Question

After the success of the company’s first two months, Santana Rey continues to operate Business Solutions. The November 30, 2017, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2017) follows. No. Account Title Debit Credit 101 Cash $ 39,064 106 Accounts receivable 13,418 126 Computer supplies 2,645 128 Prepaid insurance 1,920 131 Prepaid rent 3,160 163 Office equipment 8,000 164 Accumulated depreciation—Office equipment $ 0 167 Computer equipment 20,800 168 Accumulated depreciation—Computer equipment 0 201 Accounts payable 0 210 Wages payable 0 236 Unearned computer services revenue 0 307 Common stock 65,000 318 Retained earnings 0 319 Dividends 6,500 403 Computer services revenue 36,164 612 Depreciation expense—Office equipment 0 613 Depreciation expense—Computer equipment 0 623 Wages expense 2,450 637 Insurance expense 0 640 Rent expense 0 652 Computer supplies expense 0 655 Advertising expense 1,658 676 Mileage expense 644 677 Miscellaneous expenses 180 684 Repairs expense—Computer 725 Totals $ 101,164 $ 101,164 Business Solutions had the following transactions and events in December 2017. Dec. 2 Paid $950 cash to Hillside Mall for Business Solutions’ share of mall advertising costs. 3 Paid $440 cash for minor repairs to the company’s computer. 4 Received $4,050 cash from Alex’s Engineering Co. for the receivable from November. 10 Paid cash to Lyn Addie for six days of work at the rate of $105 per day. 14 Notified by Alex’s Engineering Co. that Business Solutions’ bid of $7,600 on a proposed project has been accepted. Alex’s paid a $2,200 cash advance to Business Solutions. 15 Purchased $1,900 of computer supplies on credit from Harris Office Products. 16 Sent a reminder to Gomez Co. to pay the fee for services recorded on November 8. 20 Completed a project for Liu Corporation and received $5,825 cash. 22–26 Took the week off for the holidays. 28 Received $3,900 cash from Gomez Co. on its receivable. 29 Reimbursed S. Rey for business automobile mileage (500 miles at $0.30 per mile). 31 The company paid $1,400 cash in 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: The December 31 inventory count of computer supplies shows $640 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 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 has 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, 2017. 4. Prepare an income statement for the three months ended December 31, 2017. 5. Prepare a statement of retained earnings for the three months ended December 31, 2017. 6. Prepare a balance sheet as of December 31, 2017. 7. Record and post the necessary closing entries as of December 31, 2017. 8. Prepare a post-closing trial balance as of December 31, 2017.

If you look at other examples the numbers are different.. These are the new ones for 2018

Answer 1

1)
Date	General Journal	Debit	Credit
Dec 2	Advertising expense	$950.00
	Cash		$950.00
Dec 3	Repairs expense-computer	$440.00
	Cash		$440.00
Dec 4	Cash	$4,050.00
	Accounts receivable		$4,050.00
Dec 10	Wages expense (6 days x $105)	$630.00
	Cash		$630.00
Dec 14	Cash	$2,200.00
	Unearned computer services revenue		$2,200.00
Dec 15	Computer supplies	$1,900.00
	Accounts Payable		$1,900.00
Dec 16	No journal entry
Dec 20	Cash	$5,825.00
	Computer services revenue		$5,825.00
	22-26 Holidays
Dec 28	Cash	$3,900.00
	Accounts receivables		$3,900.00
Dec 29	Mileage expense (500 miles at $0.30 per mile)	$150.00
	Cash		$150.00
Dec 31	Dividend	$1,400.00
	Cash		$1,400.00