The December 31 inventory count of computer supplies shows $590 still available. Three months have expired since
Question:
- The December 31 inventory count of computer supplies shows $590 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 $115 per day.
- The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.
- The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.
- Three of the four months' prepaid rent have expired.
Required:
1.Prepare journal entries to record each of the December transactions and events for Business Solutions.
2-a. Prepare adjusting entries to reflect a through f.
2-b. Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger.
3. Prepare an adjusted trial balance as of December 31, 2019.
4. Prepare an income statement for the three months ended December 31, 2019.
5. Prepare a statement of owner’s equity for the three months ended December 31, 2019.
6. Prepare a balance sheet as of December 31, 2019.
General journal entry 2: Dec 3 -Paid $450 cash for minor repairs to the company’s computer.
General journal entry 3: Dec 4- Received $4,650 cash from Alex’s Engineering Co. for the receivable from November.
General journal entry 4: Dec 10- Paid cash to Lyn Addie for six days of work at the rate of $115 per day.
General journal entry 5: Dec 14- Notified by Alex's Engineering Co. that Business Solutions' bid of $7,800 on a proposed project has been accepted. Alex’s paid a $2,100 cash advance to Business Solutions.
General journal entry 6: Dec 15- Purchased $1,400 of computer supplies on credit from Harris Office Products.
General journal entry 7: Dec 16- Sent a reminder to Gomez Co. to pay the fee for services recorded on November 8.
General journal entry 8: Dec 20- Completed a project for Liu Corporation and received $5,875 cash.
General journal entry 9: Dec 28- Received $3,100 cash from Gomez Co. on its receivable.
General journal entry 10: Dec 29- Reimbursed S. Rey for business automobile mileage (500 miles at $0.29 per mile).
General journal entry 11: Dec 31- S. Rey withdrew $1,400 cash from the company for personal use.
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General journal entry 2: b) Three months have expired since the 12-month insurance premium was paid in advance.
General journal entry 3: c) As of December 31, Lyn Addie has not been paid for four days of work at $115 per day.
General journal entry 4: d) The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.
General journal entry 5: e) The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.
General journal entry 6: f) Three of the four months' prepaid rent has expired.
Financial Accounting Information for Decisions
ISBN: 978-1259917042
9th edition
Authors: John J. Wild