USA need help accounting now please!

Oct 1, 2018
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United States
After the success of the company’s first two months, Santana Rey continues to operate Business Solutions. The November 30, 2017, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2017) follows.

No. Account Title Debit Credit
101 Cash $ 38,764
106 Accounts receivable 12,818
126 Computer supplies 2,545
128 Prepaid insurance 2,220
131 Prepaid rent 2,940
163 Office equipment 8,500
164 Accumulated depreciation—Office equipment $ 0
167 Computer equipment 21,600
168 Accumulated depreciation—Computer equipment 0
201 Accounts payable 0
210 Wages payable 0
236 Unearned computer services revenue 0
301 S. Rey, Capital 66,000
302 S. Rey, Withdrawals 6,200
403 Computer services revenue 34,899
612 Depreciation expense—Office equipment 0
613 Depreciation expense—Computer equipment 0
623 Wages expense 2,125
637 Insurance expense 0
640 Rent expense 0
652 Computer supplies expense 0
655 Advertising expense 1,678
676 Mileage expense 614
677 Miscellaneous expenses 190
684 Repairs expense—Computer 705
Totals $ 100,899 $ 100,899

Business Solutions had the following transactions and events in December 2017.

Dec. 2 Paid $1,000 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 $4,850 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 $120 per day.
14 Notified by Alex’s Engineering Co. that Business Solutions’ bid of $7,900 on a proposed project has been accepted. Alex’s paid a $2,200 cash advance to Business Solutions.
15 Purchased $1,700 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 $6,575 cash.
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 (500 miles at $0.24 per mile).
31 S. Rey withdrew $1,000 cash from the company for personal use.

The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company’s first three months:

  1. The December 31 inventory count of computer supplies shows $580 still available.
  2. Three months have expired since the 12-month insurance premium was paid in advance.
  3. As of December 31, Lyn Addie has not been paid for four days of work at $120 per day.
  4. The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.
  5. The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.
  6. Three of the four months' prepaid rent has expired.

1. Prepare journal entries to record each of the December transactions and events for Business Solutions.
2-a. Prepare adjusting entries to reflect a through f.
2-b. Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger.
3. Prepare an adjusted trial balance as of December 31, 2017.
4. Prepare an income statement for the three months ended December 31, 2017.
5. Prepare a statement of owner’s equity for the three months ended December 31, 2017.
6. Prepare a balance sheet as of December 31, 2017.

Journal entry worksheet


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Jul 18, 2016
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