After The Success Of The Company S First Two Months Santana Rey Continues To Operate 1942510

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After the success of the company’s first two months, Santana Rey continues to operate Business Solutions. The November 30, 2016, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2016) follows.

No.Account TitleDebitCredit101Cash$38,564106Accounts receivable13,018126Computer supplies2,545128Prepaid insurance1,980131Prepaid rent3,200163Office equipment8,100164Accumulated depreciation—Office equipment$0167Computer equipment20,400168Accumulated depreciation—Computer equipment0201Accounts payable0210Wages payable0236Unearned computer services revenue0307Common stock68,000318Retained earnings0319Dividends6,100403Computer services revenue31,529612Depreciation expense—Office equipment0613Depreciation expense—Computer equipment0623Wages expense2,325637Insurance expense0640Rent expense0652Computer supplies expense0655Advertising expense1,678676Mileage expense654677Miscellaneous expenses230684Repairs expense—Computer735Totals$99,529$99,529

Business Solutions had the following transactions and events in December 2016.

Dec.2Paid $930 cash to Hillside Mall for Business Solutions’s share of mall advertising costs.3Paid $470 cash for minor repairs to the company’s computer.4Received $4,450 cash from Alex’s Engineering Co. for the receivable from November.10Paid cash to Lyn Addie for six days of work at the rate of $115 per day.14Notified by Alex’s Engineering Co. that Business Solutions’s bid of $7,700 on a proposed project has been accepted. Alex’s paid a $2,000 cash advance to Business Solutions.15Purchased $1,900 of computer supplies on credit from Harris Office Products.16Sent a reminder to Gomez Co. to pay the fee for services recorded on November 8.20Completed a project for Liu Corporation and received $6,475 cash.22–26 Took the week off for the holidays.28Received $3,800 cash from Gomez Co. on its receivable.29Reimbursed S. Rey for business automobile mileage (500 miles at $0.32 per mile).31The company paid $1,000 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:

  1. The December 31 inventory count of computer supplies shows $590 still available.
  2. Three months have expired since the 12-month insurance premium was paid in advance.
  3. As of December 31, Lyn Addie has not been paid for four days of work at $115 per day.
  4. The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.
  5. The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.
  6. 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. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)