 Dec 14 1,500 Cash Unearned computer services revenue 1.500 Dec 15 Computer supplies Accounts payable sssssssssssssssssss 1.100 Dec 16 No journal entry required Dec 20 5.625 Cash Computer services revenue 5.625 Dec 28 Cash Accounts receivable 3,000 Dec 29 Mileage expense Cash 1977 Dec 31 Dividends Cash 1,500 1.500 Rec Reg 2A > LU ILLLILU U Luan L. LU.VI ALS ULLAYUU UL. 29 Reimbursed S. Rey for business automobile mileage (600 miles at $0.32 per mile). 31 The company paid $1,500 cash in dividends. 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 $580 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 $125 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 has 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, 2017 4. Prepare an income statement for the three months ended December 31, 2017 5. Prepare a statement of retained earnings for the three months ended December 31, 2017 6. Prepare a balance sheet as of December 31, 2017 7. Record and post the necessary closing entries as of December 31, 2017 8. Prepare a post-closing trial balance as of December 31, 2017 Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Prepare adjusting entries to reflect a through f. No Transaction General Journal 1 a. Computer supplies expense Computer supplies Credit Debit 3,065 3,065 2 b. 555 Insurance expense Prepaid insurance ssssss 555 3 C. 500 Wages expense Wages payable Wages pavable d. Depreciation expense-Computer equipment 1.250 5 . Depreciation expense-Office equipment Accumulated depreciation Office equipment 6 1 Rent expense Prepaid rent 2,475) Keq i keq ZA Req 25 Reqs Req 4 keq keq keq / keq 8 Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger. Date Dec. 01 Dec. 04 Dec. 28 Accounts Receivable Debit Credit Balance 12.618 3 .950 8.668 3,0005 ,668 Date Dec. 01 Dec 02 Dec. 03 Dec. 04 Dec. 10 Dec. 14 Dec. 20 Dec. 28 Dec. 29 Dec. 31 Cash Debit Credit Balance 38.264 1,025737,239 500 36,739 3,950 40.689 75039,939 41,439 5,625 47,064 3,000 50.064 1927l 49,872 1,500 48,372 1.500 Prepaid Insurance Debit Credit Computer Supplies Date Debit Credit Dec, 01 1 Dec. 151 ,100 Dec. 31 3,0657 Balance 2,545 3,645 580 Date Dec. 01 Dec. 31 Balance 2.220 1,665 555 Prepaid Rent Debit Credit Office Equipment Debit Credit Date Dec. 01 Dec. 31 Balance 3.300 8 25 Date Dec. 01 Balance 8.000 2. 47 Accumulated Depreciation Office Equipment Date Debit Credit Balance Dec, 01 0 Dec. 31 400 400 Computer Equipment Debit Credit Date Dec 01 Balance 20.000 Accumulated Depreciation Computer Equipment Date Debit Credit Balance Dec. 01 Dec. 31 1,250 1,250 Accounts Payable Debit Credit Balance 0 Date Dec. 01 Dec. 15 1.100 1.100 Wages Payable Debit Credit Date Dec. 01 Dec. 31 Balance 0 500 1 Unearned Computer Services Revenue Date Debit Credit Balance Dec. 01 Dec. 14 1,500 1,500 500 Common Stock Debit Credit Retained Earnings Debit Credit Balance Date Dec, 01 Balance 73.000 Date Dec, 01 Dec. 31 1 4,460 14,460 Common Stock Debit Credit Retained Earnings Debit Credit Balance Date Dec. 01 Balance 73.000 Date Dec. 01 Dec. 31 1 4,46014,460 Dividends Debit Credit Date Dec. 01 Balance 5,600 7,100 Computer Services Revenue Date Debit Credit Balance Dec. 01 25.659 Dec. 20 5 ,62531,284 31,284 31 284 1,500 Depreciation Expense-Office Equipment Date Debit Credit Balance Dec. 01 Dec. 31 4 00 400 Depreciation Expense-Computer Equipment Date Debit Credit Balance Dec. 01 1,250 (1,250) O Wages Expense Debit Credit Balance Date Dec. 01 Dec. 10 Dec. 31 Balance 2.625 3,375 3.875 3,875 Insurance Expense Date Debit Credit Dec, 01 1 Dec. 31555 5 7 50 500 55 Rent Expense Debit Credit Date Dec. 01 Dec. 31 Balance 0 2.475 Computer Supplies Expense Date Debit Credit Balance Dec. 01 Dec. 31 3,065 (3,065) 2,475 Advertising Expense Debit Credit Mileage Expense Debit Credit Date Dec. 01 Dec. 02 Balance 1.728 2,753 Date Dec. 01 Dec. 29 Balance 704 896 1,025 192 Date Dec. 01 Dec. 31 Miscellaneous Expense Debit Credit Balance 250 2500 Repairs Expense Computer Date Debit Credit Balance Dec. 01 805 Dec. 03 5 00 1,305 Income Summary Date Debit Credit Dec. 3114,460 Balance (14.460) 4. Fire Guy Lawy 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, 2017 4. Prepare an income statement for the three months ended December 31, 2017 5. Prepare a statement of retained earnings for the three months ended December 31, 2017 6. Prepare a balance sheet as of December 31, 2017 7. Record and post the necessary closing entries as of December 31, 2017 8. Prepare a post-closing trial balance as of December 31, 2017 Complete this question by entering your answers in the tabs below. Req 7 Req 8 Req 1 Req 2A Req 2B Req3 Req 4 Req5 Reg 6 Prepare an adjusted trial balance as of December 31, 2017. BUSINESS SOLUTIONS Adjusted Trial Balance December 31, 2017 Account Title Debit Credit Cash 48,372 Accounts receivable 5,668 Computer supplies 580 Prepaid insurance 1,6657 Prepaid rent 825 Office equipment 8,000 Accumulated depreciation Office 400 equipment Computer equipment 20,000 Accumulated depreciation Computer 1,2500 equipment Accounts payable 1.100 Wages payable Unearned computer services revenue 1,500 Common stock 73,000 Retained earnings Dividends 7.100 Computer services revenue 31,284 Depreciation expense-Office 400 equipment Depreciation expense-Computer equipment 1,250 Wages expense 3.875 Insurance expense 555 Rent expense 2.475 Computer supplies expense Advertising expense 2,753 Mileage expense Miscellaneous expenses 250 Repairs expense-Computer 1,305 Totals 105.969 109,034 500 896 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 $580 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 $125 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 has 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, 2017 4. Prepare an income statement for the three months ended December 31, 2017 5. Prepare a statement of retained earnings for the three months ended December 31, 2017 6. Prepare a balance sheet as of December 31, 2017 7. Record and post the necessary closing entries as of December 31, 2017 8. Prepare a post-closing trial balance as of December 31, 2017 X Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req3 Req 4 Req 5 Req 6 Req 7 Req 8 Prepare an income statement for the three months ended December 31, 2017. BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2017 Revenue Computer services revenue $ 31,284 Expenses Depreciation expense-Office s 400 equipment Depreciation expense-Computer 1,250 equipment Wages expense 3,875 Insurance expense Rent expense Computer supplies expense 3,065 Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer 1,305 522 2.475 ssssssss 250 Total expenses Net income 16.824 $ 14,4607 lo Para casn to Lyn Adole Tor six days or work at the rate or >12 per day. 14 Notified by Alex's Engineering Co. that Business Solutions' bid of $7,000 on a proposed project has been accepted. Alex's paid a $1,500 cash advance to Business Solutions. 15 Purchased $1,100 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 Completed a project for Liu Corporation and received $5,625 cash. 22-26 Took the week off for the holidays. 28 Received $3,000 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 $1,500 cash in dividends. 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 $580 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 $125 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. Three of the four months' prepaid rent has 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, 2017 4. Prepare an income statement for the three months ended December 31, 2017 5. Prepare a statement of retained earnings for the three months ended December 31, 2017 6. Prepare a balance sheet as of December 31, 2017 7. Record and post the necessary closing entries as of December 31, 2017 8. Prepare a post-closing trial balance as of December 31, 2017 x Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req3 Req 4 Req 5 Req6 Req 7 Req8 Prepare a statement of retained earnings for the three months ended December 31, 2017 BUSINESS SOLUTIONS Statement of Retained Earnings For Three Months Ended December 31, 2017 Retained earnings, October 1, 2017 $ Add: Net Income 14,460 14,460 Less: Dividends 7.100 Retained earnings, December 31, 2017 $ 7,360 a. The December 31 inventory count of computer supplies shows $580 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 $125 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. Three of the four months prepaid rent has 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 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, 2017 4. Prepare an income statement for the three months ended December 31, 2017 5. Prepare a statement of retained earnings for the three months ended December 31, 2017 6. Prepare a balance sheet as of December 31, 2017 7. Record and post the necessary closing entries as of December 31, 2017 8. Prepare a post-closing trial balance as of December 31, 2017 X Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req3 Re4 Req 5 Req 6 Req7 Reg 8 Prepare a balance sheet as of December 31, 2017. 48,372 5.668 1.66 8257 7,600 BUSINESS SOLUTIONS Balance Sheet December 31, 2017 Assets Cash Accounts receivable Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciation-Office (400 equipment Computer equipment 20,000/ Accumulated depreciation- Computer equipment Total Assets Liabilities Accounts payable Wages payable Unearned computer services revenue Total Liabilities Equity Common stock Retained earnings Total Liabilities and Equity SUSSOS so 18.750 83.460 $ 1,100 500 1,500 3.100 73,000 7.360 $83.460 Red 7 > I a. The December 31 inventory count of computer supplies shows $580 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 $125 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. Three of the four months prepaid rent has 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 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, 2017 4. Prepare an income statement for the three months ended December 31, 2017 5. Prepare a statement of retained eamings for the three months ended December 31, 2017 6. Prepare a balance sheet as of December 31, 2017 7. Record and post the necessary closing entries as of December 31, 2017 8. Prepare a post-closing trial balance as of December 31, 2017 X Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req3 Req 4 Req 5 Req 6 Req 7 Req 8 Record and post the necessary closing entries as of December 31, 2017. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Show less No Date General Journal Debit Credit 1 Dec. 31 Computer services revenue 31,284 Income summary 31,284 Dec 31 16.824 Income summary 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 sssssssssssssssss 1,305 Dec. 31Income summary Retained earnings 14.460 Dec. 31 7.100 7.100 Retained earnings Dividends 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 $580 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 $125 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. Three of the four months prepaid rent has 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 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, 2017 4. Prepare an income statement for the three months ended December 31, 2017 5. Prepare a statement of retained earnings for the three months ended December 31, 2017 6. Prepare a balance sheet as of December 31, 2017 7. Record and post the necessary closing entries as of December 31, 2017 8. Prepare a post-closing trial balance as of December 31, 2017 X Answer is not complete. Complete this question by entering your answers in the tabs below. Req 7 Reg 8 Req 1 Req 2A Req 2B Req3 Req 4 Req 5 Req 6 Prepare a post-closing trial balance as of December 31, 2017 Credit BUSINESS SOLUTIONS Post-Closing Trial Balance December 31, 2017 Debit Cash $ 48,372 Accounts receivable 5,668 Computer supplies Prepaid insurance Prepaid rent Office equipment 8.000 Accumulated depreciation Office equipment Computer equipment Accumulated depreciation Computer equipment Accounts payable Wages payable Unearned computer Services revenue Common stock Retained earnings Totals $ 85, 110 400 1.250 1,100/ 500 1,500 73,000 7,360 $ 85,110
