After the success of the company\'s first two months, Santana Rey continues to o
ID: 2403482 • Letter: A
Question
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. O. $ 39,164 12,918 2,645 1,980 2,960 8,400 1 Cash 106 Accounts receivable 126 Computer supplies 128 Prepaid insurance 131 Prepaid rent 163 Office equipment 164 Accumulated depreciation-Office equipment 167 Computer equipment 168 Accumulated depreciation- Computer equipment 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue 307 Common stock 318 Retained earnings 319 Dividends 403 Computer services revenue 612 Depreciation expense-Office equipment 613 Depreciation expense-Computer equipment 623 Wages expense 637 Insurance expense 640 Rent expense 652 Computer supplies expense 655 Advertising expense 676 Mileage expense 677 Miscellaneous expenses 684 Repairs expense-Computer 21,200 68,000 6,400 33,474 2.500 1,698 694 200 715 Totals $101.474 $101,474Explanation / Answer
Business Solution Date Particular Amount (Dr) Amount (Cr) 2-Dec Advertisement Expenses $ 995.00 To Cash $ 995.00 (Being amount paid to Hillside Mall) 3-Dec Repair Expenses $ 460.00 To Cash $ 460.00 (Being amount paid for computer repair) 4-Dec Cash $ 4,050.00 To Accounts Receivable $ 4,050.00 (Being amount received from Alex's Engineering Company) 10-Dec Wages Expenses $ 690.00 To Cash $ 690.00 (Being amount paid to Lyn Addie for 6 days work @$115) 14-Dec Cash $ 2,500.00 To Unearned Service Revenue $ 2,500.00 (Being amount received as advance) 15-Dec Comuter supplies $ 1,100.00 To Accounts Payable $ 1,100.00 (Being amount of purchase of Computer supples from Harris Office Products) 20-Dec Cash $ 5,775.00 To Computer Service Revenue $ 5,775.00 (Being amount of completed a project of Liu Corporation) 28-Dec Cash $ 3,500.00 To Accounts Receivable $ 3,500.00 (Being amount received Gomez Co,) 29-Dec Mileage Expenses(500*.32) $ 160.00 To Cash $ 160.00 (Being amount reimbursed to S.Rey) 31-Dec Dividend $ 1,300.00 To Cash $ 1,300.00 (Being amount paid for dividend) Adjusting Entries 31-Dec Computer Supplies Expenses($2645+$1100-$640) $ 3,105.00 To Computer Supplies $ 3,105.00 (Being amount of Computer Supplies Expenses) 31-Dec Insurance ($1980*3/12) $ 495.00 To Prepaid Insurance $ 495.00 (Being amount of Insurance Expenses) 31-Dec Wages $ 460.00 To Wages Payable $ 460.00 (Being amount of wages Payable) 31-Dec Depreciation-Computer Equipment($21200/4)*3/12 $ 1,325.00 To Accumulated Depreciation-Computer Equipment $ 1,325.00 (Being amount of Depreciation on Computer Equipment) 31-Dec Depreciation-Office Equipment($8400/5)*3/12 $ 420.00 To Accumulated Depreciation-Office Equipment $ 420.00 (Being amount of Depreciation on Office Equipment) 31-Dec Rent($2960*3/4) $ 2,220.00 To Prepaid Rent $ 2,220.00 (Being amount of Prepaid Rent) Cash A/c Date Particular Amt (DR) Amount (Cr) Balance 1-Dec Bal 39164 2-Dec Advertisement $ 995.00 38,169.00 3-Dec Computer Repair $ 460.00 37,709.00 4-Dec Accounts Receivable $ 4,050.00 41,759.00 10-Dec Wages $ 690.00 41,069.00 14-Dec Unearned Service Revenue $ 2,500.00 43,569.00 20-Dec Computer Service Revenue $ 5,775.00 49,344.00 28-Dec Accounts Receivable $ 3,500.00 52,844.00 29-Dec Mileage Expenses $ 160.00 52,684.00 31-Dec Dividend $ 1,300.00 51,384.00 Accounts Receivable Date Particular Amt (DR) Amount (Cr) Balance 1-Dec Bal 12918 4-Dec Cash $ 4,050.00 8,868.00 28-Dec Cash $ 3,500.00 5,368.00 Prepaid Rent Date Particular Amt (DR) Amount (Cr) Balance 1-Dec Bal $ 2,960.00 31-Dec Rent $ 2,220.00 740.00 Prepaid Insurance Date Particular Amt (DR) Amount (Cr) Balance 1-Dec Bal 1980 31-Dec Insurance $ 495.00 1,485.00 Rent Date Particular Amt (DR) Amount (Cr) Balance 1-Dec Bal $ - 31-Dec Rent 2220 2,220.00 Insurance Date Particular Amt (DR) Amount (Cr) Balance 1-Dec Bal 31-Dec Prepaid Insurance 495 495.00 Wages Expenses Date Particular Amt (DR) Amount (Cr) Balance 1-Dec Bal $ 2,500.00 10-Dec Cash $ 690.00 $ 3,190.00 31-Dec Wages Payable $ 460.00 $ 3,650.00 Mileage Expenses Date Particular Amt (DR) Amount (Cr) Balance 1-Dec Bal 694 29-Dec Cash $ 160.00 854 Depreciation Expense-Computer Equipment Date Particular Amt (DR) Amount (Cr) Balance 31-Dec Accumulated Depreciation $ 1,325.00 1325 Depreciation Expense-Office Equipment Date Particular Amt (DR) Amount (Cr) Balance 31-Dec Accumulated Depreciation $ 420.00 420 Dividend Date Particular Amt (DR) Amount (Cr) Balance 31-Dec Cash $ 1,300.00 1300