Solved by verified expert :After the success of the companys first two months,
After the success of the
company’s first two months, Santana Rey continues to operate Business
Solutions. The November 30, 2011, unadjusted trial balance of Business
Solutions (reflecting its transactions for October and November of 2011)
Unearned computer services revenue
S. Rey, Capital
S. Rey, Withdrawals
Computer services revenue
Computer supplies expense
Business Solutions had the
following transactions and events in December 2011.
Paid $1,005 cash to Hillside Mall
for Business Solutions’ share of mall advertising costs.
Paid $400 cash for minor repairs
to the company’s computer.
Received $4,050 cash from Alex’s
Engineering Co. for the receivable from November.
Paid cash to Lyn Addie for six
days of work at the rate of $105 per day.
by Alex’s Engineering Co. that Business Solutions’ bid of $8,000 on a
proposed project has been accepted. Alex’s paid a $1,700 cash advance to
Purchased $1,400 of computer
supplies on credit from Harris Office Products.
Sent a reminder to Gomez Co. to
pay the fee for services recorded on November 8.
Completed a project for Liu
Corporation and received $6,075 cash.
Took the week off for the
Received $3,400 cash from Gomez
Co. on its receivable.
Reimbursed S. Rey for business
automobile mileage (400 miles at $0.32 per mile).
S. Rey withdrew $1,300 cash from
the company for personal use.
following additional facts are collected for use in making adjusting entries
prior to preparing financial statements for the company’s first three months:
The December 31 inventory count of
computer supplies shows $630 still available.
Three months have expired since
the 12-month insurance premium was paid in advance.
As of December 31, Lyn Addie has
not been paid for four days of work at $105 per day.
The company’s computer is expected
to have a four-year life with no salvage value.
The office equipment is expected
to have a five-year life with no salvage value.
Three of the four months’ prepaid
rent has expired.
journal entries to record each of the December transactions and events for
Business Solutions.(In cases where no entry is required, please select the
option “No journal entry required” for your answer to grade
correctly. Leave no cells blank – be certain to enter “0” wherever
required. Omit the “$” sign in your response.)