Question

ignments ACC 2021-001: P. Chapter 3 Help Save & E GL0305 - Based on the Serial Problem Business Solutions LO P1, P2, P3, P4, P5, P6 The November 30, 2018, unadjusted trial balance of Business Solutions is found in the Trial balance tab. Business Solutions had the following transactions and events in December 2018 Dec. 2 Paid $1,025 cash to Hillside Mall for Business Solutions' shary of mall advertising costs. Dec. 3 Paid $500 cash for minor repairs to the company's computer. Dec. 4 Received $3,950 cash from Alex's Engineering Co. for the receivable from November. Dec. 10 Paid cash to Lyn Addie for six days of work at the rate of $125 per day. Dec. 14 Notified by Alex's Engineering Co. that Business Solutions bid of $7,000 on a proposed project has been accepted. Alex's paid a $1,500 cash advance to Business Solutions. Dec. 15 Purchased $1,100 of computer supplies on credit from Harris Office Products. Dec. 16 Sent a reminder to Gomez Co. to pay the fee for services recorded on November 8. Dec. 20 Completed a project for Liu Corporation and received $5.625 cash Dec. 22- Took the week off for the holidays. 26 Dec. Dec. Dec. 28 Received $3,000 cash from Gomez Co. on its receivable. 29 Reimbursed s. Rey for business automobile mileage (600 miles at 10.32. per mile). 31 The company paid $1,500 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 $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.

Answer 1

Business Solutions Balance Sheet December 31,, 2019
Assets
Current Assets
Cash	36,564
Accounts Receivable	16,568
Computer Supplies	580
Prepaid Insurance	1,665
Prepaid Rent	825
Total Current Assets		56,202
Plant Assets
Computer Equipment	20,000
Accumulated Depreciation	1,250	18,750
Office Equipment	8,000
Accumulated Depreciation	400	7,600
Total Assets		$ 82,552
Liabilities
Current Liabilities
Accounts Payable	1,100
Wages Payable	500
Unearned Computer Services Revenue	7,000
Total Current Liabilities		8,600
Total Liabilities		8,600
Stockholders Equity
Common Stock	73,000
Retained Earnings	3,568
Total Stockholders Equity		76,568
Total Liabilities and Stockholders Equity		85,168

Business Solutions Income Statement For the year ended December 31, 2019
Computer Services Revenue		$ 25,659
Expenses
Advertising Expense	$ 2,753
Wages Expense	3,125
Mileage Expense	893
Insurance Expense	555
Rent Expense	2,475
Computer Supplies Expense	2,485
Depreciation Expense: Computer Equipment	1,250
Depreciation Expense: Office Equipment	400
Miscellaneous Expense	250
Repairs Expense: Computer	805	14,991
Net Income		$ 10,668