Serial Problem Business Solutions LO P2, P3The December 31, 2017, adjusted trial balance of...

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Accounting

Serial Problem Business Solutions LO P2, P3
The December 31, 2017, adjusted trial balance of BusinessSolutions (reflecting its transactions from October throughDecember of 2017) follows.

No AccountTitle Debit Credit
101 Cash $ 50,801
106 Accountsreceivable 5,568
126 Computersupplies 620
128 Prepaidinsurance 1,530
131 Prepaidrent 750
163 Officeequipment 8,900
164 Accumulateddepreciation—Office equipment $ 445
167 Computerequipment 22,400
168 Accumulateddepreciation—Computer equipment 1,400
201 Accountspayable 2,000
210 Wagespayable 460
236 Unearnedcomputer services revenue 2,100
301 S. Rey,Capital 64,000
302 S. Rey,Withdrawals 7,600
403 Computerservices revenue 44,944
612 Depreciationexpense—Office equipment 445
613 Depreciationexpense—Computer equipment 1,400
623 Wagesexpense 3,675
637 Insuranceexpense 510
640 Rentexpense 2,250
652 Computersupplies expense 4,025
655 Advertisingexpense 2,678
676 Mileageexpense 852
677 Miscellaneousexpenses 170
684 Repairsexpense—Computer 1,175
901 Incomesummary 0
Totals $ 115,349 $ 115,349

Required:
1. Record the closing entries for BusinessSolutionss.
2. Prepare a post-closing trial balance as of December 31, 2017

Answer & Explanation Solved by verified expert

3.8 Ratings (425 Votes)

1) . Record the closing entries for Business Solutionss.

Date	account and explanation	debit	credit
	Computer services revenue	44944
	Income summary		44944
	(To close revenue account)

	Income summary	17180
	Depreciation expense—Office equipment		445
	Depreciation expense—Computer equipment		1400
	Wages expense		3675
	Insurance expense		510
	Rent expense		2250
	Computer supplies expense		4025
	Advertising expense		2678
	Mileage expense		852
	Miscellaneous expenses		170
	Repairs expense—Computer		1175
	(To close expense account)

	Income summary	27764
	S. Rey, Capital		27764
	(To close income summary)

	S. Rey, Capital	7600
	S. Rey, Withdrawals		7600
	(To close withdrawal account)

2. Prepare a post-closing trial balance as of December 31, 2017

Account	Debit	Credit
Cash	50801
Accounts receivable	5568
Computer supplies	620
Prepaid insurance	1530
Prepaid rent	750
Office equipment	8900
Accumulated depreciation—Office equipment		445
Computer equipment	22400
Accumulated depreciation—Computer equipment		1400
Accounts payable		2000
Wages payable		460
Unearned computer services revenue		2100
S. Rey, Capital		84164

Totals	90569	90569

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In: AccountingSerial Problem Business Solutions LO P2, P3The December 31, 2017, adjusted trial balance of Business...Serial Problem Business Solutions LO P2, P3The December 31, 2017, adjusted trial balance of BusinessSolutions (reflecting its transactions from October throughDecember of 2017) follows. NoAccountTitleDebitCredit101Cash$50,801106Accountsreceivable5,568126Computersupplies620128Prepaidinsurance1,530131Prepaidrent750163Officeequipment8,900164Accumulateddepreciation—Office equipment$445167Computerequipment22,400168Accumulateddepreciation—Computer equipment1,400201Accountspayable2,000210Wagespayable460236Unearnedcomputer services revenue2,100301S. Rey,Capital64,000302S. Rey,Withdrawals7,600403Computerservices revenue44,944612Depreciationexpense—Office equipment445613Depreciationexpense—Computer equipment1,400623Wagesexpense3,675637Insuranceexpense510640Rentexpense2,250652Computersupplies expense4,025655Advertisingexpense2,678676Mileageexpense852677Miscellaneousexpenses170684Repairsexpense—Computer1,175901Incomesummary0Totals$115,349$115,349Required:1. Record the closing entries for BusinessSolutionss.2. Prepare a post-closing trial balance as of December 31, 2017

No	AccountTitle	Debit		Credit
101	Cash	$	50,801
106	Accountsreceivable		5,568
126	Computersupplies		620
128	Prepaidinsurance		1,530
131	Prepaidrent		750
163	Officeequipment		8,900
164	Accumulateddepreciation—Office equipment			$	445
167	Computerequipment		22,400
168	Accumulateddepreciation—Computer equipment				1,400
201	Accountspayable				2,000
210	Wagespayable				460
236	Unearnedcomputer services revenue				2,100
301	S. Rey,Capital				64,000
302	S. Rey,Withdrawals		7,600
403	Computerservices revenue				44,944
612	Depreciationexpense—Office equipment		445
613	Depreciationexpense—Computer equipment		1,400
623	Wagesexpense		3,675
637	Insuranceexpense		510
640	Rentexpense		2,250
652	Computersupplies expense		4,025
655	Advertisingexpense		2,678
676	Mileageexpense		852
677	Miscellaneousexpenses		170
684	Repairsexpense—Computer		1,175
901	Incomesummary				0
	Totals	$	115,349	$	115,349