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After the success of the company?s first two months, Santana Rey continues to operate Business Solutions

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Question;After the success of the companys first two months;Santana;After the success of the;company?s first two months, Santana Rey continues to operate Business;Solutions. The November 30, 2011, unadjusted trial balance of Business;Solutions (reflecting its transactions for October and November of 2011);follows.;101;Cash;$;38,764;106;Accounts receivable;13,618;126;Computer supplies;2,645;128;Prepaid insurance;2,160;131;Prepaid rent;2,960;163;Office equipment;8,700;164;Accumulated depreciation?Office;equipment;$;0;167;Computer equipment;20,800;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;6,100;403;Computer services revenue;35,459;612;Depreciation expense?Office;equipment;0;613;Depreciation expense?Computer;equipment;0;623;Wages expense;2,525;637;Insurance expense;0;640;Rent expense;0;652;Computer supplies expense;0;655;Advertising expense;1,638;676;Mileage expense;604;677;Miscellaneous expenses;200;684;Repairs expense?Computer;745;Totals;$;101,459;$;101,459;Business Solutions had the;following transactions and events in December 2011.;Dec.;2;Paid $1,005 cash to Hillside Mall;for Business Solutions? share of mall advertising costs.;3;Paid $400 cash for minor repairs;to the company?s computer.;4;Received $4,050 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 $105 per day.;14;Notified;by Alex's Engineering Co. that Business Solutions? bid of $8,000 on a;proposed project has been accepted. Alex?s paid a $1,700 cash advance to;Business Solutions.;15;Purchased $1,400 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 $6,075 cash.;22?26;Took the week off for the;holidays.;28;Received $3,400 cash from Gomez;Co. on its receivable.;29;Reimbursed S. Rey for business;automobile mileage (400 miles at $0.32 per mile).;31;S. Rey withdrew $1,300 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;a.;The December 31 inventory count of;computer supplies shows $630 still available.;b.;Three months have expired since;the 12-month insurance premium was paid in advance.;c.;As of December 31, Lyn Addie has;not been paid for four days of work at $105 per day.;d.;The company's computer is expected;to have a four-year life with no salvage value.;e.;The office equipment is expected;to have a five-year life with no salvage value.;f.;Three of the four months' prepaid;rent has expired.;Required;1.;Prepare;journal entries to record each of the December transactions and events for;Business Solutions.(In cases where no entry is required, please select the;option "No journal entry required" for your answer to grade;correctly. Leave no cells blank - be certain to enter "0" wherever;required. Omit the "$" sign in your response.)

 

Paper#43652 | Written in 18-Jul-2015

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