Chapter 3, Problem 3SP

No	Account Title	Debit	Credit
101	Cash	$38,264
106	Accounts receivable	12,618
126	Computer supplies	2,545
128	Prepaid insurance	2,220
131	Prepaid rent	3,300
163	Office equipment	8,000
164	Accumulated depreciation—Office equipment		$ 0
167	Computer equipment	20,000
168	Accumulated depreciation—Computer equipment		0
201	Accounts payable		0
210	Wages payable		0
236	Unearned computer services revenue		0
307	Common stock		73,000
318	Retained earnings		0
319	Dividends	5,600
403	Computer services revenue		25,659
612	Depreciation expense—Office equipment	0
613	Depreciation expense—Computer equipment	0
623	Wages expense	2,625
637	Insurance expense	0
640	Rent expense	0
652	Computer supplies expense	0
655	Advertising expense	1,728
676	Mileage expense	704
677	Miscellaneous expenses	250
684	Repairs expense—Computer	805
	Total	$98,659	$98,659

The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company’s first three months:

1. The December 31 inventory count of computer supplies shows $580 still available.
2. Three months have expired since the 12-month insurance premium was paid in advance.
3. As of December 31, Lyn Addie has not been paid for four days of work at $125 per day.
4. The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.
5. The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.
6. 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. Prepare adjusting entries to record each of the December