Question
Please help with part 1, 2, 3, 4. I keep getting the the totals wrong and do not know where I am going wrong! Thanks
Please help with part 1, 2, 3, 4. I keep getting the the totals wrong and do not know where I am going wrong! Thanks for the help and explanation.
Star City continues to operate Business Solutions. The November 30, 2021, 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 Oak 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 Cameron's Engineering 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 Camerons Engineering Company that Business Solutions's bid of $7,900 on a proposed project has been accepted. Camerons paid a $1,500 cash advance to Business Solutions. |
December 15 | Purchased $1,400 of computer supplies on credit from Kady 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 Lucky Corporation and received $5,625 cash. |
December 22-26 | Took the week off for the holidays. |
December 28 | Received $3,100 cash from Stickies Company on its receivable. |
December 29 | Reimbursed Sky 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.
Required:
1. Prepare journal entries to record each of the December transactions
2-a. Prepare adjusting entries
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, 2021.
4. Prepare the income statement for the three months that ends December 31, 2021.
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