After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 3

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After The Success Of The Company S First Two Months Santana Rey Continues To Operate Business Solutions The November 3 1 (183.38 KiB) Viewed 32 times

After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30, 2021, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2021) follows. Number Account Title Debit Credit 101 Cash $ 38,864 106 Accounts receivable 13,018 2,645 126 Computer supplies 128 Prepaid insurance 2,040 131 Prepaid rent 3,040 163 Office equipment 8,900 164 Accumulated depreciation-Office equipment 167 Computer equipment 21,200 168 Accumulated depreciation-Computer equipment 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue 307 Common stock 318 Retained earnings 319 Dividends 5,900 403 Computer services revenue 612 0 Depreciation expense-Office equipment Depreciation expense-Computer equipment 613 0 623 Wages expense 2,350 637 Insurance expense 0 640 Rent expense 0 652 Computer supplies expense 0 655 Advertising expense 1,648 676 Mileage expense 624 677 Miscellaneous expenses 200 684 Repairs expense-Computer 805 901 Income summary Totals $ 101,234 $ 0 0 oooo 0 0 69,000 0 32,234 0 $ 101,234
Business Solutions had the following transactions and events in December 2021. December 2 Paid $1,025 cash to Hillside Mall for Business Solutions's share of mall advertising costs. December 3 Paid $490 cash for minor repairs to the company's computer. December 4 Received $4,950 cash from Alex's Engineering Company for the receivable from November. December 10 Paid cash to Lyn Addie for six days of work at the rate of $110 per day. December 14 Notified by Alex's Engineering Company that Business Solutions's bid of $7,300 on a proposed project has been accepted. Alex's paid a $1,500 cash advance to Business Solutions. December 15 Purchased $1,900 of computer supplies on credit from Harris Office Products. December 16 Sent a reminder to Gomez Company to pay the fee for services recorded on November 8. December 20 Completed a project for Liu Corporation and received $6,525 cash. December 22-26 Took the week off for the holidays. December 28 Received $3,600 cash from Gomez Company on its receivable. December 29 Reimbursed S. Rey for business automobile mileage (500 miles at $0.27 per mile). December 31 Paid $1,400 cash for 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 $640 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 have expired.
6. Prepare a classified balance sheet as of December 31, 2021.