Reference no: EM131273403
Serial Problem Business
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.
No.
|
Account Title
|
Debit
|
Credit
|
101
|
Cash
|
$
|
38,564
|
|
|
|
106
|
Accounts receivable
|
|
12,718
|
|
|
|
126
|
Computer supplies
|
|
2,645
|
|
|
|
128
|
Prepaid insurance
|
|
1,860
|
|
|
|
131
|
Prepaid rent
|
|
3,080
|
|
|
|
163
|
Office equipment
|
|
8,600
|
|
|
|
164
|
Accumulated depreciation-Office equipment
|
|
|
|
$
|
0
|
167
|
Computer equipment
|
|
20,400
|
|
|
|
168
|
Accumulated depreciation-Computer equipment
|
|
|
|
|
0
|
201
|
Accounts payable
|
|
|
|
|
0
|
210
|
Wages payable
|
|
|
|
|
0
|
236
|
Unearned computer services revenue
|
|
|
|
|
0
|
307
|
Common stock
|
|
|
|
|
70,000
|
318
|
Retained earnings
|
|
|
|
|
0
|
319
|
Dividends
|
|
5,800
|
|
|
|
403
|
Computer
services revenue
|
|
|
|
|
29,079
|
612
|
Depreciation expense-Office equipment
|
|
0
|
|
|
|
613
|
Depreciation expense-Computer equipment
|
|
0
|
|
|
|
623
|
Wages expense
|
|
2,175
|
|
|
|
637
|
Insurance expense
|
|
0
|
|
|
|
640
|
Rent expense
|
|
0
|
|
|
|
652
|
Computer supplies expense
|
|
0
|
|
|
|
655
|
Advertising expense
|
|
1,698
|
|
|
|
676
|
Mileage expense
|
|
634
|
|
|
|
677
|
Miscellaneous expenses
|
|
170
|
|
|
|
684
|
Repairs expense-Computer
|
|
735
|
|
|
|
|
|
|
|
|
|
|
|
Totals
|
$
|
99,079
|
|
$
|
99,079
|
|
|
|
|
|
|
|
Business Solutions had the following transactions and events in December 2015.
Dec. 2 Paid $1,010 cash to Hillside Mall for Business Solutions' share of mall advertising costs.
3 Paid $460 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 $110 per day.
14 Notified by Alex's Engineering Co. that Business Solutions' bid of $7,800 on a proposed project has been accepted. Alex's paid a $2,000 cash advance to Business Solutions.
15 Purchased $2,000 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 $6,375 cash.
22-26 Took the week off for the holidays.
28 Received $4,000 cash from Gomez Co. on its receivable.
29 Reimbursed S. Rey for business automobile mileage (500 miles at $0.32 per mile).
31 The company paid $1,100 cash in 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:
a. The December 31 inventory count of computer supplies shows $660 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 $110 per day.
d. The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.
e. The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.
f. 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.
1.1 Paid $1,010 cash to Hillside Mall for Business Solutions' share of mall advertising costs.
1.2 Paid $460 cash for minor repairs to the company's computer.
1.3 Received $4,850 cash from Alex's Engineering Co. for the receivable from November
1.4 Paid cash to Lyn Addie for six days of work at the rate of $110 per day.
1.5 Notified by Alex's Engineering Co. that Business Solutions' bid of $7,800 on a proposed project has been accepted. Alex's paid a $2,000 cash advance to Business Solutions.
1.6 Purchased $2,000 of computer supplies on credit from Harris Office Products.
1.7 Sent a reminder to Gomez Co. to pay the fee for services recorded on November 8.
1.8 Completed a project for Liu Corporation and received $6,375 cash.
1.9 Received $4,000 cash from Gomez Co. on its receivable.
1.10 Reimbursed S. Rey for business automobile mileage (500 miles at $0.32 per mile).
1.11 The company paid $1,100 cash in dividends.
2.1 Prepare adjusting entries to reflect a through f.
a. The December 31 inventory count of computer supplies shows $660 still available.
b. The December 31 inventory count of computer supplies shows $660 still available.
c. As of December 31, Lyn Addie has not been paid for four days of work at $110 per day.
d. The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.
e. The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.
f. Three of the four months' prepaid rent has expired.
2.2 Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger.
3.1 Prepare an adjusted trial balance as of December 31, 2015.
4. Prepare an income statement for the three months ended December 31, 2015.
5. 5. Prepare a statement of owner's equity for the three months ended December 31, 2015.
6. Prepare a balance sheet as of December 31, 2015.
7. 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.)
7.1 Record the entry to close the revenue account.
7.2Record the entry to close the expense accounts.
7.3 Record the entry to close the Income Summary account.
7.4 Record the entry to close the dividends account.
8. Prepare a post-closing trial balance as of December 31, 2015.
Describe a fictional healthcare organization and its techno
: How has the law protecting health information impacted access to healthcare information and According to the insights, posts, and press releases posted on the site, how successful has the law been at protecting health information?
|
How large will the revenue be six years later
: 2014 revenue of Celine, Inc. was $400,000. If sales grow at 5% per year, how large will the revenue be 6 years later? How much would $20,000 due in 30 years be worth today if the discount rate were 5%?
|
List the purposes of performance measurement system
: List the purposes of a performance measurement system. List and discuss the focus of the voice of the employee, voice of the business, and the voice of the customer. List the six basic steps involved in building the house of quality. List and discuss..
|
Relationship between human resource planning activities
: Discuss the relationship between human resource planning activities and the organization's strategic development and implementation. Describe the eight elements of the staffing process. Examine the relationship between the eight elements of the st..
|
Prepare an adjusted trial balance as of december
: Prepare an adjusted trial balance as of December 31, 2015 - Prepare an income statement for the three months ended December 31, 2015 and Prepare a statement of owner's equity for the three months ended December 31, 2015.
|
Healthcare management has become increasingly challenging
: Healthcare management has become increasingly challenging and complex in the 21st century. How do leadership strategies differ in healthcare organizations as compared to other types of organizations? What are the characteristics of healthcare organiz..
|
Analysis of a quality improvement program
: This week the Final Project is designed to give you an opportunity to analyze a quality improvement program. You will analyze data related to benchmarks and national standards and suggest two goals for initiatives that address any deficiencies/opp..
|
Discussed the nature of service-learning and gains
: Through the readings and the lectures this week, we have discussed the nature of service-learning and the gains that can often be associated with community involvement. We have also discussed the meaning of community and the importance of becoming ac..
|
Common criticisms of the traditional strategic planning
: 1. Identify and discuss common criticisms of the traditional strategic planning process. Then, explain how modern methods can avoid the faults for which strategic planning is criticized by the authors of your textbook.
|