Question

Accounting 2140 - Comprehensive On October 1, 2019 Santana Rey launched a computer services company called Business Solutions, which provides consulting services, computer system installations, and custom program development Rey adopts the calendar year for reporting purposes and expects to prepare the company's first set of financial statements on December 31, 2019 Alter the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30, 2010. nadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2019 Follow Credit Debit $ 38 254 13.118 2.545 1.920 3050 8.400 2 100 13 126 20,400 68,000 Account Title i 101 Casb Accounts receivable Computer supplies 315 Prepaid insurance K 131 Prepaid rent 163 Mice 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 Common stock 318 Retained earnings 319 Dividends Computer services revenue 612 Depreciation expense-Office equipment 613 Depreciation expense-Computer equipment Wages expense 637 Insurance expense 640 Rent expense 652 Computer supplies expense 655 Advertising expense 676 Mileage expense- 677 Miscellaneous expenses 684 Repairs expense Computer 307 31.134 823 004 190 745 $ 99,134 Totals $99.134 Business Solutions had the following transactions and events in December 2019 Dec 2 3 4. 10 14 15 16 20 22-26 28 29 31 Paid $990 cash to Hillside Mall for Business Solutions share of mal advertising costs Paid $470 cash for minor repairs to the company's computer Received $4.550 cash from Alex's Engineering Co for the receivable from November Paid cash to Lyn Addio for six days of work at the rate of $120 per day Notified by Alex's Engineering Co. that Business Solutions' bid of $7.700 on a proposed project has been accepted. Alex's paid a $2,200 cash advance to Business Solutions Purchased $1,400 of computer supplies on credit from Harris Office Products Sent a reminder to Gomez Co to pay the fee for services recorded on November Completed a project for Liu Corporation and received $6.225 cash Tool the week off for the holidays. Received $3.900 cash from Gomez Co. on its receivable Reimbursed S. Rey for business automobile mileage (500 miles at $0 24 per mile) The company paid $1,300 cash in dividends.

Answer 1

Business Solutions Journal Enteries Date Particulars 2.12.2019 Advertising expense a/c Dr. To Cash (Being Advertising expense paid in Cash) Debit in $Credit in $ 990 990 3.12.2019 Repairs expense - computer a/c Dr. To Cash (Being Computer repairs incurred in cash) 470 4550 4.12.2019 Cash a/c Dr. To Accounts Receivable (Being Cash received in Debtors) 4550 720 10.12.2019 Wage expense a/c Dr. To Cash (Being Wages paid in Lyn Addie) 720 2200 14.12.2019 Cash a/c Dr. To Unearned Computer service revenue (Being Cash received in advance from clients) 2200 1400 15.12.2019 Computer Supplies a/c Dr. To Accounts Payable (Being Computer Supplies purchased on account) 1400 16.12.2019 No Entry Dr. 6225 20.12.2019 Cash a/c To Computer Services Revenue (Being Cash received for project completed) 6225 3900 28.12.2019 Cash a/c Dr. To Accounts Receivable (Being Cash received from Debtors) 3900 120 29.12.2019 Mileage expense a/c Dr. To Cash (Being Mileage expense paid in cash) 500 x 0.24 31.12.2019 Dividends a/c Dr. To Cash (Being Dividends paid in cash) 1300 1300

Adjustment enteries Date Particulars Debit in $Credit in $ 31.12.2019 Computer supplies expense a/c Dr. 3335 To Computer Supplies 3335 2545 + 1400-610 (Being Computer Supplies Expense charged to Computer Supplies) 480 480 31.12.2019 Insurance expense a/c Dr. To Prepaid Insurance 1980 * 3/12 (Being Insurance expense charged to Prepaid Insurance) 480 480 31.12.2019 Wage expense a/c Dr. To Wages Payable (Being Wages accrued) 120 x 4 31.12.2019 Depreciation - Computer a/c Dr. To Accumulated Depreciation - Computer 20400 * 3/(4*12) (Being Depreciation charged to Computer Equip.) 1275 1275 420 31.12.2019 Depreciation - office equip a/c Dr. To Accumulated Depreciation - Office Equip 8400*3/(5*12) (Being Depreciation charged to Office Equip.) 2295 2295 31.12.2019 Rent expense a/c Dr. To Prepaid Rent 3060 x 3/4 (Being Rent expense charged to Prepaid Rent) Dr. Closing Enteries Date Particulars 31.12.2019 Income Summary a/c To Depreciation - office equip To Depreciation - Computer To Wage expense To Insurance expense To Rent expense To Computer supplies expense To Advertising expense To Mileage expense To Miscellaneous expense To Repairs expense - computer Debit in $Credit in $ 16312 420 1275 3600 480 2295 3335 2718 784 190 1215 Dr. 37359 31.12.2019 Computer Service Revenue a/c To Income Summary 37359 Dr. 21047 31.12.2019 Income Summary a/c To Retained earnings 21047 Dr. 7000 31.12.2019 Retained Earnings a/c To Divdends 7000

Unadjusted Trial Balance As at 31.12.2019 No. Particulars 101 Cash 106 Accounts Receivable 126 Computer Supplies 128 Prepaid Insurance 131 Prepaid Rent 163 Office Equipment 164 Accumulated Depreciation - Off. Equip 167 Computer Equipment 168 Accumulated Depreciation - Computer 201 Accounts Payable 210 Wages Payable 236 Unearned Computer service Revenue 307 Common Stock 318 Retained Earnings 319 Dividends 403 Computer Service Revenue 612 Depreciation - office equip 613 Depreciation - Computer 623 Wage expense 637 Insurance expense 640 Rent expense 652 Computer supplies expense 655 Advertising expense 676 Mileage expense 677 Miscellaneous expense 684 Repairs expense - computer Totals Unadjusted Adjustment Adjusted Post Closing Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ 51539 51539 51539 4668 4668 4668 3945 3335 610 610 1920 480 1440 1440 3060 2295 765 765 8400 8400 8400 420 420 420 20400 20400 20400 1275 1275 1275 1400 1400 1400 480 480 480 2200 2200 2200 68000 68000 68000 14047 7000 7000 37359 37359 0 420 420 1275 3120 480 3600 480 480 2295 2295 3335 3335 2718 2718 784 784 190 190 1215 1215 108959 108959 82858285 111134 111134 87822 87822 1275

37359 420 1275 3600 Statement of Income For the period ending 31.12.2019 Computer Service Revenue Less: Depreciation - office equip Depreciation - Computer Wage expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expense Repairs expense - computer Net Income 480 2295 3335 2718 784 190 1215 16312 21047 Statement of Retained Earnings For the period ending 31.12.2019 Beginning Balance Net Income Dividends 31.12.2019 21047 -7000 14047

Amounts in $ Amounts in $ Balance sheet As at 31.12.2019 Assets Current Assets Cash Accounts Receivable Computer Supplies Prepaid Insurance Prepaid Rent Amounts in $ Amounts in $ Liabilities Current Liabilities 51539 Accounts Payable 4668 Wages Payable 610 Unearned Computer service Revenue 1440 765 59022 1400 480 2200 4080 8400 Non Current Assets Office Equipment Accumulated Depreciation Computer Equipment Accumulated Depreciation Total Assets -420 20400 -1275 7980 Shareholders Equity Common Stock 19125 Retained Earnings 86127 Total Liabilities & Shareholders Equity 68000 14047 82047 86127