ing Cycle Project 3 - Financial ing Fundamentals 6d4b29
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9/30/12
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1.
value:
70.00 points
Serial Problem Business Solutions L.O. P1, P2, P3, P4, P5 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) follows. No. 101 106 126 128 131 163 164 167 168 201 210 236 307 318 319 403 612 613 623 637 640 652 655 676 677 684
Title Cash s receivable Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciation—Office equipment Computer equipment Accumulated depreciation—Computer equipment s payable Wages payable Unearned computer services revenue Common stock Retained earnings Dividends Computer services revenue Depreciation expense—Office equipment Depreciation expense—Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense—Computer
Debit $ 38,264 12,618 2,545 2,220 3,300 8,000
Totals
$ 98,659
Credit
$
0
20,000 0 0 0 0 73,000 0 5,600 25,659 0 0 2,625 0 0 0 1,728 704 250 805 $ 98,659
Business Solutions had the following transactions and events in December 2011. Dec. 2 Paid $1,025 cash to Hillside Mall for Business Solutions’ share of mall advertising costs. 3 Paid $500 cash for minor repairs to the company’s computer. 4 Received $3,950 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 $125 per day. 14 Notified by Alex's Engineering Co. that Business Solutions’ bid of $7,000 on a proposed project has been accepted. Alex’s paid a $1,500 cash advance to Business Solutions. 15 Purchased $1,100 of computer supplies on credit from Harris Office Products. 16 20 22– 26 28 29 31
Sent a reminder to Gomez Co. to pay the fee for services recorded on November 8. Completed a project for Liu Corporation and received $5,625 cash. Took the week off for the holidays. Received $3,000 cash from Gomez Co. on its receivable. Reimbursed S. Rey for business automobile mileage (600 miles at $0.32 per mile). The business paid $1,500 cash for 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: a. b. c. d. e. f.
The December 31 inventory count of computer supplies shows $580 still available. Three months have expired since the 12-month insurance was paid in advance. As of December 31, Lyn Addie has not been paid for four days of work at $125 per day. The company's computer is expected to have a four-year life with no salvage value. The office equipment is expected to have a five-year life with no salvage value. Three of the four months' prepaid rent has expired.
Required: 1. Prepare journal entries to record each of the December transactions and events for Business Solutions. (In cases where no entry is required, please select the option "No journal entry required" for your answer to grade correctly. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Date Dec. 2
General Journal Advertising expense
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Debit
Credit
1025
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Check Your Work Dec. 2
1025
Advertising expense
1025
Cash 3
Repairs expense-computer
500 500
Cash 4
3950
Cash
3950
s receivable 10
750
Wages expense
750
Cash 14
1500
Cash
1500
Unearned computer services revenue 15
1100
Computer supplies
1100
s payable 16
No journal entry required
0 0
No journal entry required 20
5625
Cash
5625
Computer services revenue
28
3000
Cash
3000
s receivable 29
192
Mileage expense
192
Cash 31
1500
Dividends
1500
Cash 2.1 Prepare adjusting entries to reflect a through f. (Omit the "$" sign in your response.) Date Dec. 31
General Journal Computer supplies expense
Debit 3065
Credit
3065
Computer supplies
Insurance expense
555 555
Prepaid insurance Wages expense
500 500
Wages payable Depreciation expense-computer equipment
1250 1250
Accumulated depreciation-computer equipment
Depreciation expense-office equipment
400 400
Accumulated depreciation-office equipment
Rent expense
2475
Prepaid rent
2475
2.2 Post the journal entries to record each of the December transactions and adjusting entries to the s in the ledger. (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)
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General Ledger s Cash Date Dec.
Debit 0
1
0
2
0
3 4
3950 0
10 14 20 28
1500 5625 3000 0
29
0
31
Date Dec.
1
s Receivable Debit 0 0
4
0
28
Date Dec.
1 15
Computer Supplies Debit 0 1100 0
31
Date Dec.
1
Credit
Prepaid Insurance Debit 0 0
31
0
38264
1025
37239
500
36739
0
40689
750
39939
0
41439
0
47064
0
50064
192
49872
1500
48372
Credit
Dec.
Debit 1
12618
3950
8668
3000
5668
Credit
31
Date Dec.
1
Date Dec.
2545
0
3645
3065
580
Credit
Office Equipment Debit 0
Date 1
0
Computer Equipment Debit 0
2220
555
1665 Acct. No. 131 Balance
0
3300
2475
825
Credit 0
400
Credit 0
Accumulated Depreciation—Computer Equipment
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Acct. No. 128 Balance
0
Accumulated Depreciation—Office Equipment Debit Credit 0 1 0
31
Dec.
0
Acct. No. 126 Balance
0
Credit 0
Acct. No. 106 Balance
0
Prepaid Rent Date
Acct. No. 101 Balance
Acct. No. 163 Balance 8000 Acct. No. 164 Balance 0 400 Acct. No. 167 Balance 20000 Acct. No. 168
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Debit
0
31
s Payable Debit 0
Date Dec.
1
0
15
Wages Payable Debit 0
Date Dec.
1
0
31
Date Dec.
1
0
Date 1
Date Dec.
1
0
1250
1250
Credit
0
1100
1100
Credit
0
500
500
Credit
Retained Earnings Debit 0
Credit
7100
31
0
Dec.
Debit
0
31
0
31
Dec.
1
0
20
31284
31
Date Dec.
1
31
Date Dec.
400 0
31
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1250 0
73000
Acct. No. 318 Balance
0
7360 Acct. No. 319 Balance
0
5600
1500
7100
7100
0 Acct. No. 403 Balance 25659
5625
31284
0
0 Acct. No. 612 Balance 0
0
400
400
0
Depreciation Expense—Computer Equipment Debit Credit 0 1 0
31
Acct. No. 307 Balance
14460
Depreciation Expense—Office Equipment Debit Credit 0 0
31
1500
14460
Computer Services Revenue Debit Credit 0 0
Date
0
0
Credit 0
1
Acct. No. 236 Balance
0
Dividends Date
Acct. No. 210 Balance
0
1500
0
Acct. No. 201 Balance
0
Common Stock Debit 0
31
Balance
0
Unearned Computer Services Revenue Debit Credit 0 0
14
Dec.
Credit 0
1
Acct. No. 613 Balance 0
0
1250
1250
0
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Date Dec.
1 10 31
Wages Expense Debit 0 750 500
Credit
Acct. No. 623 Balance
0
2625
0
3375
0
3875
3875
0
0 31
Date Dec.
1 31
Insurance Expense Debit 0 555 0
31
Credit 0
0
0
555
555
0
Rent Expense Date Dec.
Debit 1
31 31
Date Dec.
1 31 31
Date Dec.
1 2 31
Date Dec.
1 29 31
Date Dec.
1 31
Date Dec.
1 3 31
Date
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Credit 0
2475 0
0
Advertising Expense Debit 0 1025 0
Mileage Expense Debit 0 192 0
0
0
2475
2475
0
0
Income Summary Debit
0 3065
3065
0
Credit
Acct. No. 655 Balance
0
1728
0
2753
2753
0
Credit
Acct. No. 676 Balance
0
704
0
896
896
0
250
Repairs Expense - Computer Debit Credit 0 0 500
Acct. No. 652 Balance
0
Miscellaneous Expenses Debit Credit 0 0 0
Acct. No. 640 Balance
0
Computer Supplies Expense Debit Credit 0 0 3065
Acct. No. 637 Balance
Acct. No. 677 Balance 250 0
Acct. No. 684 Balance 805
0
1305
1305
0
Credit
Acct. No. 901 Balance
5/9
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Check Your Work 31 31 31
0 16824 14460
31284
31284
0
14460
0
0
3. Prepare an adjusted trial balance as of December 31, 2011. (The items in the Trial Balance should be grouped as follows: Assets and Liabilities (in order of their liquidity) then Equity, Revenues, and Expenses. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) BUSINESS SOLUTIONS Adjusted Trial Balance December 31, 2011 Cash
$
s receivable Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciation-office equipment Computer equipment Accumulated depreciation-computer equipment s payable Wages payable Unearned computer services revenue
Common stock Dividends Computer services revenue Depreciation expense-office equipment Depreciation expense-computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-computer
Totals
$
Debit 48372
Credit $
0
5668
0
580
0
1,665
0
825
0
8,000
0
0
400
20000
0
0
1250
0
1100
0
500
0
1500
0
73000
7100
0
0
31284
400
0
1,250
0
3,875
0
555
0
2,475
0
3,065
0
2,753
0
896
0
250
0
1,305
0
109034
$
109034
4. Prepare an income statement for the three months ended December 31, 2011. (Input all amounts as positive values. Omit the "$" sign in your response.)
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BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2011 Debit
Credit
Revenue $
Computer services revenue
31284
Expenses $
Depreciation expense-office equipment
400 1,250
Depreciation expense-computer equipment
3,875
Wages expense
555
Insurance expense
2,475
Rent expense
3,065
Computer supplies expense
2,753
Advertising expense
896
Mileage expense
250
Miscellaneous expenses
1,305
Repairs expense-computer
16824
Total expenses $
Net income
14460
5. Prepare a statement of retained earnings for the three months ended December 31, 2011. (Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values. Omit the "$" sign in your response.) BUSINESS SOLUTIONS Statement of Retained Earnings For Three Months Ended December 31, 2011 $ Retained earnings, October 1, 2011
0 14460
Add: Net income
14460 7100
Less: Dividends $
Retained earnings, December 31, 2011
7360
6. Prepare a balance sheet as of December 31, 2011. (Be sure to list the assets and liabilities in order of their liquidity. Amounts to be deducted should be indicated with minus sign. Omit the "$" sign in your response.) BUSINESS SOLUTIONS Balance Sheet December 31, 2011 Assets $
Cash
48372
s receivable
5668
Prepaid insurance
1,665
Prepaid rent
825
Computer supplies
580
Office equipment Accumulated depreciation-office equipment Computer equipment
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$
8000 -400
7600
20000
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-1250
Total Assets
18750 $
83460
$
1100
Liabilities s payable Wages payable
500
Unearned computer services revenue
1,500
Total Liabilities Equity
3100 73000
Common stock
7360
Retained earnings Total Equity
80360 $
Total Liabilities and Equity
83460
7. Record and post the necessary closing entries for Business Solutions. (Omit the "$" sign in your response.) Date Dec. 31, 2011
General Journal Computer services revenue
Debit 31284
Income summary
Dec. 31, 2011
31284
Income summary
16824
Depreciation expense–office equipment
400
Depreciation expense–computer equipment
1,250
Wages expense
3,875
Insurance expense
555
Rent expense
2,475
Computer supplies expense
3,065
Advertising expense
2,753
Mileage expense
896
Miscellaneous expenses
250
Repairs expense-computer
Dec. 31, 2011
Income summary
1,305
14460
Retained earnings
Dec. 31, 2011
Credit
Retained earnings
14460
7100
Dividends
7100
8. Prepare a post-closing trial balance as of December 31, 2011. (The items in the Trial Balance should be grouped as follows: Assets and Liabilities (in order of their liquidity) then Equity, Revenues, and Expenses. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) BUSINESS SOLUTIONS Post-Closing Trial Balance December 31, 2011
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$
Cash
Debit 48372
0
5668
s receivable Computer supplies
580
Prepaid insurance
1,665
Prepaid rent
0 0 0 0
825
Office equipment
0
8,000 0
Accumulated depreciation-office equipment Computer equipment Accumulated depreciation-computer equipment s payable Wages payable
Unearned computer services revenue Common stock Retained earnings
Totals
Credit
$
$
400
20000
0
0
1250
0
1100
0
500
0
1500
0
73000
0
7360
85110
$
85110
© 2011 The McGraw-Hill Companies. All rights reserved.
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9/9
Check Your Work
This window shows what is correct and incorrect for the work you have completed so far. Even if all of the work you have done so far is correct, you may not have completed everything.
1.
value:
70.00 points
Serial Problem Business Solutions L.O. P1, P2, P3, P4, P5 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) follows. No. 101 106 126 128 131 163 164 167 168 201 210 236 307 318 319 403 612 613 623 637 640 652 655 676 677 684
Title Cash s receivable Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciation—Office equipment Computer equipment Accumulated depreciation—Computer equipment s payable Wages payable Unearned computer services revenue Common stock Retained earnings Dividends Computer services revenue Depreciation expense—Office equipment Depreciation expense—Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense—Computer
Debit $ 38,264 12,618 2,545 2,220 3,300 8,000
Totals
$ 98,659
Credit
$
0
20,000 0 0 0 0 73,000 0 5,600 25,659 0 0 2,625 0 0 0 1,728 704 250 805 $ 98,659
Business Solutions had the following transactions and events in December 2011. Dec. 2 Paid $1,025 cash to Hillside Mall for Business Solutions’ share of mall advertising costs. 3 Paid $500 cash for minor repairs to the company’s computer. 4 Received $3,950 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 $125 per day. 14 Notified by Alex's Engineering Co. that Business Solutions’ bid of $7,000 on a proposed project has been accepted. Alex’s paid a $1,500 cash advance to Business Solutions. 15 Purchased $1,100 of computer supplies on credit from Harris Office Products. 16 20 22– 26 28 29 31
Sent a reminder to Gomez Co. to pay the fee for services recorded on November 8. Completed a project for Liu Corporation and received $5,625 cash. Took the week off for the holidays. Received $3,000 cash from Gomez Co. on its receivable. Reimbursed S. Rey for business automobile mileage (600 miles at $0.32 per mile). The business paid $1,500 cash for 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: a. b. c. d. e. f.
The December 31 inventory count of computer supplies shows $580 still available. Three months have expired since the 12-month insurance was paid in advance. As of December 31, Lyn Addie has not been paid for four days of work at $125 per day. The company's computer is expected to have a four-year life with no salvage value. The office equipment is expected to have a five-year life with no salvage value. Three of the four months' prepaid rent has expired.
Required: 1. Prepare journal entries to record each of the December transactions and events for Business Solutions. (In cases where no entry is required, please select the option "No journal entry required" for your answer to grade correctly. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Date Dec. 2
General Journal Advertising expense
ezto.mhecloud.mcgraw-hill.com/hm.tpx
Debit
Credit
1025
1/9
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Check Your Work Dec. 2
1025
Advertising expense
1025
Cash 3
Repairs expense-computer
500 500
Cash 4
3950
Cash
3950
s receivable 10
750
Wages expense
750
Cash 14
1500
Cash
1500
Unearned computer services revenue 15
1100
Computer supplies
1100
s payable 16
No journal entry required
0 0
No journal entry required 20
5625
Cash
5625
Computer services revenue
28
3000
Cash
3000
s receivable 29
192
Mileage expense
192
Cash 31
1500
Dividends
1500
Cash 2.1 Prepare adjusting entries to reflect a through f. (Omit the "$" sign in your response.) Date Dec. 31
General Journal Computer supplies expense
Debit 3065
Credit
3065
Computer supplies
Insurance expense
555 555
Prepaid insurance Wages expense
500 500
Wages payable Depreciation expense-computer equipment
1250 1250
Accumulated depreciation-computer equipment
Depreciation expense-office equipment
400 400
Accumulated depreciation-office equipment
Rent expense
2475
Prepaid rent
2475
2.2 Post the journal entries to record each of the December transactions and adjusting entries to the s in the ledger. (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)
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General Ledger s Cash Date Dec.
Debit 0
1
0
2
0
3 4
3950 0
10 14 20 28
1500 5625 3000 0
29
0
31
Date Dec.
1
s Receivable Debit 0 0
4
0
28
Date Dec.
1 15
Computer Supplies Debit 0 1100 0
31
Date Dec.
1
Credit
Prepaid Insurance Debit 0 0
31
0
38264
1025
37239
500
36739
0
40689
750
39939
0
41439
0
47064
0
50064
192
49872
1500
48372
Credit
Dec.
Debit 1
12618
3950
8668
3000
5668
Credit
31
Date Dec.
1
Date Dec.
2545
0
3645
3065
580
Credit
Office Equipment Debit 0
Date 1
0
Computer Equipment Debit 0
2220
555
1665 Acct. No. 131 Balance
0
3300
2475
825
Credit 0
400
Credit 0
Accumulated Depreciation—Computer Equipment
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Acct. No. 128 Balance
0
Accumulated Depreciation—Office Equipment Debit Credit 0 1 0
31
Dec.
0
Acct. No. 126 Balance
0
Credit 0
Acct. No. 106 Balance
0
Prepaid Rent Date
Acct. No. 101 Balance
Acct. No. 163 Balance 8000 Acct. No. 164 Balance 0 400 Acct. No. 167 Balance 20000 Acct. No. 168
3/9
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Debit
0
31
s Payable Debit 0
Date Dec.
1
0
15
Wages Payable Debit 0
Date Dec.
1
0
31
Date Dec.
1
0
Date 1
Date Dec.
1
0
1250
1250
Credit
0
1100
1100
Credit
0
500
500
Credit
Retained Earnings Debit 0
Credit
7100
31
0
Dec.
Debit
0
31
0
31
Dec.
1
0
20
31284
31
Date Dec.
1
31
Date Dec.
400 0
31
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1250 0
73000
Acct. No. 318 Balance
0
7360 Acct. No. 319 Balance
0
5600
1500
7100
7100
0 Acct. No. 403 Balance 25659
5625
31284
0
0 Acct. No. 612 Balance 0
0
400
400
0
Depreciation Expense—Computer Equipment Debit Credit 0 1 0
31
Acct. No. 307 Balance
14460
Depreciation Expense—Office Equipment Debit Credit 0 0
31
1500
14460
Computer Services Revenue Debit Credit 0 0
Date
0
0
Credit 0
1
Acct. No. 236 Balance
0
Dividends Date
Acct. No. 210 Balance
0
1500
0
Acct. No. 201 Balance
0
Common Stock Debit 0
31
Balance
0
Unearned Computer Services Revenue Debit Credit 0 0
14
Dec.
Credit 0
1
Acct. No. 613 Balance 0
0
1250
1250
0
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Date Dec.
1 10 31
Wages Expense Debit 0 750 500
Credit
Acct. No. 623 Balance
0
2625
0
3375
0
3875
3875
0
0 31
Date Dec.
1 31
Insurance Expense Debit 0 555 0
31
Credit 0
0
0
555
555
0
Rent Expense Date Dec.
Debit 1
31 31
Date Dec.
1 31 31
Date Dec.
1 2 31
Date Dec.
1 29 31
Date Dec.
1 31
Date Dec.
1 3 31
Date
ezto.mhecloud.mcgraw-hill.com/hm.tpx
Credit 0
2475 0
0
Advertising Expense Debit 0 1025 0
Mileage Expense Debit 0 192 0
0
0
2475
2475
0
0
Income Summary Debit
0 3065
3065
0
Credit
Acct. No. 655 Balance
0
1728
0
2753
2753
0
Credit
Acct. No. 676 Balance
0
704
0
896
896
0
250
Repairs Expense - Computer Debit Credit 0 0 500
Acct. No. 652 Balance
0
Miscellaneous Expenses Debit Credit 0 0 0
Acct. No. 640 Balance
0
Computer Supplies Expense Debit Credit 0 0 3065
Acct. No. 637 Balance
Acct. No. 677 Balance 250 0
Acct. No. 684 Balance 805
0
1305
1305
0
Credit
Acct. No. 901 Balance
5/9
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0 16824 14460
31284
31284
0
14460
0
0
3. Prepare an adjusted trial balance as of December 31, 2011. (The items in the Trial Balance should be grouped as follows: Assets and Liabilities (in order of their liquidity) then Equity, Revenues, and Expenses. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) BUSINESS SOLUTIONS Adjusted Trial Balance December 31, 2011 Cash
$
s receivable Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciation-office equipment Computer equipment Accumulated depreciation-computer equipment s payable Wages payable Unearned computer services revenue
Common stock Dividends Computer services revenue Depreciation expense-office equipment Depreciation expense-computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-computer
Totals
$
Debit 48372
Credit $
0
5668
0
580
0
1,665
0
825
0
8,000
0
0
400
20000
0
0
1250
0
1100
0
500
0
1500
0
73000
7100
0
0
31284
400
0
1,250
0
3,875
0
555
0
2,475
0
3,065
0
2,753
0
896
0
250
0
1,305
0
109034
$
109034
4. Prepare an income statement for the three months ended December 31, 2011. (Input all amounts as positive values. Omit the "$" sign in your response.)
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BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2011 Debit
Credit
Revenue $
Computer services revenue
31284
Expenses $
Depreciation expense-office equipment
400 1,250
Depreciation expense-computer equipment
3,875
Wages expense
555
Insurance expense
2,475
Rent expense
3,065
Computer supplies expense
2,753
Advertising expense
896
Mileage expense
250
Miscellaneous expenses
1,305
Repairs expense-computer
16824
Total expenses $
Net income
14460
5. Prepare a statement of retained earnings for the three months ended December 31, 2011. (Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values. Omit the "$" sign in your response.) BUSINESS SOLUTIONS Statement of Retained Earnings For Three Months Ended December 31, 2011 $ Retained earnings, October 1, 2011
0 14460
Add: Net income
14460 7100
Less: Dividends $
Retained earnings, December 31, 2011
7360
6. Prepare a balance sheet as of December 31, 2011. (Be sure to list the assets and liabilities in order of their liquidity. Amounts to be deducted should be indicated with minus sign. Omit the "$" sign in your response.) BUSINESS SOLUTIONS Balance Sheet December 31, 2011 Assets $
Cash
48372
s receivable
5668
Prepaid insurance
1,665
Prepaid rent
825
Computer supplies
580
Office equipment Accumulated depreciation-office equipment Computer equipment
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$
8000 -400
7600
20000
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Check Your Work Accumulated depreciation-computer equipment
-1250
Total Assets
18750 $
83460
$
1100
Liabilities s payable Wages payable
500
Unearned computer services revenue
1,500
Total Liabilities Equity
3100 73000
Common stock
7360
Retained earnings Total Equity
80360 $
Total Liabilities and Equity
83460
7. Record and post the necessary closing entries for Business Solutions. (Omit the "$" sign in your response.) Date Dec. 31, 2011
General Journal Computer services revenue
Debit 31284
Income summary
Dec. 31, 2011
31284
Income summary
16824
Depreciation expense–office equipment
400
Depreciation expense–computer equipment
1,250
Wages expense
3,875
Insurance expense
555
Rent expense
2,475
Computer supplies expense
3,065
Advertising expense
2,753
Mileage expense
896
Miscellaneous expenses
250
Repairs expense-computer
Dec. 31, 2011
Income summary
1,305
14460
Retained earnings
Dec. 31, 2011
Credit
Retained earnings
14460
7100
Dividends
7100
8. Prepare a post-closing trial balance as of December 31, 2011. (The items in the Trial Balance should be grouped as follows: Assets and Liabilities (in order of their liquidity) then Equity, Revenues, and Expenses. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) BUSINESS SOLUTIONS Post-Closing Trial Balance December 31, 2011
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Check Your Work
$
Cash
Debit 48372
0
5668
s receivable Computer supplies
580
Prepaid insurance
1,665
Prepaid rent
0 0 0 0
825
Office equipment
0
8,000 0
Accumulated depreciation-office equipment Computer equipment Accumulated depreciation-computer equipment s payable Wages payable
Unearned computer services revenue Common stock Retained earnings
Totals
Credit
$
$
400
20000
0
0
1250
0
1100
0
500
0
1500
0
73000
0
7360
85110
$
85110
© 2011 The McGraw-Hill Companies. All rights reserved.
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