The December 31, 2015, adjusted trial balance of Business Solutions (reflecting
ID: 2425808 • Letter: T
Question
The December 31, 2015, adjusted trial balance of Business Solutions (reflecting its transactions from October through December of 2015) follows.
No.
Account Title
Debit
Credit
101
Cash
$ 48,372
106
Accounts receivable
5,668
126
Accounts receivable
580
128
Computer supplies
1,665
131
Prepaid insurance
825
163
Office equipment
8,000
164
Accumulated depreciation—Office equipment
$ 400
167
Computer equipment
20,000
168
Accumulated depreciation—Computer equipment
1,250
201
Accounts payable
1,100
210
Wages payable
500
236
Unearned computer services revenue
1,500
301
S. Rey, Capital
73,000
302
S. Rey, Withdrawals
7,100
403
Computer services revenue
31,284
612
Depreciation expense—Office equipment
400
613
Depreciation expense—Computer equipment
1,250
623
Wages expense
3,875
637
Insurance expense
555
640
Rent expense
2,475
652
Computer supplies expense
3,065
655
Advertising expense
2,753
676
Mileage expense
896
677
Miscellaneous expenses
250
684
Repairs expense—Computer
1,305
901
Income summary
0
Totals
$109,034
$109,034
Please complete the following:
Record and post the necessary closing entries for Business Solutions.
Prepare a post-closing trial balance as of December 31, 2015.
No.
Account Title
Debit
Credit
101
Cash
$ 48,372
106
Accounts receivable
5,668
126
Accounts receivable
580
128
Computer supplies
1,665
131
Prepaid insurance
825
163
Office equipment
8,000
164
Accumulated depreciation—Office equipment
$ 400
167
Computer equipment
20,000
168
Accumulated depreciation—Computer equipment
1,250
201
Accounts payable
1,100
210
Wages payable
500
236
Unearned computer services revenue
1,500
301
S. Rey, Capital
73,000
302
S. Rey, Withdrawals
7,100
403
Computer services revenue
31,284
612
Depreciation expense—Office equipment
400
613
Depreciation expense—Computer equipment
1,250
623
Wages expense
3,875
637
Insurance expense
555
640
Rent expense
2,475
652
Computer supplies expense
3,065
655
Advertising expense
2,753
676
Mileage expense
896
677
Miscellaneous expenses
250
684
Repairs expense—Computer
1,305
901
Income summary
0
Totals
$109,034
$109,034
Explanation / Answer
Solution:
At the end of the period, the following closing entries were made:
Dec
31
Service Revenue
31284
Income summary
31284
Income summary
16824
Rent expense
2475
Wages Expense
3875
Supplies Expense
3065
Advertising expense
2753
Mileage Expense
896
Miscellaneous Expense
250
Repairs Expense
1305
Insurance expense
555
Depreciation Expense
1650
31
Income summary
14460
S. Rey capital
14460
31
S. Rey capital
7100
S. Rey drawings
7100
S.Rey Business solutions
Post closing trial balance
December 31, 2015
Account title
Debit
Credit
Cash
$48372
Accounts receivables
5668
Accounts receivables
580
Computer supplies
1665
Prepaid insurance
825
Office equipment
8000
Computer Equipment
20000
Accumulated depreciation
400
Accumulated depreciation-computer equipment
1250
Accounts payable
1100
Wages payable
500
Unearned computer services revenue
1500
S.Rey capital (73000-7100+14460)
80360
total
85110
85110
Dec
31
Service Revenue
31284
Income summary
31284
Income summary
16824
Rent expense
2475
Wages Expense
3875
Supplies Expense
3065
Advertising expense
2753
Mileage Expense
896
Miscellaneous Expense
250
Repairs Expense
1305
Insurance expense
555
Depreciation Expense
1650
31
Income summary
14460
S. Rey capital
14460
31
S. Rey capital
7100
S. Rey drawings
7100
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