Question

After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30, 2018, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2018) follows. Credit Debit $ 38,564 12,918 2,645 2,100 2,920 8,700 $ 0 20,000 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 316 Retained earnings 319 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 0 0 o 0 65,000 0 6,000 34,414 0 0 2,250 0 o 0 1,698 180 725 $ 99,414 $99,414

Answer 1

Note - As per Chegg Guidlines we are alllowed to process 4 questions in the question -

1. Journal Entries -

Date Credit Business Solutions Journal Entries Accounts Title Debit Advertising Expense $ 1,015 Cash (Being Advertising Expense paid) Dec 2 $ 1,015 Dec 3 430 Repairs Expense - Computer $ Cash (Being Repair Expense Paid) $ 430 Dec 4 Cash $ 4,050 Accounts Receivable (Being amount received on account) $ 4,050 690 Dec 10 Wages Expense $ Cash (Being Wages Paid) $ 690 Dec 14 Cash $ 1,900 Unearned Computer Service Revenue (Being cash received in advance) $ 1,900 Dec 15 Computer Supplies $ 2,000 Accounts Payable (Being Supplies Purchased on account) $ 2,000 Dec 16 No Entry Dec 20 Cash $ 5,975 Computer Service Revenue $ 5,975 (Being service revenue earned through cash) Dec 22 No Entry Dec 28 Cash $ 3,600 Accounts Receivable (Being Amount received on account) $ 3,600 168 Dec 29 Mileage Expense $ Cash (Being Mileage expense paid) $ 168 $ 1,500 Dec 31 Dividend Cash $ 1,500 (Being Dividend Paid)

2. Unadjusted Trial Balance -

Credit Debit $ 50,286 $ 5,268 $ 4,645 $ 2,100 $ 2,920 $ 8,700 $ 20,000 $ 2,000 Business Solutions Unadjusted Trial Balance As on December 31, 2018 Accounts 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 Service Revenue Common Stock Retained Earnings Dividends Computer Service Revenue Depreciation Expenses - Office Equipment Depreciation Expenses - Computer Equipment Wages Expense Insurance Expense Rent Expense Computer Supplies Expense Advertising Expense Mileage Expense Miscellaneous Expense Repair Expense - Computer $ 1,900 $ 65,000 $ 7,500 $ 40,389 $ 2,940 $ 2,713 $ 832 $ 180 $ 1,205 Total $ 109,289 $ 109,289

3. Adjusted Entries -

Date Credit Business Solutions Adjusted Entries Accounts Title Computer Supplies Expense Computer Supplies (Being Supplies Utilised) Debit $ 3,985 a $ 3,985 b $ 525 Insurance Expense Prepaid Insurance (Being 3 months insurance expired) $ 525 C $ 460 Wages Expense Wages Payable (Being wages expense accrued) $ 460 d $ 1,250 Depreciation Expenses - Computer Equipment Accumulated Depreciation - Computer Equipment (Being Depreciation Expense incurred) $ 1,250 e $ 435 Depreciation Expenses - Office Equipment Accumulated Depreciation - Office Equipment (Being Depreciation Expense incurred) $ 435 f $ 2,190 Rent Expense Prepaid Rent $ 2,190 (Being Rent Expense Incurred)

4. Adjusted Trial Balance -

Credit Debit $ 50,286 $ 5,268 $ 660 $ 1,575 $ 730 $ 8,700 $ 435 $ 20,000 Business Solutions Adjusted Trial Balance As on December 31, 2018 Accounts 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 Service Revenue Common Stock Retained Earnings Dividends Computer Service Revenue Depreciation Expenses - Office Equipment Depreciation Expenses - Computer Equipment Wages Expense Insurance Expense Rent Expense Computer Supplies Expense Advertising Expense Mileage Expense Miscellaneous Expense Repair Expense - Computer $ 1,250 $ 2,000 $ 460 $ 1,900 $ 65,000 $ 7,500 $ 40,389 $ 435 $ 1,250 $ 3,400 $ 525 $ 2,190 $ 3,985 $ 2,713 $ 832 $ 180 $ 1,205 Total $ 111,434 $ 111,434

5. Income Statement -

6. Statement of Retained Earings -

Business Solutions Statement of Retained Earnings As on December 31, 2018 Retained Earnings, Opening $ Add: Net Income $ 23,674 Less: Dividends $ (7,500) $ 16,174 Retained Earnings, Closing $ 16,174