Question

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 $ 38,264 12,718 2,645 1,980 3,120 8,600 23,200 66,000 No. Account Title 101 Cash 106 Accounts receivable Acco 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 319 Dividends 403 Computer services revenue 612 Depreciation expense-Office equipment 613 Depreciation expense-Computer equipment 623 Wagne evne 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 5,900 36,174 2,450 1,648 674 240 735 $102,174 $102,174 Business Solutions had the following transactions and events in December 2019.

Answer 1

Business Solutions Journal Enteries Date Particulars 2.12.2019 Advertising expense a/c Dr. To Cash (Being Advertising expense paid in Cash) Debit in $Credit in $ 945 945 400 3.12.2019 Repairs expense - computer a/c Dr. To Cash (Being Computer repairs incurred in cash) 400 4550 4.12.2019 Cash a/c Dr. To Accounts Receivable (Being Cash received in Debtors) 4550 660 10.12.2019 Wage expense a/c Dr. To Cash (Being Wages paid in Lyn Addie) 660 2500 14.12.2019 Cash a/c Dr. To Unearned Computer service revenue (Being Cash received in advance from clients) 2500 1700 15.12.2019 Computer Supplies a/c Dr. To Accounts Payable (Being Computer Supplies purchased on account) 1700 16.12.2019 No Entry Dr. 6525 20.12.2019 Cash a/c To Computer Services Revenue (Being Cash received for project completed) 6525 3500 28.12.2019 Cash a/c Dr. To Accounts Receivable (Being Cash received from Debtors) 3500 135 135 29.12.2019 Mileage expense a/c Dr. To Cash (Being Mileage expense paid in cash) 500 x 0.27 31.12.2019 Dividends a/c Dr. To Cash (Being Dividends paid in cash) 1200 1200

Adjustment enteries Date Particulars Debit in $Credit in $ 31.12.2019 Computer supplies expense a/c Dr. 3735 To Computer Supplies 3735 2645 +1700-610 (Being Computer Supplies Expense charged to Computer Supplies) 495 495 31.12.2019 Insurance expense a/c Dr. To Prepaid Insurance 1980 * 3/12 (Being Insurance expense charged to Prepaid Insurance) 440 440 31.12.2019 Wage expense a/c Dr. To Wages Payable (Being Wages accrued) 110 x 4 31.12.2019 Depreciation - Computer a/c Dr. To Accumulated Depreciation - Computer 23200 * 3/(4*12) (Being Depreciation charged to Computer Equip.) 1450 1450 430 31.12.2019 Depreciation - office equip a/c Dr. To Accumulated Depreciation - Office Equip 8600 * 3/(5*12) (Being Depreciation charged to Office Equip.) 2340 2340 31.12.2019 Rent expense a/c Dr. To Prepaid Rent 3120 x 3/4 (Being Rent expense charged to Prepaid Rent) Dr. Closing Enteries Date Particulars 31.12.2019 Income Summary a/c To Depreciation - office equip To Depreciation - Computer To Wage expense To Insurance expense To Rent expense To Computer supplies expense To Advertising expense To Mileage expense To Miscellaneous expense To Repairs expense - computer Debit in $ Credit in $ 16777 430 1450 3550 495 2340 3735 2593 809 240 1135 Dr. 42699 31.12.2019 Computer Service Revenue a/c To Income Summary 42699 Dr. 25922 31.12.2019 Income Summary a/c To Retained earnings 25922 Dr. 7100 31.12.2019 Retained Earnings a/c To Divdends 7100

Unadjusted Trial Balance As at 31.12.2019 No. Particulars 101 Cash 106 Accounts Receivable 126 Computer Supplies 128 Prepaid Insurance 131 Prepaid Rent 163 Office Equipment 164 Accumulated Depreciation - Off. Equip 167 Computer Equipment 168 Accumulated Depreciation - Computer 201 Accounts Payable 210 Wages Payable 236 Unearned Computer service Revenue 307 Common Stock 318 Retained Earnings 319 Dividends 403 Computer Service Revenue 612 Depreciation - office equip 613 Depreciation - Computer 623 Wage expense 637 Insurance expense 640 Rent expense 652 Computer supplies expense 655 Advertising expense 676 Mileage expense 677 Miscellaneous expense 684 Repairs expense - computer Totals Unadjusted Adjustment Adjusted Post Closing Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ 51999 51999 51999 4668 4668 4668 4345 3735 610 610 1980 495 1485 1485 3120 2340 780 780 8600 8600 8600 0 430 430 430 23200 23200 23200 1450 1450 1450 1700 1700 1700 440 440 440 2500 2500 2500 66000 66000 66000 18822 7100 42699 42699 430 430 1450 1450 7100 0 3110 440 3550 495 2340 3735 2593 809 240 1135 112899 495 2340 3735 2593 809 240 1135 115219 112899 8890 8 890 115219 91342 91342

42699 430 1450 3550 Statement of Income For the period ending 31.12.2019 Computer Service Revenue Less: Depreciation - office equip Depreciation - Computer Wage expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expense Repairs expense - computer Net Income 495 2340 3735 2593 809 240 1135 16777 25922 Statement of Retained Earnings For the period ending 31.12.2019 Beginning Balance Net Income Dividends Ending Balance 25922 -7100 18822

Amounts in $ Amounts in $ Balance sheet As at 31.12.2019 Assets Current Assets Cash Accounts Receivable Computer Supplies Prepaid Insurance Prepaid Rent Amounts in $ Amounts in $ Liabilities Current Liabilities 51999 Accounts Payable 4668 Wages Payable 610 Unearned Computer service Revenue 1485 780 59542 1700 440 2500 4640 Shareholders Equity Common Stock 8170 Retained Earnings 66000 18822 84822 Non Current Assets Office Equipment Accumulated Depreciation Computer Equipment Accumulated Depreciation Total Assets 8600 -430 23200 -1450 21750 89462 Total Liabilities & Shareholders Equity 89462