Question

Serial Problem Business Solutions LO P1, P2, P3, P4, P5, P6 After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30, 2019, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2019) follows. Credit $ Debit 39, 064 13, 418 2,645 2,040 3. 120 8,000 No. 101 106 126 128 131 163 164 167 168 201 210 236 301 302 21,200 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 S. Rey, Capital S. Rey, Vithdravals Computer services revenue Depreciation expense-Office equipment Depreciation expense-Computer equipment Vages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense -Computer Totals 66,000 6,000 403 35,219 0 2, 425 613 623 637 640 652 1,708 676 674 210 677 684 715 $ 101,219 $101, 219 Business Solutions had the following transactions and events in December 2019 Dec. 2 Paid $1,020 cash to Hillside Mall for Business Solutions' share of mall advertising costs. 3 Paid $120 cash for nunor repairs to the conpary's computer. 4 Received $4,850 cash fron Alex' s Ergineering Co, for the receivable fron Novenber. 10 Paid cash to Lyn Addio for six days of work at the rate of $120 per day. 14 Notified by Alex': Engineering Co. that Business Solutions' bid of $7,100 on a proposed project has been accepted. Alex's paid a $1,800 cash advance to business Solutions. 15 Purchased $1,300 of computer supplies on credit from Harris Office Products, 16 Sent a reminder to Gomez Co. to pay the fee for services recorded on November 8. 20 Completed a project for Liu Corporation and received $6,225 cash 22 - Took the week off for the holidays. 26 28 Received $3,200 cash fron Gomez Co. on its receivable. 29 Reimbursed S Rey for business automobile mileage (600 miles at $0.23 per mile). 31 S. Rey withdrew $1,100 cash fron the company for personal use.

If it is too complicated，please just help me to answer required 4,5,6.thanks a lot.

Answer 1

Part 1: Date General Journal Advertising expense Cash Debit Credit 1,020 1,020 Dec-03 Repairs expense-Computer 420 Cash 420 Dec-04 4,850 Cash Accounts receivable 4,850 Dec-10 Wages expense 720 Cash 720 (120*6) Dec-14 1,800 Cash Uneamed computer services revenue 1,800 Dec-15 1,300 Computer supplies Accounts payable 1,300 Dec-16 No journal entry required Dec-20 6,225 Cash Computer services revenue 6,225 Dec-28 3,200 Cash Accounts receivable 3,200 138 Dec-29 Mileage expense Cash (600*0.23) Dec-31 S. Rey, withdrawals 1,100 Cash 1,100

b. Part 2a: Transaction General Journal Debit Credit a. Computer supplies expense 3,315 Computer supplies 3,315 2645+1300-630 Insurance expense | 510 Pre paid insurance 510 (2040*3/12) Wages expense 480 Wages payable 480 (120*4) d. Depreciation expense-Computer equipment 1,325 Accumulated depreciation-Computer equipment 1,325 (21200*3/48) Depreciation expense-Office equipment L 400 Accumulated depreciation Office equipment 400 (8000*3/60) Rent expense 2.340 Prepaid rent 2,340 (3120*3/4)

Part 2b: Cash Debit Credit Date Dec. 01 Dec. 04 Dec. 28 Accounts Receivable Debit Credit Balance 13,418 4,850 8568 3 ,200 5368 Date Dec. 01 Dec. 02 Dec. 03 Dec. 04 Dec. 10 Dec. 14 Dec. 20 Dec. 28 Dec. 29 Dec. 31 | 1,020 | 4201 4,850 720 1,800 6,225 3,200 138 1,100 Balance 39,064 38044 37624 42474 41754 43554 497791 52979 52841 51741 Computer Supplies Debit Credit Date Dec. 01 Dec. 15 Dec. 31 Balance 2,645 3945 630 Date Dec. 01 Dec. 31 Pre paid Insurance Debit Credit Balance 2,040 510 1530 1,300 3,315 Prepaid Rent Debit Credit Office Equipment Debit Credit Date Dec. 01 Dec. 31 Balance 3,120 780 Date Dec. 01 Balance 8,000 2,3401 Accumulated Depreciation Office Equipment Date Debit Credit Balance Dec. 01 Dec. 31 400 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 1,300 1300 Wages Payable Debit Credit Balance Date Dec. 01 Dec. 31 Uneared Computer Services Revenue Date Debit Credit Balance Dec. 01 Dec. 14 1800 480 480 1,800 S. Rey, capital Debit Credit Date Dec. 01 Dec. 31 Dec. 31 Balance 66000 91044 83944 25,044 7,100

Comita S. Rey, withdrawals Debit Credit Balance 6,000 Date Dec. 01 Dec. 20 Dec. 31 Computer Services Revenue Date Debit Credit Balance Dec. 01 35,219 Dec. 31 6,225 41444 Dec. 31 41,444 1,100 7100 7,100 Depreciation Expense-Computer Equipment Date Debit Credit Balance Dec. 01 Dec. 31 1,325 Dec. 31 1,325 | Depreciation Expense-Office Equipment Date Debit Credit Balance Dec. 01 Dec. 10 4 00 Dec. 31 400 400 Insurance Expense Debit Credit Rent Expense Debit Credit Balance Balance Date Dec. 01 Dec. 31 Dec. 31 Date Dec. 01 Dec. 31 Dec. 31 2,340 2340 510 1510 2.340 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 1,708 1,020 2728 2,728 3,315 3315 3,315 Mileage Expense Debit Credit Balance Miscellaneous Expenses Date Debit Credit Balance Dec. 01 210 Dec. 31 210 Date Dec. 01 Dec. 29 Dec. 31 674 138 812 812 Wages Expense Debit Credit Repairs Expense - Computer Date Debit Credit Balance Dec. 01 Dec. 03 420 1135 Dec. 31 1,135 Date Dec. 01 Dec. 31 Dec. 31 Dec. 31 720 480 Balance 2,425 3145 3625 0 | 3,625 Income Summary Debit Credit Balance Date Dec. 01 Dec. 31 Dec. 31 Dec. 31 41,444 41,444 16,400 25,044 16,400

Credit Debit 51,741 5,368 630 1,530 780 8,000 400 21,200 Part 3: BUSINESS SOLUTIONS Adjusted Trial Balance December 31, 2019 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 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 expenses Repairs expense-Computer Totals 1,325 1,300 480 1,800 66000 7,100 41,444 400 1,325 3,6251 510 2,340 3,3151 2,7281 812 210 1,1351 112749 112749

Part 4: BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2019 Revenue Computer services revenue 41,444 Expenses Depreciation expense-Office equipment 400 Depreciation expense - Computer equipment 1325 Wages expense Insurance expense 510 Rent expense 2340 Computer supplies expense 3315 Advertising expense 2728 Mileage expense 812 Miscellaneous expenses 210 Repairs expense-Computer 1135 3625 Total expenses Net income 16400 25,044 Part 5: BUSINESS SOLUTIONS Statement of Owners equity For Three Months Ended December 31, 2019 S. Rey, capital, December 1, 2019 66000 Add: Net income 25,044 91044 Less: withdrawals 7,100 S. Rey, capital, December 31, 2019 83,944

780 Part 6: BUSINESS SOLUTIONS Balance Sheet December 31, 2019 Assets Cash 51,741 Accounts receivable 5,368 Computer supplies 630 Prepaid insurance 1,530 Prepaid rent Office equipment 8,000 Accumulated depreciation - Office equipment -400 7600 Computer equipment 21,200 Accumulated depreciation Computer equipment -1,325 19875 Total Assets 87524 Liabilities Accounts payable 1,300 Wages payable 480 Unearned computer services revenue 1,800 Total Liabilities 3580 Equity S. Rey, capital 83,944 Total equity 83944 Total Liabilities and Equity 87524

Debit Credit 41,444 41,444 16,400 400 1325 3625 510 2340 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 S. Rey, capital (to close income summary account) Dec-31 S. Rey, capital S. Rey, withdrawals (To close dividend account) 3315 2728 812 210 1135 25,044 25,044 7.100 7,100

Part 8:. BUSINESS SOLUTIONS Post-Closing Trial Balance December 31, 2019 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 S. Rey, capital Totals Debit Credit 51,741 5,368 630 1,530 780 8,000 21,200 1,325 1,300 480 1,800 83,944 89249 89249