After the success of the company’s first two months, Santana Rey continues to op
ID: 2430206 • 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.
Question: Need help on how to post the following adjusting entries below.
Notified by Alex’s Engineering Co. that Business Solutions’ bid of $8,000 on a proposed project has been accepted. Alex’s paid a $1,800 cash advance to Business Solutions.
The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company’s first three months:
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.
Explanation / Answer
Business Solution Date Particular Amount (Dr) Amount (Cr) 2-Dec Advertisement Expenses $ 975.00 To Cash $ 975.00 (Being amount paid to Hillside Mall) 3-Dec Repair Expenses $ 480.00 To Cash $ 480.00 (Being amount paid for computer repair) 4-Dec Cash $ 4,650.00 To Accounts Receivable $ 4,650.00 (Being amount received from Alex's Engineering Company) 10-Dec Wages Expenses $ 660.00 To Cash $ 660.00 (Being amount paid to Lyn Addie for 6 days work @$110) 14-Dec Cash $ 1,800.00 To Unearned Service Revenue $ 1,800.00 (Being amount received as advance) 15-Dec Comuter supplies $ 1,200.00 To Accounts Payable $ 1,200.00 (Being amount of purchase of Computer supples from Harris Office Products) 20-Dec Cash $ 6,575.00 To Computer Service Revenue $ 6,575.00 (Being amount of completed a project of Liu Corporation) 28-Dec Cash $ 3,100.00 To Accounts Receivable $ 3,100.00 (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 $ 1,400.00 To Cash $ 1,400.00 (Being amount paid for dividend) Adjusting Entries 31-Dec Computer Supplies Expenses($2545+$1200-$600) $ 3,145.00 To Computer Supplies $ 3,145.00 (Being amount of Computer Supplies Expenses) 31-Dec Insurance ($1980*3/12) $ 510.00 To Prepaid Insurance $ 510.00 (Being amount of Insurance Expenses) 31-Dec Wages $ 440.00 To Wages Payable $ 440.00 (Being amount of wages Payable) 31-Dec Depreciation-Computer Equipment($23200/4)*3/12 $ 1,450.00 To Accumulated Depreciation-Computer Equipment $ 1,450.00 (Being amount of Depreciation on Computer Equipment) 31-Dec Depreciation-Office Equipment($8900/5)*3/12 $ 445.00 To Accumulated Depreciation-Office Equipment $ 445.00 (Being amount of Depreciation on Office Equipment) 31-Dec Rent($3180*3/4) $ 2,385.00 To Prepaid Rent $ 2,385.00 (Being amount of Prepaid Rent) Cash A/c Date Particular Amt (DR) Amount (Cr) Balance 1-Dec Bal 38864 2-Dec Advertisement $ 975.00 37,889.00 3-Dec Computer Repair $ 480.00 37,409.00 4-Dec Accounts Receivable $ 4,650.00 42,059.00 10-Dec Wages $ 660.00 41,399.00 14-Dec Unearned Service Revenue $ 1,800.00 43,199.00 20-Dec Computer Service Revenue $ 6,575.00 49,774.00 28-Dec Accounts Receivable $ 3,100.00 52,874.00 29-Dec Mileage Expenses $ 160.00 52,714.00 31-Dec Dividend $ 1,400.00 51,314.00 Accounts Receivable Date Particular Amt (DR) Amount (Cr) Balance 1-Dec Bal 12818 4-Dec Cash $ 4,650.00 8,168.00 28-Dec Cash $ 3,100.00 5,068.00 Prepaid Rent Date Particular Amt (DR) Amount (Cr) Balance 1-Dec Bal $ 3,180.00 31-Dec Rent $ 2,385.00 795.00 Prepaid Insurance Date Particular Amt (DR) Amount (Cr) Balance 1-Dec Bal 2040 31-Dec Insurance $ 510.00 1,530.00 Rent Date Particular Amt (DR) Amount (Cr) Balance 1-Dec Bal $ - 31-Dec Rent $ 2,385.00 2,385.00 Insurance Date Particular Amt (DR) Amount (Cr) Balance 1-Dec Bal 31-Dec Prepaid Insurance $ 510.00 510.00 Wages Expenses Date Particular Amt (DR) Amount (Cr) Balance 1-Dec Bal $ 2,475.00 10-Dec Cash $ 660.00 $ 3,135.00 31-Dec Wages Payable $ 440.00 $ 3,575.00 Mileage Expenses Date Particular Amt (DR) Amount (Cr) Balance 1-Dec Bal 644 29-Dec Cash $ 160.00 804.00 Depreciation Expense-Computer Equipment Date Particular Amt (DR) Amount (Cr) Balance 31-Dec Accumulated Depreciation $ 1,450.00 $ 1,450.00 Depreciation Expense-Office Equipment Date Particular Amt (DR) Amount (Cr) Balance 31-Dec Accumulated Depreciation $ 445.00 $ 445.00 Dividend Date Particular Amt (DR) Amount (Cr) Balance 31-Dec Cash $ 1,400.00 $ 1,400.00