Uno Computer Services has had a successful two months of business since it started on October 1,

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Question:

Uno Computer Services has had a successful two months of business since it started on October 1, 2011. The transactions for October and November have already been posted to the General Ledger and are included in the trial balance below. (Hint you will want to start your General Ledger with the Trial balance numbers below)

Journalize and post the following December transactions:

Dec 2 Paid $300 to the Town Hall Shopping Centre for your share of advertising that benefited all businesses in the centre.

Dec 3 Paid $76 to repair the company’s computer.

Dec 5 Received total amount due of $1,500 AB Company as a result of the transaction on November 11.

Dec 6 Paid Ann White for four days’ work at her regular daily rate of $70.

Dec 9 Received notice from AB Company that our bid of $1, 850 for computer services was accepted. An advance of $450 was received.

Dec 11 Purchased on credit from Ajax Supply additional computer supplies, $85

Dec 12 Sent a second bill to Farm Research for Services originally recorded as $895 on November 8.

Dec 13 Received notice that Republic Bank had deducted a $4 service charge from the chequing account.

Dec 16 Paid Shopper Newspaper $15 for newspaper advertisement.

Dec 18 Completed work for Dog Enterprise and received $495.

Dec 20 Paid John $675 for personal use. ( John is the owner)

Dec 20 Ann White did not work during the last two weeks.

Dec 22—26 Took the week off for Christmas holiday.

Dec 29 Received a $450 payment from Farm Research on their outstanding account balance.

Dec 30 Paid utility bill of $51 and telephone bill of $110.

Dec 31 Reimbursed Ann’s business car mileage, 50 km., at $0.24 per km.

Dec 31 Reimbursed John’s business car mileage, 300 km., at $0.24 per km.

After journalizing and posting the above in the general ledger. Journalize the following adjusting entries from the information below and post to general ledger . Remember you are preparing information for the three month period since the business started.

a) Computer Supplies ending inventory, $17.

b) Three months’ insurance has expired. Annual policy paid October 1 for $195

c) December 31 falls on Wednesday, and Ann has worked three days, but will not be paid until Friday, January 2.

d) The computer purchased on October 1 is expected to have three year useful life with no salvage value.

e) The office equipment purchased October 1 is expected to have a four-year useful life with no salvage value.

f) Prepaid rent balance at December 31 should be $225

After you have journalized and posted the above transactions and adjusting entries, prepare an adjusted trial balance. Prepare in GOOD FORM the Income Statement for the last three months of 2011, a Statement of changes in owner’s equity for the last three months of 2011, and a classified Balance Sheet. Prepare the closing entries.

Uno Computer Services

Trial Balance

For two months ended November 30, 2011

Account Dr Cr

Cash	3,110
Accounts Receivable	2,620
Prepaid Insurance	195
Prepaid Rent	900
Computer Supplies	150
Office Equipment	340
Accum. Depreciation-euip		0
Computer	3,000
Accum. Depreciation-computer		0
Accounts Payable		0
Unearned Computer Fees		0
Wages Payable		0
John Conrad, Capital		8,340
John Conrad, Withdrawls	2,485
Computer Revenue		6,345
Advertising	15
Auto Expense	312
Computer repair expense	25
Hydro Expense	96
Misc	14
Telephone	233
Wages Expense	1,190