Question

please prepare a general journal and general ledger, partial worksheet with adjusted and unadjusted balances, income statement based off adjusted trual balance, statement of retained earnings, and a blanace sheet. thank you!!!

Santana Rey created Business Solutions on October 1, 2017. The company has been successful and its list of customers has grown. To accommodate the growth, the accounting system is modified to set up separate accounts for each customer. The following chart of accounts includes the account number used for each account and any balance as of December 31, 2017. Santana Rey decided to add a fourth dial with a decimal point to the 106 account number that had been used for the single Accounts Receivable account. This change allows the company to continue using the existing chart of accounts. Credit $ 300 No. Account Title Debit 101 Cash $48,482 106.1Alex's Engineering Co. 106.2Wildcat Services 106. Easy Leasing 106.4ITN Co. 3,130 106.5Liu Corp. 106.6Gomez co. 2,738 106.7 Delta co. 106.8KC, Inc. 106.9Dream, Inc. 119 Merchandise inventory 126 Computer supplies 750 128 Prepaid insurance 1,854 131 Prepaid rent 825 163 office equipment 8.020 164 Accumulated depreciation- office equipment 167 Computer equipment 21,800 168 Accumulated depreciation- Computer equipment 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue 307 Common stock 318 Retained earnings 319 Dividends 403 Computer services revenue Sales 414 Sales returns and allowances 415 Sales discounts 502 Cost of goods sold 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 Repairs expense Computer 1,210 1,260 980 1,440 75,189 7.220 OOOOOOOO 612 In response to requests from customers. S. Rey will begin selling computer software. The company will extend credit terms of 110,30, FOB shipping point to all customers who purchase this merchandise However no cash discount is available on consulting fees. Additional accounts Nos. 119.413 414 415, and 502) are added to its general ledger to accommodate the company's new merchandising activities. Also, Business Solutions does not use reversing entries and therefore, all revenue and expense accounts have rero beginning balances as of January 1 2018. Its transactions for January through March follow < Prev

Answer 1

Following would be the Journal Entries from the period Jan to Mar:

Jan-4 Wages Expense Dr. $245

Wages Payable Dr. $980

To Cash $1,225

(Being salary paid to Lyn Addie)

Jan-5 Investment Dr. $24,000

To Cash $24,000

(Being investment made in common stock)

Jan-7 Merchandise purchase Dr. $6,800

To Kansas Corp. $6,800

(Being purchase of merchandise on credit)

Jan-9 Cash Dr. $2,738

To Gomez. Co. (106.6) $ 2,738

(Being amount received from Gomez)

Jan-11 Alex Engineering Co.(106.1) Dr. $5,400

Unearned Revenue Account Dr. $1,440

To Computer Services $6,840

(Being income recognized for services provided and opening balance of unearned revenue adjusted)

Jan-13 Liu Corp. (106.5) Dr. $4,500

To Purchase Merchandise account $3,480

To Profit and loss Account $1,050

(Being merchandise sold to Liu corp. at a profit of $1,050)

Jan-15 Freight Charges Dr. $660

To cash $660

(Being expenses for freight towards merchandise purchase)

Jan-16 Cash Dr. $4,080

To computer services $4,080

(Being income recognized for services provided to Delta Co. (106.7))

Jan-17 Kansas corp. Dr. $6,800

To cash $6,732

To cash discount $68

(Being amount paid to kansas with discount)

Jan-20 Profit and loss account Dr. $310

Cost of goods sold Dr. $290

To liu corp. (106.5) $600

(Being profit reversed on defective goods)

Jan-22 Cash Dr. $3,861

Discount expense Dr. $39

To Liu Corp.(106.5) $3,900

(Being amount received from liu corp. on sale of merchandise after discount)

Jan-24 Kansas Corp. Dr. $486

Cash Discount Dr. $5

To Purchase Merchandise $491

(Being credit received for defective merchandise)

Jan-26 Purchase Merchandise Dr. $9,500

To Kansas Corp. $9500

(Being purchase of merchandise on credit)

Jan-31 Wages Expense Dr. $2,450

To cash $2,450

(Being cash paid to Lyn Addie for work)

Feb-1 Prepaid rent Dr. $2,475

To Cash $2,475

(Being rent paid to hillside mall for 3 Months)

Feb-3 Kansas Corp. Dr. $9,014

To Cash Discount $95

To Cash $8,919

(Being amount paid to Kansas Corp.)

Feb-5 Advertisement Expense Dr. $560

To Cash $560

(Being amount paid for Expense)

Feb-11 cash Dr. $5,400

To Alex Engineering Co.(106.1) $5,400

(Being Cash received from Alex Engineering Co.(106.1))

Feb-15 Retained Earnings Dr. $4,790

To Cash $4,790

(Being Dividend Paid)

Feb-23 Delta Co. Dr. $3,290

To Merchandise $2,490

To Profit and loss account $800

(Being merchandise sold at a profit of $800)

Feb-26 Wages Expense Dr. $1,960

To cash $1,960

(Being cash paid to Lyn Addie for work)

Feb-27 Reimbursement Expense Dr. $96

To cash $96

(Being amount paid to santana rey)

Mar-8 Computer Supplies Dr. $2,860

To Harris Office $2,860

(Being computer supplies purchased on Credit)

Mar-9 Cash Dr. $3,290

To Delta Co. $3,290

(Being amount received for merchandise sale)

Mar-16 Repair Expense Dr. $770

To cash $770

(Being amount paid for computer repairs)

Mar-16 Cash Dr. $5,320

To computer services $5,320

(Being income recognized for services provided to Dream Inc)

Mar-19 Harris Supplies Dr. $2,860

Accounts payable Dr. $1,260

To Cash $4,120

(Being amount paid to Harris Supplies)

Mar-24 Easy Leasing Dr. $9,207

To computer services $9,207

(Being income recognized for services provided to Eazy Leasing)

Mar-25 Wildcat Services.   Dr. $2,890

To Merchandise $2,162

To Profit and loss account $728

(Being merchandise sold at a profit of $728)

Mar-30 IFM Company Dr. $2,400

To Merchandise $1,088

To Profit and loss account $ ,312

(Being merchandise sold at a profit of $1,312)

Mar-31 Reimbursement Expense Dr. $320

To cash $320

(Being amount paid to santana rey)

Mar-31 Insurance Expense Dr. $618

To prepaid Insurance $618

(being prepaid insurance adjusted)

Mar-31 Wages Expense Dr. $1,715

To wages payable $1,715

(Being cash payable to Lyn Addie for work)

Mar-31 Rent Expense Dr. $2,475

To prepaid rent $2,475

(being prepaid rent for current quarter adjusted)

Mar-31 Depreciation Expense Dr. $510

To Accumulated Depreciation Computer Equipment $210

To Accumulated Depreciation Office Equipment $300