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. Number 101 106 126 128 131 163 164 Accumulated depreciation-Office equipment 167 168 201 210 236 301 302 403 612 613 623 637 640 652 655 676 677 684 Account Title Cash Accounts receivable Computer supplies Prepaid insurance Prepaid rent Office equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable Wages payable Unearned computer services revenue S. Rey, Capital S. Rey, Withdrawals Computer services 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 Totals Debit $ 38,264 12,618 2,545 2,220 3,300 8,000 20,000 5,600 0 0 2,625 0 0 0 1,728 704 250 805 $ 98,659 Credit $0 0 0 0 0 73,000 25,659 $ 98,659 Business Solutions had the following transactions and events in December 2021. December 2 Paid $1,025 cash to Hillside Mall for Business Solutions's share of mall advertising costs. December 3 Paid $500 cash for minor repairs to the company's computer. December 4 Received $3,950 cash from Alex's Engineering Company 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 Alex's Engineering Company that Business Solutions's bid of $7,000 bn a proposed project has been accepted. Alex's paid a $1,500 cash advance to Business Solutions. December 15 Purchased $1,100 of computer supplies on credit from Harris Office Products. December 16 Sent a reminder to Gomez Company to pay the fee for services recorded on November 8.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
Number
126
201
210
131
163
164 Accumulated depreciation-Office
167
403
612
613
Account Title
Cash
Accounts receivable
Computer supplies
Prepaid insurance
Prepaid rent
Office equipment
Computer equipment
Accumulated depreciation-Computer equipment
Accounts payable
Wages payable
Unearned computer services revenue
S. Rey, Capital
S. Rey, Withdrawals
Computer services revenue
Wages expense
Insurance expense
Depreciation expense-Office equipment
Depreciation expense-Computer equipment
equipment
equipment
Rent expense
Computer supplies expense
Advertising expense
Mileage expense
Miscellaneous expenses
Repairs expense-Computer
Totals
Debit
$ 38,264
12,618
2,545
2,220
3,300
8,000
20,000
5,600
OUOO
0
0
2,625
0
0
704
$ 98,659
Credit
$0
0
0
73,000
25,659
$ 98,659
Business Solutions had the following transactions and events in December 2021.
December 2 Paid $1,025 cash to Hillside Mall for Business Solutions's share of mall advertising costs.
December 3 Paid $500 cash for minor repairs to the company's computer.
December 4 Received $3,950 cash from Alex's Engineering Company 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 Alex's Engineering Company that Business Solutions's bid of $7,000 on a proposed project has
been accepted. Alex's paid a $1,500 cash advance to Business Solutions.
December 15
Purchased $1,100 of computer supplies on credit from Harris Office Products.
December 16 Sent a reminder to Gomez Company to pay the fee for services recorded on November 8.
Transcribed Image Text: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. Number 126 201 210 131 163 164 Accumulated depreciation-Office 167 403 612 613 Account Title Cash Accounts receivable Computer supplies Prepaid insurance Prepaid rent Office equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable Wages payable Unearned computer services revenue S. Rey, Capital S. Rey, Withdrawals Computer services revenue Wages expense Insurance expense Depreciation expense-Office equipment Depreciation expense-Computer equipment equipment equipment Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer Totals Debit $ 38,264 12,618 2,545 2,220 3,300 8,000 20,000 5,600 OUOO 0 0 2,625 0 0 704 $ 98,659 Credit $0 0 0 73,000 25,659 $ 98,659 Business Solutions had the following transactions and events in December 2021. December 2 Paid $1,025 cash to Hillside Mall for Business Solutions's share of mall advertising costs. December 3 Paid $500 cash for minor repairs to the company's computer. December 4 Received $3,950 cash from Alex's Engineering Company 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 Alex's Engineering Company that Business Solutions's bid of $7,000 on a proposed project has been accepted. Alex's paid a $1,500 cash advance to Business Solutions. December 15 Purchased $1,100 of computer supplies on credit from Harris Office Products. December 16 Sent a reminder to Gomez Company to pay the fee for services recorded on November 8.
DAU
652
676
684
ABNT expense
Computer supplies expense
Advertising expense
Mileage expense
Miscellaneous expenses
Repairs expense-Computer
Totals
0
1,728
704
y
805
$ 98,659
$ 98,659
Business Solutions had the following transactions and events in December 2021.
December 2 Paid $1,025 cash to Hillside Mall for Business Solutions's share of mall advertising costs.
December 3 Paid $500 cash for minor repairs to the company's computer.
December 4 Received $3,950 cash from Alex's Engineering Company 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 Alex's Engineering Company that Business Solutions's bid of $7,000 on a proposed project has
been accepted. Alex's paid a $1,500 cash advance to Business Solutions.
December 15 Purchased $1,100 of computer supplies on credit from Harris 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 Liu Corporation and received $5,625 cash.
December 22-26 Took the week off for the holidays.
December 28 Received $3,000 cash from Gomez Company on its receivable.
December 29 Reimbursed S. Rey for business automobile mileage (600 miles at $0.32 per mile).
December 31 S. Rey withdrew $1,500 cash from the company for personal use.
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 and events for Business Solutions.
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.
3. Prepare an adjusted trial balance as of December 31, 2021.
C
Transcribed Image Text:DAU 652 676 684 ABNT expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer Totals 0 1,728 704 y 805 $ 98,659 $ 98,659 Business Solutions had the following transactions and events in December 2021. December 2 Paid $1,025 cash to Hillside Mall for Business Solutions's share of mall advertising costs. December 3 Paid $500 cash for minor repairs to the company's computer. December 4 Received $3,950 cash from Alex's Engineering Company 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 Alex's Engineering Company that Business Solutions's bid of $7,000 on a proposed project has been accepted. Alex's paid a $1,500 cash advance to Business Solutions. December 15 Purchased $1,100 of computer supplies on credit from Harris 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 Liu Corporation and received $5,625 cash. December 22-26 Took the week off for the holidays. December 28 Received $3,000 cash from Gomez Company on its receivable. December 29 Reimbursed S. Rey for business automobile mileage (600 miles at $0.32 per mile). December 31 S. Rey withdrew $1,500 cash from the company for personal use. 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 and events for Business Solutions. 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. 3. Prepare an adjusted trial balance as of December 31, 2021. C
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