Assume that on December 1, 2020, Lee Dunbar organizes a sole proprietorship company that will be known as App Solutions. App Solutions will initially perform 2 activities: Application Consulting and Programming.

The following transactions take place during the month of December:

Dec. 1 To start the business, Lee deposits $50,000 into the App Solution’s bank account.

Dec. 1 Web Solutions purchased a small office building for $220,000, paying $20,000 cash, and assuming a mortgage with a bank for the rest.

Dec. 1 Purchased supplies on account for $1,350.

Dec. 2 Received $7,500 cash for Application Consulting to be provided to customers in December.

Dec. 2 Paid a premium of $2,400 on a comprehensive insurance policy covering liability, theft, and fire. The policy covers a 1 year period, to November 30, 2020.

Dec. 2 Paid rent for the month of December, $1,800.

Dec. 3 Received an offer from a local retailer to rent the ground floor of the small office building purchased on Dec. 1^st. App Solutions received $3,600 for three months’ rent beginning December 1^st.

Dec. 4 Purchased computer equipment on account from Executive Supply Co. for $3,600.

Dec. 6 Paid $180 for a newspaper advertisement, to be run immediately.

Dec. 11 Paid creditors $400 for the Dec. 1^st supplies purchase.

Dec. 15 Paid a receptionist and part-time assistant $1,950 each for wages for first half of December.

Dec. 16 Received $3,100 from Programming fees earned for a completed Web site.

Dec. 16 Completed work for prepaid Application Consulting from Dec. 2.

Dec. 20 Paid $1,800 to Executive Supply Co. on the debt owed from the December 4^th transaction.

Dec. 21 Received $650 cash from customers for Application Consulting performed in the last few days.

Dec. 23 Purchased $1,450 of supplies by paying $550 in cash and charging the remainder on account.

Dec. 27 Paid the receptionist and the part-time assistant $1,950 each for wages for second half of December.

Dec. 31 Paid telephone for the month of December, $250.

Dec. 31 Paid $225 electricity bill for December.

Dec. 31 Received $2,870 cash from Application Consulting completed the last few days of December.

Dec. 31 Recognized Programming fees earned by not paid of $1,120 from the second half of December.

Dec. 31 Lee withdrew $3,000 from the company bank account for his own personal use.

Instructions:

1. Prepare the Documentation and Chart of Accounts worksheets (10 Marks).
2. Prepare journal entries in the General Journal for App Solutions for December. Do not make any adjustments for the month of December (22 Marks).
3. Post the journal entry amounts to T-accounts (10 Marks).
4. Create an Unadjusted Trial Balance for App Solutions for December 31, 2020 (8 Marks).

Please Note: Do not apply any adjustments for the month of December 2020.

Use an Excel Spreadsheet file with five worksheets:

First worksheet: Documentation

Second worksheet: Chart of Accounts.

Third worksheet: General Journal.

Fourth worksheet: T-Accounts.

Fifth worksheet: Unadjusted Trial Balance.

Answer rating: 100% (QA)

Documentation General Journal Date Accounts Debit Credit 121 Cash 50000 Mortgage Payable 200000 Building 220000 121 Accounts Payable 1350 122 Cash 750... View the full answer