Question

unadjusted trial balance of Business Solutions (reflecting its transactions for October and November o Credit Debit $ 39,064 13,318 2,545 1,980 3,020 8,700 21,200 O oooo No. Account Title 101 Cash 106 Accounts receivable 126 Computer supplies 128 Prepaid insurance 131 Prepaid rent 163 Office 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 307 Common stock 318 Retained earnings Dividends 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 Repairs expense-Computer Totals 65,000 0 6,400 36,834 0 0 2,250 1,698 694 230 735 $ 101,834 $ 101,834

Answer 1

Part 1: Date Dec-02 General Journal Advertising expense Cash Debit Credit 935 935 Dec-03 440 Repairs expense-Computer Cash 1 440 Dec-04 3,950 Cash Accounts receivable 3,950 660 Dec-10 Wages expense Cash 660 (110*6) Dec-14 2,200 Cash Uneamed computer services revenue 2,200 Dec-15 1,200 Computer supplies Accounts payable 1,200 Dec-16 |No journal entry required Dec-20 6,475 Cash Computer services revenue 6,475 Dec-28 3,500 Cash Accounts receivable 3,500 150 Dec-29 Mileage expense Cash 150 (500*0.3) Dec-31 1,100 Dividends Cash 1,100

b. 495 Part 2a: Transaction General Journal Debit Credit Computer supplies expense 3,085 Computer supplies 3,085 2545+1200-660 Insurance expense 495 Pre paid insurance (1980*3/12) Wages expense 440 Wages payable 440 (110*4) d. Depreciation expense-Computer equipment 1,325 Accumulated depreciation-Computer equipment | 1,325 (21200*3/48) Depreciation expense-Office equipment 435 Accumulated depreciation Office equipment 435 (8700*3/60) Rent expense 2,265 Prepaid rent 2,265 (3020*3/4)

Part 2b: Cash Debit Credit Accounts Receivable Debit Credit Balance 13,318 3,950 9368 3 ,500 5868 1 Date Dec. 01 Dec. 04 Dec. 28 935 440 3,950 Date Dec. 01 Dec. 02 Dec. 03 Dec. 04 Dec. 10 Dec. 14 Dec. 20 Dec. 28 Dec. 29 Dec. 31 660 Balance 39,064 38129 376891 416391 40979 43179) 49654 531541 53004 51904 2,200 6,475 3,500 150 1,100 Computer Supplies Debit Credit Date Dec. 01 Dec. 15 Dec. 31 Balance 2,545 3745 660 Date Dec. 01 Dec. 31 Pre paid Insurance Debit Credit Balance 1,980 495 1485 1,200 3,085 Prepaid Rent Debit Credit Office Equipment Debit Credit Date Dec. 01 Dec. 31 Balance 3,020 755 Date Dec. 01 Balance 8,700 2,265 Accumulated Depreciation Office Equipment Date Debit Credit Balance Dec. 01 Dec. 31 435 Date Dec. 01 Computer Equipment Debit Credit Balance 21,200 Accounts Payable Debit Credit Balance Accumulated Depreciation-Computer Equipment Date Debit Credit Balance Dec. 01 Dec. 31 1,325 1325 Date Dec. 01 Dec. 15 1,200 1200 Wages Payable Debit Credit Balance Date Dec. 01 Dec. 31 Uneared Computer Services Revenue Date Debit Credit Balance Dec. 01 Dec. 14 2,200 2200 440 440 Common Stock Debit Credit Retained Earnings Debit Credit Balance Date Dec. 01 Balance 65,000 Date Dec. 01 Dec. 31 Dec. 31 27,472 27472 19972 7,500

Comita Dividends Debit Credit Balance Date Dec. 01 Dec. 20 Dec. 31 6,400 7500 Computer Services Revenue Date Debit Credit Balance Dec. 01 36,834 Dec. 31 6,475 43309 Dec. 31 43,309 1,100 7,500 Depreciation Expense-Computer Equipment Date Debit Credit Balance Dec. 01 Dec. 31 1,325 Dec. 31 L 1,325 | Depreciation Expense-Office Equipment Date Debit Credit Balance Dec. 01 Dec. 10 435 Dec. 31 435 435 Insurance Expense Debit Credit Balance Rent Expense Debit Credit Balance Date Dec. 01 Dec. 31 Dec. 31 Date Dec. 01 Dec. 31 Dec. 31 495 4951 2,265 2265 495 2,265 Computer Supplies Expense Debit Credit Balance Date Dec. 01 Dec. 31 Dec. 31 Date Dec. 01 Dec. 02 Dec. 31 Advertising Expense Debit Credit Balance 1,698 935 2633 2,633 3,085 3085 3,085 Mileage Expense Debit Credit Balance Miscellaneous Expenses Date Debit Credit Balance Dec. 01 230 Dec. 31 230 Date Dec. 01 Dec. 29 Dec. 31 694 150 844 844 Repairs Expense - Computer Date Debit Credit Balance Dec. 01 735 Dec. 03 440 1175 Dec. 31 1,175 Wages Expense Date Debit Credit Balance Dec. 01 2,250 Dec. 31 660 2910 Dec. 31 440 3350 Dec. 313,3500 Income Summary Debit Credit Balance Date Dec. 01 Dec. 31 Dec. 31 Dec. 31 43,309 43,309 15,837 27,472 15,837

Part 3: BUSINESS SOLUTIONS Adjusted Trial Balance December 31, 2018 Account Title Credit Cash Debit 51,904 5,868 660) 1,485 755 8,700 Part 4: BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2018 Revenue Computer services revenue 43,309 Expenses Depreciation expense-Office equipment 435 Depreciation expense-Computer equipment 1325 Wages expense 3350 Insurance expense 495 Rent expense 2265 Computer supplies expense 3085 Advertising expense 2633 Mileage expense 844 Miscellaneous expenses Repairs expense-Computer 1175 435 21,200 1,325 1,200 440 2,200 65,000 230 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 Common stock Retained earnings Dividends 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 expenses Repairs expense-Computer Totals 7,500 15837 Total expenses Net income 43,309) 27,472 435 1,325 3,350 495 2,265 3,085 2,633 844 2301 1,175 113909 Part 5: BUSINESS SOLUTIONS Statement of Retained Earings For Three Months Ended December 31, 2018 Retained earings, December 1, 2018 Add: Net income 27,472 27472 Less: Dividends 7,500 Retained earings, December 31, 2018 19,972 113909

Debit Credit 43,309 43,309 51.904 15,837 5,868 660 1.495 755 Part 6: BUSINESS SOLUTIONS Balance Sheet December 31, 2018 Assets Cash Accounts receivable Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation-Computer equipment Total Assets Liabilities Accounts payable Wages payable Unearned computer services revenue Total Liabilities Equity Common stock Retained earnings Total equity Total Liabilities and Equity 8,700 1-435 8265 21,200 -1,325 19875 88812 Part 7: Date General Journal Dec-31 Computer services revenue Income summary (To close revenue account) Dec-31 Income summary Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer (to close expense account) Dec-31 Income summary Retained earnings (to close income summary account) Dec-31 Retained earnings Dividends (To close dividend account) 435 1325 3350 495 2265 3085 2633 844 230 1175 1,200 440 2,200 3840 27,472 27,472 7,500 7,500 65,000 19,972 84972 88812

Part 8:. BUSINESS SOLUTIONS Post-Closing Trial Balance December 31, 2018 Account Title 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 Common stock Retained earnings Totals Debit Credit 51,904 5,868 660 1,485 755 8,700 435 21,200 1,325 1,200 440 2,200 65,000 19,972 90572 90572