Question

art 1: Problem After the success achieved in ihe first two months of operations, Business Solutions continues to be nanaged by Santana Rey. The November 30, 2018, unadjusted trial balance of the company, reflecting is transactions for October and November of 2018, is shown in Figure 1. Figure 1. Unadjusted Trial Balance - November 30, 2018 Account Title Credit 101 Cash Debit $38,264 12,618 2,545 2,220 3,300 8,000 20,000 168 LACC 0 106 Accounts Receivable 126 Computer Supplies 128 Prepaid Insurance 131 Prepaid Rent 163 Office Equipment 164 Accumulated Depreciation - Office Equipment 167 Computer Equipment Accumulated Depreciation - Computer Equipment 201 Accounts Payable 210 Wages Payable 236 Unearned Computer Services Revenue 301 S. Rey, Capital 302 S. Rey, Withdrawals 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 Repair's Expense - Computer $73,000 5,600 25,659 2,625 0 0 1.728 704 250 805 DLL

I need to create a Trial Balance from data in the first two pictures.

Answer 1

Business Solutions Req 1 Journal entries Date Account 2-Dec Advertising expense Credit Calculation Debit 1,025 Cash 1,025 500 3-Dec Repairs expense-Computer Cash 500 3,950 4-Dec Cash Accounts Receivable 3,950 750 =6*125 10-Dec Wages expense Cash 750 1,500 14-Dec Cash Unearned Computer Services Revenue 1,500 1,100 15-Dec Computer Supplies Accounts Payable 1,100 16-Dec No entry 5,625 20-Dec Cash Computer Services Revenue 5,625 Dec 22-26 No entry 3,000 28-Dec Cash Accounts Receivable 3,000 192 =600*0.32 29-Dec Mileage expense Cash 192 31-Dec S. Rey, Withdrawals 1,500 Cash 1,500

Req 2-a Adjusting entries 31-Dec Computer supplies expense Computer Supplies 3,065 =2,545+1,100-580 3,065 555 =2,220/12*3 31-Dec Insurance expense Prepaid Insurance 555 500 -4*125 31-Dec Wages expense Wages Payable 500 1,250 =20,000/4*3/12 31-Dec Depreciation expense-Computer Equipment Accumulated Depreciation-Computer Equipment 1,250 400 =8,000/5*3/12 31-Dec Depreciation expense-Office Equipment Accumulated Depreciation Office Equipment 400 2,475 =3,300/4*3 2,475 Credit Debit Calculation 31-Dec Rent expense Prepaid Rent Date Account Reg 2 Closing entries 31-Dec Computer Services Revenue Income Summary 31,284 31,284 16,824 31-Dec Income Summary Depreciation expense-Office Equipment Depreciation expense-Computer Equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expense Repairs expense-Computer 400 1,250 3,875 555 2,475 3,065 2,753 896 250 1,305 14,460 =31,284-16,824 31-Dec Income Summary S. Rey, Capital 14,460 7,100 31-Dec S. Rey, Capital S. Rey, Withdrawals 7,100

Balance Date Debit Credit Prepaid Insurance Op bal $2,220 31-Dec $ 555 $ 2,220 $ 1,665 Business Solutions Req 2-b T Accounts Date Debit Credit Balance Date Debit Credit Balance Date Debit Credit Balance Cash Accounts Receivable Computer Supplies Op bal $38,264 $38,264 Op bal $12,618 $ 12,618 Op bal $ 2,545 $ 2,545 2-Dec $ 1,025 $37,239 4-Dec $ 3,950 $ 8,668 15-Dec $ 1,100 $ 3,645 3-Dec $ 500 $ 36,739 28-Dec $ 3,000 $ 5,668 31-Dec $ 3,065 $ 580 4-Dec $ 3,950 $ 40,689 10-Dec $ 750 $ 39,939 14-Dec $ 1,500 $ 41,439 20-Dec $ 5,625 $ 47,064 28-Dec $ 3,000 $ 50,064 29-Dec $ 192 $49,872 31-Dec $ 1,500 $ 48,372 Office Equip Accum. Depr. - Office Equip Computer Equipment Op bal $ 8,000 $ 8,000 31-Dec $ 400 $ 400 Op bal $20,000 $ 20,000 Prepaid Rent Accounts Payable Wages Payable Op bal $ 3,300 $ 3,300 15-Dec $ 1,100 $ 1,100 31-Dec $ 500 $ 500 31-Dec $ 2,475 $ 825 Date Debit Credit Balance Date Debit Credit Balance Date Debit Credit Balance S. Rey, Capital S. Rey, Withdrawals Income Summary Op bal $ 73,000 $ 73,000 Op bal $ 5,600 $ 5,600 31-Dec $ 31,284 $31,284 31-Dec $ 14,460 $ 87,460 31-Dec $ 1,500 $ 7,100 31-Dec $ 16,824 $ 14,460 31-Dec $ 7,100 $ 80,360 31-Dec $ 7,100 $ - 31-Dec $ 14,460 Computer Services Revenue Depreciation expense-Office Equipment Depreciation expense-Computer Equip Op bal $ 25,659 $ 25,659 31-Dec $ 400 $ 40031-Dec $ 1,250 $ 1,250 20-Dec $ 5,625 $31,284 31-Dec $ 400 $ - 31-Dec $ 1,250 $ . 31-Dec $ 31,284 $ - Accum. Depr. - Computer Equip 31-Dec $ 1,250 $ 1,250 Unearned Computer Services Revenue 14-Dec $ 1,500 $ 1,500 Date Debit Credit Balance S . Wages expense Op bal $ 2,625 $ 2,625 10-Dec $ 750 $ 3,375 31-Dec $ 500 $ 3,875 31-Dec $ 3,875 $ - Advertising expense Op bal $ 1,728 $ 1,728 2-Dec $ 1,025 $ 2,753 31-Dec $ 2,753 $ . Insurance expense 31-Dec $ 555 31-Dec $ 555 $ $ 555 - Rent expense 31-Dec $ 2,475 31-Dec $ 2,475 $ 2,475 $ - Computer supplies expense 31-Dec $ 3,065 $ 3,065 31-Dec $ 3,065 $ - Mileage expense Op bal $ 704 29-Dec $ 192 31-Dec $ 896 $ $ $ Miscellaneous expense 704 Op bal $ 250 $ 896 31-Dec $ 250 $ . 250 . Repairs expense-Computer Op bal $ 805 $ 805 3-Dec $ 500 $ 1,305 31-Dec $ 1,305 $ -

Adjustments Debit Credit Unadjusted TB Debit Credit 48,372 5,668 3,645 2,220 3,300 8,000 3,065 555 2,475 400 20,000 1,250 1,100 500 Business Solutions Account Names 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 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 expense Repairs expense-Computer Totals 1,500 73,000 Adjusted TB Debit Credit 48,372 5,668 580 1,665 825 8,000 400 20,000 1,250 1,100 500 1,500 73,000 7,100 31,284 400 1,250 3,875 555 2,475 3,065 2,753 896 250 1,305 109,034 109,034 7,100 31,284 3,375 400 1,250 500 555 2,475 3,065 2,753 896 250 1,305 106,884 106,884 8,245 8 ,245

31,284 Req 4 Business Solutions Income Statement For three months ended Dec 31, 2019 Computer Services Revenue Expenses Depreciation expense-Office Equipment Depreciation expense-Computer Equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expense Repairs expense-Computer Total Expenses Net Income 400 1,250 3,875 555 2,475 3,065 2,753 896 250 1,305 16,824 14,460 73,000 Req 5 Statement of Owners Equity For three months ended Dec 31, 2019 Capital, Oct 1, 2019 Net Income Subtotal Less: Withdrawals Capital, Dec 31, 2019 14,460 87,460 (7,100) 80,360

Reg 6 Business Solutions Balance Sheet As of Dec 31, 2019 Assets Current Assets Cash Accounts Receivable Computer Supplies Prepaid Insurance Prepaid Rent Total Current Assets 48,372 5,668 580 1,665 825 57,110 Fixed Assets Office Equipment Accumulated Depreciation Office Equipment Computer Equipment Accumulated Depreciation-Computer Equipment Total Fixed Assets Total Assets 8,000 (400) 7,600 20,000 (1,250) 18,750 26,350 83,460 Liabilities & Equity Liabilities Accounts Payable Wages Payable Unearned Computer Services Revenue Total Liabilities 1,100 500 1,500 3,100 Equity Capital Total Liabilities & Equity 80,360 83,460