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No. Account Title Debit Credit 101 Cash $ 39,064 106 Accounts receivable 12,818 126 Computer supplies 2,645 128 Prepaid insurance 1,920 131 Prepaid rent 3,060
No. | Account Title | Debit | Credit | |||
101 | Cash | $ | 39,064 | |||
106 | Accounts receivable | 12,818 | ||||
126 | Computer supplies | 2,645 | ||||
128 | Prepaid insurance | 1,920 | ||||
131 | Prepaid rent | 3,060 | ||||
163 | Office equipment | 8,900 | ||||
164 | Accumulated depreciationOffice equipment | $ | 0 | |||
167 | Computer equipment | 21,600 | ||||
168 | Accumulated depreciationComputer equipment | 0 | ||||
201 | Accounts payable | 0 | ||||
210 | Wages payable | 0 | ||||
236 | Unearned computer services revenue | 0 | ||||
307 | Common stock | 69,000 | ||||
318 | Retained earnings | 0 | ||||
319 | Dividends | 6,500 | ||||
403 | Computer services revenue | 33,029 | ||||
612 | Depreciation expenseOffice equipment | 0 | ||||
613 | Depreciation expenseComputer equipment | 0 | ||||
623 | Wages expense | 2,325 | ||||
637 | Insurance expense | 0 | ||||
640 | Rent expense | 0 | ||||
652 | Computer supplies expense | 0 | ||||
655 | Advertising expense | 1,638 | ||||
676 | Mileage expense | 624 | ||||
677 | Miscellaneous expenses | 210 | ||||
684 | Repairs expenseComputer | 725 | ||||
Totals | $ | 102,029 | $ | 102,029 | ||
Business Solutions had the following transactions and events in December 2017.
Dec. | 2 | Paid $950 cash to Hillside Mall for Business Solutions share of mall advertising costs. | |
3 | Paid $420 cash for minor repairs to the companys computer. | ||
4 | Received $4,850 cash from Alexs Engineering Co. for the receivable from November. | ||
10 | Paid cash to Lyn Addie for six days of work at the rate of $105 per day. | ||
14 | Notified by Alexs Engineering Co. that Business Solutions bid of $7,900 on a proposed project has been accepted. Alexs paid a $1,600 cash advance to Business Solutions. | ||
15 | Purchased $2,000 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 $5,975 cash. | ||
2226 | Took the week off for the holidays. | ||
28 | Received $3,300 cash from Gomez Co. on its receivable. | ||
29 | Reimbursed S. Rey for business automobile mileage (400 miles at $0.23 per mile). | ||
31 | The company paid $1,300 cash in 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 $670 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 $105 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 has expired
Prepare an income statement for the three months ended December 31, 2017.
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