Question

After the success of the company's first two months, Santana Rey continues to operate Business Solutions. unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2017 Credit Debit $ 38,564 13,118 2,645 1,980 3,160 8,800 20,400 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 Wages payable 236 Unearned computer services revenue 307 Common stock 318 Retained earnings 319 Dividends 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 Repairs expense-Computer Totals 73,000 5,600 26,794 2,250 1,658 644 230 745 $ 99,794 $ 99,794 Business Solutions had the following transactions and events in December 2017,

Answer 1

Credit Requirement 1: GENERAL JOURNAL Date Description 02-Dec Advertising Expense Cash Paid the business' share of mall advertising costs. Post Ref 655 1 101 Debit 1 ,015 1,015 03-Dec 410 Repair Expense - Computer Cash Paid minor repairs for company's computer. 684 101 410 04-Dec 4,950 Cash Accounts Receivable Collected cash from November receivables. 101 106 4,950 10-Dec 630 Wages Expense Cash Paid assistant 6 days' wages. 623 101 14-Dec 1,700 Cash 101 Unearned Computer Service Revenue Received cash advance from client for service to be performed. 236 1,700 15-Dec 1 1 ,700 Computer Supplies Accounts Payable Purchased computer supplies on account. 126 201 1,700 16-Dec No entry. 20-Dec 6,475 Cash Computer Service Revenue Received cash from customer for services performed. 101 403 6,475 22-26 No entry. 28-Dec 101 3,000 Cash Accounts Receivables Received cash payment from customer on account. 106 3,000 29-Dec 140 Mileage Expense Cash Reimbursement for business automobile mileage. 676 101 140 31-Dec 1,300 Dividends Cash Dividends of cash by Rey 302 101 1.300

Requirement 2.1: GENERAL JOURNAL Description Post Ref Debit Credit Date 31-Dec a. 3,705 Computer Supplies Expense Computer Supplies 652 126 3,705 | b. 495 Insurance Expense Prepaid Insurance 637 128 495 C. 420 Wages Expense Wages Payable 623 210 420 1 d. 1,275 Depreciation Expense - Computer Equipment reciation Expense - Computer Equipment Accumulated Depreciation - Computer Equipment 613 168 1,275 e. 440 Depreciation Expense - Office Equipment Accumulated Depreciation - Office Equipment 612 164 THE FILE FIFT ATT 440 f. 2,370 Rent Expense Prepaid Rent 640 131 2,370 Requirement 2.2: Explanation P/R Debit Credit Balance 1,015 410 4,950 Date 30-Nov 02-Dec 03-Dec 04-Dec 10-Dec 14-Dec 20-Dec 28-Dec 29-Dec 31-Dec 101 Balance 38,564 37,549 37,139 42,089 41,459 43,159 49,634 52,634 52,494 51,194 630 1,700 6,475 3,000 140 1,300 $ Accounts Receivable Explanation P/R Debit Credit Balance Date 30-Nov 04-Dec 28-Dec 106 Balance 13,118 8,168 5,168 4,950 3,000 $ Computer Supplies Explanation P/R Debit Credit Balance Date 30-Nov 15-Dec 31-Dec 126 Balance 2,645 4,345 640 1,700 Adjusting 3,705 $ Prepaid Insurance Explanation P/R Debit Credit Date 30-Nov 31-Dec 128 Balance 1,980 1,485 Balance Adjusting 495 $

Prepaid Rent Explanation P/R Debit Credit Date 30-Nov 31-Dec 131 Balance 3,160 790 Balance Adjusting 2,370 $ Office Equipment Explanation P/R Debit Credit Date 30-Nov 163 Balance 8,800 Balance $ Accumulated Depreciation - Office Equipment Explanation P/R 164 Balance Debit Credit Date 30-Nov 31-Dec Balance Adjusting 440 $ 440 Computer Equipment Explanation Computer aling Explanation P/ RI Debit Credit Date 30-Nov 167 Balance 20,400 Balance $ Accumulated Depreciation - Computer Equipment Explanation IP/ RTDebit 168 Balance Credit Date 30-Nov 31-Dec Balance Adjusting IS THE LATEST SELLELE 1,275 $ 1,275 Accounts Payable 201 Balance Explanation P/ RJ Debit Credit Date 30-Nov 15-Dec Balance 1,700$ 1,700 Wages Payable 210 Balance Explanation P/ RT Debit Credit Date 30-Nov 31-Dec Balance Adjusting 420 $ 420 Unearned Computer Services Revenue Explanation P/ RT Debit 236 Balance Credit Date 30-Nov 14-Dec Balance 1,700 $ 1,700 Common stock Explanation P/R Debit Credit Date 30-Nov 301 Balance 73,000 Balance $ Dividends Explanation P/R Debit Credit Date 30-Nov 31-Dec 302 Balance 5,600 6,900 Balance Adjusting 1,300 $ Computer Services Revenue Explanation LP/ RI Debit Credit Date 30-Nov 20-Dec 403 Balance 26,794 33,269 Balance 6,475 $

Depreciation Expense - Office Equipment Explanation P/R Debit 612 Balance Credit Date 30-Nov 31-Dec Balance Adjusting 440 440 Depreciation Expense - Computer Equipment Explanation P/R 613 Balance Debit Credit Date 30-Nov 31-Dec Balance Adjusting 1,275 $ 1,275 Wages Expense Explanation P/R Debit Credit Balance Date 30-Nov 10-Dec 31-Dec 623 Balance 2,250 2,880 3,300 630T 420 Adjusting Insurance Expense 637 Explanation P/ R T Credit Date 31-Dec Debit 495 Balance 495 Adjusting $ Rent Expense Explanation P/R Credit Date 31-Dec Debit 2,370 640 Balance 2,370 Adjusting $ $ 1 Computer Supplies Expense Explanation P/R Credit Date 31-Dec Debit 3,705 652 Balance 3,705 Adjusting $ ||| Advertising Expense Explanation P/R Debit Credit Date 30-Nov 05-Dec 655 Balance 1,658 2,673 Balance 1.015 $ Mileage Expense 676 Explanation P/R Debit Credit Date 30-Nov 29-Dec Balance Balance 644 784 140 $ Miscellaneous Expense 1 Explanation P/R Debit Credit Date 30-Nov 677 Balance 230 Balance $ Repair Expense - Computer Explanation P/ R Debit Credit Date 30-Nov 03-Dec 684 Balance 745 1,155 Balance 410 $

Requirement 3: Business Solutions Adjusted Trial Balance December 31, 2011 Credit Debit 51,194 5,168 640 1,485 790 8,800 440 20,400 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 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 1,275 1,700 420 1,700 73,000 6,900 33,269 440 1,275 3,300 495 2,370 3,705 2,673 784 230 1,155 111,804 $ $ 111,804 33,269 Requirement 4: Business Solutions Income Statement For the Three Months Ended December 31, 2011 Revenues: Computer Services Revenue Expenses: Depreciation Expense-Office Equipment 440 Depreciation expense-Computer equipment 1,275 Wages expense 3,300 Insurance expense 495 Rent expense 2,370 Computer supplies expense 3,705 Advertising expense 2,673 Mileage expense 784 Miscellaneous expenses 230 Repairs expense-Computer 1.155 Total Expenses Net Income 16,427 16,842 $

Requirement 5: Business Solutions Statement of Retained earnings For the Three Months Ended December 31, 2011 Opening Balance Add: Net Income 16,842 16,842 16,842 6,900 9,942 Less: Dividends Closing Balance Requirement 6: Business Solutions Balance Sheet December 31, 2011 Assets Cash Accounts Receivable Computer Supplies Prepaid Insurance Prepaid Rent Current Assets 51,194 5,168 640 1,485 790 59,277 8.360 Office Equipment | Accumulated depreciation - Office Equipment Computer Equipment | Accumulated depreciation - Computer Equipment Noncurrent Assets Total Assets 8,800 (440)| 20,400 (1,275) 19,125 86,762 | 1,700 420 1,700 Liabilities Accounts payable Wages payable Unearned computer services revenue Total Liabilities Stockholders equity Common stock retained earnings Total Liabilities & Owner's Equity 3,820 73,000 9,942 86,762 $