Question

Business Solutions had the following transactions and events in December 2015 Dec. 2 Paid $925 cash to Hillside Mall for Business Solutions' share of mall advertising costs 3 Paid $420 cash for minor repairs to the company's computer 4 Received $4,450 cash from Alex's Engineering Co. for the receivable from November 10 Paid cash to Lyn Addie for six days of work at the rate of $115 per day 14 Notified by Alex's Engineering Co. that Business Solutions' bid of $7,600 on a proposed project has been accepted. Alex's paid a $2,300 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 $5,725 cash. 22- Took the week off for the holidays. 26 28 Received $3,100 cash from Gomez Co. on its receivable 29 Reimbursed S. Rey for business automobile mileage (500 miles at $0.32 per mile) 31 The company paid $1,500 cash in dividends. The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company's first three months: a. The December 31 inventory count of computer supplies shows $580 still available b. Three months have expired since the 12-month insurance premium was paid in advance c. As of December 31, Lyn Addie has not been paid for four days of work at $115 per day. d. The computer system, acquired on October 1, is expected to have a four-year life with no salvage value e. The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value f. Three of the four months' prepaid rent has expi Required 1. Prepare journal entries to record each of the December transactions and events for Business Solutions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer 1

The information given in the question is incomplete. The unadjusted trial balance as on Dec 1, 2015 has not been given hence it is not possible to pass adjusting entries and post the entries to the ledger, and subsequently make the financial statements. I have tried to solve as much of the problem I can with the given information. The first part of recording journal entries has been completely solved.

1. Journal Entries in the books of Business Solutions for Dec 2015
Date	General Ledger	Debit	Credit
Dec
2	Advertising expense	925
	Cash		925
3	Repairs expense - computer	420
	Cash		420
4	Cash	4450
	Accounts Receivable		4450
10	Wages expense	690
	Cash		690
14	Cash	2300
	Unearned computer services revenue		2300
15	Computer Supplies	1300
	Accounts Payable		1300
16	No journal entry required	0
	No journal entry required		0
20	Cash	5725
	Computer services revenue		5725
22-26	No journal entry required	0
	No journal entry required		0
28	Cash	3100
	Accounts Receivable		3100
29	Mileage expense	160
	Cash		160
30	Dividends	1500
	Cash		1500
2.1: Adjusting entries for a-f		Debit	Credit
a	Computer Supplies expense	580
	Computer Supplies		580
b	Insurance expense	no info
	Prepaid insurance		no info
c	Wages expense	460
	Wages payable		460
d	Depreciation expense - computer equipment	no info
	Accumulated depreciation - computer equipment		no info
e	Depreciation expense - office equipment	no info
	Accumulated depreciation - office equipment		no info
f	Rent expense	no info
	Prepaid rent		no info