Serial Problem Business Solutions LO P1, P2, P3, P4, P5 After the success of the
ID: 2339488 • Letter: S
Question
Serial Problem Business Solutions LO P1, P2, P3, P4, P5
After the success of the company’s first two months, Santana Rey continues to operate Business Solutions. The November 30, 2015, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2015) follows.
Notified by Alex’s Engineering Co. that Business Solutions’ bid of $7,000 on a proposed project has been accepted. Alex’s paid a $1,500 cash advance to Business Solutions.
The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company’s first three months:
The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.
The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.
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.)
2.1
Prepare adjusting entries to reflect a through f.
Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger.
Prepare an adjusted trial balance as of December 31, 2015.
Prepare an income statement for the three months ended December 31, 2015.
Prepare a statement of owner’s equity for the three months ended December 31, 2015. (Enter all amounts as positive values.)
Prepare a balance sheet as of December 31, 2015.
Record and post the necessary closing entries for Business Solutions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Prepare a post-closing trial balance as of December 31, 2015.
After the success of the company’s first two months, Santana Rey continues to operate Business Solutions. The November 30, 2015, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2015) follows.
Explanation / Answer
1. journal entries
2
Date Accounts title Dr Cr Dec 2 Advertising expense 1,025 To cash 1,025 3 Repairs expense—Computer 500 To cash 500 4 Cash 3,950 To Accounts receivable 3,950 10 Wages expense 750 To cash 750 14 Cash 1500 To Unearned computer services revenue 1500 15 Computer supplies 1100 To Accounts payable 1100 20 cash 5625 To Computer services revenue 5625 28 Cash 3000 To Accounts receivable 3000 29 Mileage expense 192 To cash 192 31 Dividend 1500 To cash 1500Related Questions
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