The December 31, 2015, adjusted trial balance of BusinessSolutions (reflecting its transactions from October throughDecember of 2015) follows.
No.
Account Title
Debit
Credit
101
Cash
$ 48,372
106
Accounts receivable
5,668
126
Accounts receivable
580
128
Computer supplies
1,665
131
Prepaid insurance
825
163
Office equipment
8,000
164
Accumulated depreciationâOffice equipment
$ 400
167
Computer equipment
20,000
168
Accumulated depreciationâComputer equipment
1,250
201
Accounts payable
1,100
210
Wages payable
500
236
Unearned computer services revenue
1,500
301
S. Rey, Capital
73,000
302
S. Rey, Withdrawals
7,100
403
Computer services revenue
31,284
612
Depreciation expenseâOffice equipment
400
613
Depreciation expenseâComputer equipment
1,250
623
Wages expense
3,875
637
Insurance expense
555
640
Rent expense
2,475
652
Computer supplies expense
3,065
655
Advertising expense
2,753
676
Mileage expense
896
677
Miscellaneous expenses
250
684
Repairs expenseâComputer
1,305
901
Income summary
0
Totals
$109,034
$109,034
Please complete the following:
Record and post the necessary closing entries for BusinessSolutions.
Prepare a post-closing trial balance as of December 31,2015.
The December 31, 2015, adjusted trial balance of BusinessSolutions (reflecting its transactions from October throughDecember of 2015) follows.
No. | Account Title | Debit | Credit |
101 | Cash | $ 48,372 | |
106 | Accounts receivable | 5,668 | |
126 | Accounts receivable | 580 | |
128 | Computer supplies | 1,665 | |
131 | Prepaid insurance | 825 | |
163 | Office equipment | 8,000 | |
164 | Accumulated depreciationâOffice equipment | $ 400 | |
167 | Computer equipment | 20,000 | |
168 | Accumulated depreciationâComputer equipment | 1,250 | |
201 | Accounts payable | 1,100 | |
210 | Wages payable | 500 | |
236 | Unearned computer services revenue | 1,500 | |
301 | S. Rey, Capital | 73,000 | |
302 | S. Rey, Withdrawals | 7,100 | |
403 | Computer services revenue | 31,284 | |
612 | Depreciation expenseâOffice equipment | 400 | |
613 | Depreciation expenseâComputer equipment | 1,250 | |
623 | Wages expense | 3,875 | |
637 | Insurance expense | 555 | |
640 | Rent expense | 2,475 | |
652 | Computer supplies expense | 3,065 | |
655 | Advertising expense | 2,753 | |
676 | Mileage expense | 896 | |
677 | Miscellaneous expenses | 250 | |
684 | Repairs expenseâComputer | 1,305 | |
901 | Income summary | 0 | |
Totals | $109,034 | $109,034 |
Please complete the following:
Record and post the necessary closing entries for BusinessSolutions.
Prepare a post-closing trial balance as of December 31,2015.
Related questions
Use the below adjusted trail balance to prepare the 3 basicfinancial statements on the forms provided. Also, use the NetIncome you get to calculate EPS (Earnings Per Share) assuming theweighted average shares are 550,000 and there are no PreferredDividends.
| Debit | Credit | |
| Cash | $558,160 | |
| Accounts Receivable | 5,668 | |
| Computer Supplies | 580 | |
| Prepaid Insurance | 1,665 | |
| Prepaid Rent | 825 | |
| Office Equipment | 8,000 | |
| Accumulated Depreciation-Office Equipment | $400 | |
| Computer Equipment | 30,000 | |
| Accumulated Depreciation-Computer Equipment | 1,250 | |
| Accounts Payable | 1,100 | |
| Wages Payable | 500 | |
| Unearned Computer ServicesRevenue | 1,500 | |
| Common Stock | 83,000 | |
| Retained Earnings | 10,000 | |
| Dividends | 7,100 | |
| Computer Services Revenue | 31,284 | |
| Depreciation Expense- OfficeEquipment | 400 | |
| Depreciation Expense -Computer Equipment | 1,250 | |
| Wages Expense | 3,875 | |
| Insurance Expense | 555 | |
| Rent Expense | 2,475 | |
| Computer Supplies Expense | 3,065 | |
| Advertising Expense | 2,965 | |
| Mileage Expense | 896 | |
| Miscellaneous Expenses | 250 | |
| Repairs Expense -Computer | 1,305 | |
| Totals | $129,034 | $129,034 |
After the success of the companyâs first two months, Santana Reycontinues to operate Business Solutions. (Transactions for thefirst two months are described in the serial problem of Chapter 2.)The November 30, 2015, unadjusted trial balance of BusinessSolutions (reflecting its transactions for October and November of2015) follows.
No. | Account Title | Debit | Credit |
101 | Cash | $38,264 | |
106 | Accounts receivable | 12,618 | |
126 | Computer supplies | 2,545 | |
128 | Prepaid insurance | 2,220 | |
131 | Prepaid rent | 3,300 | |
163 | Office equipment | 8,000 | |
164 | Accumulated depreciationâOffice equipment | $0 | |
167 | Computer equipment | 20,000 | |
168 | Accumulated depreciationâComputer equipment | 0 | |
201 | Accounts payable | 0 | |
236 | Unearned computer services revenue | 0 | |
301 | S. Rey, Capital | 73,000 | |
302 | S. Rey, Withdrawals | 5,600 | |
403 | Computer services revenue | 25,659 | |
612 | Depreciation expenseâOffice equipment | 0 | |
613 | Depreciation expenseâComputer equipment | 0 | |
623 | Wages expense | 2,625 | |
637 | Insurance expense | 0 | |
640 | Rent expense | 0 | |
652 | Computer supplies expense | 0 | |
655 | Advertising expense | 1,728 | |
676 | Mileage expense | 704 | |
677 | Miscellaneous expenses | 250 | |
684 | Repairs expenseâComputer | 805 | |
Totals | $98,659 | $98,659 |
Business Solutions had the following transactions and events inDecember 2015.
Dec. | 2 | Paid $1,025 cash to Hillside Mall for Business Solutionsâ shareof mall advertising costs. |
3 | Paid $500 cash for minor repairs to the companyâs computer. | |
4 | Received $3,950 cash from Alexâs Engineering Co. for thereceivable from November. | |
10 | Paid cash to Lyn Addie for six days of work at the rate of $125per day. | |
14 | Notified by Alexâs Engineering Co. that Business Solutionsâ bidof $7,000 on a proposed project has been accepted. Alexâs paid a$1,500 cash advance to Business Solutions. | |
15 | Purchased $1,100 of computer supplies on credit from HarrisOffice Products. | |
16 | Sent a reminder to Gomez Co. to pay the fee for servicesrecorded on November 8. | |
20 | Completed a project for Liu Corporation and received $5,625cash. | |
22-26 | Took the week off for the holidays. | |
28 | Received $3,000 cash from Gomez Co. on its receivable. | |
29 | Reimbursed S. Rey for business automobile mileage (600 miles at$0.32 per mile). | |
31 | S. Rey withdrew $1,500 cash from the company for personaluse. |
The following additional facts are collected for use in makingadjusting entries prior to preparing financial statements for thecompanyâs 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 insurancepremium was paid in advance.
C. As of December 31, Lyn Addie has not been paid for four daysof work at $125 per day.
D. The computer system, acquired on October 1, is expected tohave a four-year life with no salvage value.
E. The office equipment, acquired on October 1, is expected tohave a five-year life with no salvage value.
F. Three of the four monthsâ prepaid rent has expired.
Please complete the following:
Prepare journal entries to record each of the Decembertransactions and events for Business Solutions.Post those entriesto the accounts in the ledger.
Prepare adjusting entries to reflect a through f. Post thoseentries 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 December31, 2015.
Prepare a statement of ownerâs equity for the three months endedDecember 31, 2015.
Prepare a balance sheet as of December 31, 2015.
