After the success of the company’s first two months, Santana Rey continues to op
ID: 2430305 • 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: Already have adjusting entries, just need help with Adjusted Trial Balance, Income Statement, Retained Earnings, Balance Sheet, and Post Closing Trial Balance.
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
Answer 3. Business Solution Adjusted Trial Balance Dec 31, 2015 Accounts Title Debits Credits Cash 51,314.00 Accounts Receivable 5,068.00 Computer Supplies 600.00 Prepaid Insurance 1,530.00 Prepaid Rent 795.00 Office Equipment 8,900.00 Accumulated Dep.- Equipment 445.00 Computer Equipment 23,200.00 Accumulated Dep.- Computer Equipment 1,450.00 Accounts Payable 1,200.00 Wages Payable 440.00 Unearned Computer Service Revenue 1,800.00 Common Stock 67,000.00 Dividends 7,300.00 Computer Service Revenue 42,854.00 Dep. Exp. - Office Equipment 445.00 Dep. Exp. - Computer Equipment 1,450.00 Wages Expense 3,575.00 Insurance Expense 510.00 Rent Expense 2,385.00 Computer Supplies Expense 3,145.00 Advertising Expense 2,663.00 Mileage Expense 804.00 Misc. Expense 240.00 Repair Expense - Computer 1,265.00 Total 115,189.00 115,189.00 - Answer 4. Business Solution Income Statement For Three Months Ended Dec 31, 2015 Revenues: Computer Service Revenue 42,854.00 Expenses Dep. Exp. - Office Equipment 445.00 Dep. Exp. - Computer Equipment 1,450.00 Wages Expense 3,575.00 Insurance Expense 510.00 Rent Expense 2,385.00 Computer Supplies Expense 3,145.00 Advertising Expense 2,663.00 Mileage Expense 804.00 Misc. Expense 240.00 Repair Expense - Computer 1,265.00 Total Expenses 16,482.00 Net Income (Loss) 26,372.00 Answer 5. Business Solution Statement of Retained Earnings For Three Months Ended Dec 31, 2015 Beginning Balance - Net Income (Loss) 26,372.00 Sub-total 26,372.00 Dividends (7,300.00) Ending Balance - Dec 31, 2016 19,072.00 Answer 6. Business Solution Balance Sheet Dec 31, 2017 Assets Current Assets Cash 51,314.00 Accounts Receivable 5,068.00 Computer Supplies 600.00 Prepaid Insurance 1,530.00 Prepaid Rent 795.00 Total Current Assets 59,307.00 Property, Plant & Equipment Office Equipment 8,900.00 Accumulated Dep.- Equipment (445.00) 8,455.00 Computer Equipment 23,200.00 Accumulated Dep.- Computer Equipment (1,450.00) 21,750.00 Total Property, Plant & Equipment 30,205.00 Total Assets 89,512.00 Liabilities & Owners' Equity Liabilities Current Liabilities Accounts Payable 1,200.00 Wages Payable 440.00 Unearned Computer Service Revenue 1,800.00 Total Current Liabilities 3,440.00 Long-Term Liabilities - Total Liabilities 3,440.00 Total StockHolders' Equity Common Stock 67,000.00 Retained Earnings 19,072.00 Total Stockholders' Equity 86,072.00 Total Liabilities & Stockholders' Equity 89,512.00 - Answer 8. Business Solution Closing Trial Balance Dec 31, 2016 Accounts Title Debits Credits Cash 51,314.00 Accounts Receivable 5,068.00 Computer Supplies 600.00 Prepaid Insurance 1,530.00 Prepaid Rent 795.00 Office Equipment 8,900.00 Accumulated Dep.- Equipment 445.00 Computer Equipment 23,200.00 Accumulated Dep.- Computer Equipment 1,450.00 Accounts Payable 1,200.00 Wages Payable 440.00 Unearned Computer Service Revenue 1,800.00 Common Stock 67,000.00 Retained Earnings 19,072.00 Total 91,407.00 91,407.00