Serial Problem Success Systems LO P1, P2, P3, P4, P5

After the success of the companys first two months, Adria Lopez continues to operate Success Systems. The November 30, 2013, unadjusted trial balance of Success Systems (reflecting its transactions for October and November of 2013) follows.

Success Systems had the following transactions and events in December 2013.

Dec.	2	Paid $1,025 cash to Hillside Mall for Success Systems share of mall advertising costs.
	3	Paid $500 cash for minor repairs to the companys computer.
	4	Received $3,950 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 $125 per day.
	14	Notified by Alexs Engineering Co. that Success Systems bid of $7,000 on a proposed project has been accepted. Alexs paid a $1,500 cash advance to Success Systems.
	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.
2226		Took the week off for the holidays.
	28	Received $3,000 cash from Gomez Co. on its receivable.
	29	Reimbursed A. Lopez for business automobile mileage (600 miles at $0.32 per mile).
	31	The business 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 companys 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 Success Systems.(If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)
2.1	Prepare adjusting entries to reflect a through f.
2.2	Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger.

General ledger accounts are: Cash, Accounts Receivable, Computer Supplies, Prepaid Insurance, Prepaid Rent, Office Equipment, Accumulated Depreciation Office Equipment, Computer Equipment, Accumulated Depreciation Computer Equipment, Accounts Payable, Wages Payable, Unearned Computer Service Revenue, Common Stock, Retained Earnings, Dividends, Computer Service Revenue, 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, Income Summary

3.	Prepare an adjusted trial balance as of December 31, 2013

4.	Prepare an income statement for the three months ended December 31, 2013.

5.	Prepare a statement of retained earnings for the three months ended December 31, 2013.

6.	Prepare a balance sheet as of December 31, 2013. (Amounts to be deducted should be indicated with a minus sign.)

7.	Record and post the necessary closing entries for Success Systems. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)

8.	Prepare a post-closing trial balance as of December 31, 2013.

Account Title $48,052 12,618 2,545 2,220 3,300 8,000 101 Cash 106 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 613 Depreciation expense-Computer equipment 623 Wages expense 63 Insurance expense 640 Rent expense 652 Computer supplies expense 655 Advertising expense 20,000 83,000 5,600 25,659 equipment 2,625 2 1,940 704 676 Mileage expense 677 Miscellaneous expenses 684 Repairs expense-Computer 805 Totals $108,659 $108,659