SOLUTION: After the success of the company’s first two months, Santana Rey continues to operate Business Solutions. The November 30, 2021, unadjusted trial balance of Business Solutions (r

Question 1199056: After the success of the company’s first two months, Santana Rey continues to operate Business Solutions. The November 30, 2021, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2021) follows.

Number Account Title Debit Credit
101 Cash $ 38,264
106 Accounts receivable 12,918
126 Computer supplies 2,645
128 Prepaid insurance 2,100
131 Prepaid rent 3,000
163 Office equipment 8,400
164 Accumulated depreciation—Office equipment $ 0
167 Computer equipment 24,000
168 Accumulated depreciation—Computer equipment 0
201 Accounts payable 0
210 Wages payable 0
236 Unearned computer services revenue 0
307 Common stock 67,000
318 Retained earnings 0
319 Dividends 5,900
403 Computer services revenue 36,129
612 Depreciation expense—Office equipment 0
613 Depreciation expense—Computer equipment 0
623 Wages expense 2,625
637 Insurance expense 0
640 Rent expense 0
652 Computer supplies expense 0
655 Advertising expense 1,678
676 Mileage expense 644
677 Miscellaneous expenses 220
684 Repairs expense—Computer 735
901 Income summary 0
Totals $ 103,129 $ 103,129

Business Solutions had the following transactions and events in December 2021.

December 2 Paid $1,010 cash to Hillside Mall for Business Solutions's share of mall advertising costs.
December 3 Paid $480 cash for minor repairs to the company’s computer.
December 4 Received $4,250 cash from Alex’s Engineering Company for the receivable from November.
December 10 Paid cash to Lyn Addie for six days of work at the rate of $115 per day.
December 14 Notified by Alex’s Engineering Company that Business Solutions's bid of $7,300 on a proposed project has been accepted. Alex’s paid a $2,300 cash advance to Business Solutions.
December 15 Purchased $2,000 of computer supplies on credit from Harris Office Products.
December 16 Sent a reminder to Gomez Company to pay the fee for services recorded on November 8.
December 20 Completed a project for Liu Corporation and received $6,075 cash.
December 22-26 Took the week off for the holidays.
December 28 Received $3,600 cash from Gomez Company on its receivable.
December 29 Reimbursed S. Rey for business automobile mileage (400 miles at $0.28 per mile).
December 31 Paid $1,200 cash for dividends.

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 December 31 inventory count of computer supplies shows $590 still available.
Three months have expired since the 12-month insurance premium was paid in advance.
As of December 31, Lyn Addie has not been paid for four days of work at $115 per day.
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.
Three of the four months' prepaid rent have expired.

Required:
1. Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger.
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, 2021.
4. Prepare an income statement for the three months ended December 31, 2021.
5. Prepare a statement of retained earnings for the three months ended December 31, 2021.
6. Prepare a classified balance sheet as of December 31, 2021.
7. Record the necessary closing entries as of December 31, 2021.
8. Prepare a post-closing trial balance as of December 31, 2021.

Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger.

Found 2 solutions by ikleyn, MathTherapy:
Answer by ikleyn(52787) (Show Source): You can put this solution on YOUR website!
.

Do you really expect that somebody of the tutors at this forum
in healthy mind will start reading it on the voluntarily basis ?

Also, please take into account that the focus and the profile of this forum is totally different from that of your post,

so you definitely posted it to wrong web-site (wrong address).

Answer by MathTherapy(10552) (Show Source): You can put this solution on YOUR website!

Required: 1. Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger. 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, 2021. 4. Prepare an income statement for the three months ended December 31, 2021. 5. Prepare a statement of retained earnings for the three months ended December 31, 2021. 6. Prepare a classified balance sheet as of December 31, 2021. 7. Record the necessary closing entries as of December 31, 2021. 8. Prepare a post-closing trial balance as of December 31, 2021. You MUST be out of your mind. You'd really expaect someone to do all those things for you? And, if someone were crazy to do it, what would you be doing? Don't you think you need to do your accounting assignment yourself? Or, you may want to consider hiring a tutor who can help you, or maybe check your work when you've completed it, or done something! My gosh! Posting to the ledger, preparing unadjusted and adjusted TB, financial statements, BS, post-closing entries? Do you have any idea how time-consuming this could be?

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