Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Prompt: Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger. After the success of the

Prompt: Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger.
image text in transcribed
image text in transcribed
After the success of the company's first two months, Santana Rey 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. Business Solutions had the following transactions and events in December 2021. December 2 Paid $1,025 cash to Hiliside Mall for Dusiness solutions's share of mall advertising costs. December 3 Paid $500 cash for minor repafra to the company' n computer. December 4 Received $3,950 cash from Nlex's Engineering Company for the recelvable from kovenber. December 10 paid cash to tyn Addie for 81x days of work at the rate of $125 per day. December 14 Notified by Alex's Engineering Company that Businesa solutions's bid of $7,000 on a proposed project has been accepted. Alex's paid a $1,500 canh advance to Business solut fons. Decenber 15 Purchasod $1,100 of computer nupplies on credit from Harris office'Products . December 16 sent a reninder to Gomez Company to pay the fee for services recorded on ioverber 3 . Deceaber 20 Completed a project for tila Corporation and received 55,625 cash. December 22-26. Took the week off for the holidays. December 28 Received $3,000 cash from Gomez Company on its receivable. Decomber 29 . Reimbursed S. Fey for buninesn automobile mileage ( 600miles at 50.32 per mile). December 31 Paid $1,500 cash' for 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 have expired. Required: 1. Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger. 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental Accounting Principles

Authors: Kermit D. Larson, John J Wild, Barbara Chiappetta

17th Edition

0072946601, 9780072946604

More Books

Students also viewed these Accounting questions

Question

=+Explain the skills needed to create a sustainable personal bran

Answered: 1 week ago