Serial Problem Business Solutions LO P1, P2, P3, P4, P5 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. points Debit $ 39, 264 13, 518 2, 545 2,100 3,020 8, 300 Credit No. 101 Cash 16 Accounts receivable 126 Computer supplies 128 Prepaid insurance 131 Prepaid rent 163 Office equipment 164 Accumulated depreciation-Office equipment 167 Computer equipment 168 Accumulated depreciation-Computer equipment 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue 307 Common stock 318 Retained earnings 319 Dividends 403 Computer services revenue 612 Depreciation expense-Office equipment 613 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 Account Title eBook Print 23, 200 72,900 6, 100 31, 899 2,575 1,658 604 785 $103, 899 Totals $103, 899 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 points 3 Paid $440 cash for minor repairs to the company's computer. 4 Received $4,750 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 $120 per day 14 Notified by Alex's Engineering Co. that Business Solutions' bid of $7,400 on a proposed project has been eBook Print References accepted. Alex's paid a $2,200 cash advance to Business Solutions. 15 Purchased $1,900 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 $6, 225 cash 22- Took the week off for the holidays 26 28 Received $3,500 cash from Gomez Co. on its receivable. 29 Reimbursed S. Rey for business automobile mileage (60 miles at $8.39 per mile) 31 The company paid $1,400 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 $650 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 $120 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 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 View transaction list View journal entry worksheet O Transaction General Journal Debit a. Computer supplies expense 3,795 Computer supplies 3,795 Print 2 Insurance expense Prepaid insurance References Wages payable 480 Wages payable 480 Depreciation expense-Computer equipment Accumulated depreciation-Computer equipment d. Accumulated depreciation-Office equipment Rent expense 2,265 Prepaid rent
