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pg_0059 - 652 Computer supplies expense 0 655 Advertising...

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Unformatted text preview: 652 Computer supplies expense ........................ 0 655 Advertising expense . . . . . ...... . ................. L940 676 Mileage expense ................................ 704 677 Miscellaneous expenses ........................... 250 684 Repairs expense—Computer ....................... 805 90| Income summary ................................ 0 Totals ........................................ $|08,659 $|08,659 .' 43 Succm Systems had the following transactions and events in December 2009. Dec. 2 Paid $1,025 cash to Hillside Mall for Success Systems’ 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 Success’s bid of $7,000 on a proposed project has been accepted. Alex’s paid a $1,500 cash advance to Success Systems. 15 Purchased $1,100 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 $5,625 cash. 22—26 Took the week off for the holidays. 28 Received $3,000 cash as partial payment from Gomez Co. on its receivable. 29 Reimbursed Lopez’s business automobile mileage (600 miles at $0.32 per mile). 31 Paid $1,500 cash for dividends. The following additional fiicls are collected for use in making adjusting entries prior to preparing financial statements for the company's first three months. a. The December 31 inventory count of computer supplil: shows $580 still available. b. Three months have expired since the 12—month insurance premium was paid in advance. c. As of December 31, Lyn Addie has notbeen paid for four days of work at $125 per day. d. The company's computer is expected to have a four—year life with no salvage value. c. The office equipment is expected to have a fiveyear life with no salvage value. 1'. Three of the four months" prepaid rent has expired. Required 1. P'repare journal entries to record each of the December transactions and events for Success Systems. Post those entries to the accounts in the ledger. 2. Prepare adjusting entries to reflect a through I Post those entries to the accounts in the ledger. Prepare an adjusted trial balance as ofDecember 31, 2009. Prepare an income statement and a statement ofretained earnings for the three months ended December 31, 2009. Prepare a balance sheet as ofDecember 31, 2009. 5. Record and post the necasary closing entries for Succm Systems. 6. Prepare a post—closing trial balance as ofDecember 31, 2009. Check (3) Adjusted trial balance totals, $119,034 (4) Total assets, 593,243 (6) Post—closing trial balance totals, 594,898 .' 44 :44 BEYOND THE NUMBERS REPORTING IN ACTION C1C2A1A2P4 ”it? BTN 3-1 Refer to Best Buy's financial statements in Appendix A to answer the following. .' 4; ...
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