Serial Problem, SP 3 (Continued)
Part 3
BUSINESS SOLUTIONS
Adjusted Trial Balance
December 31, 2015
Debit Credit
Cash ……………………………………………………………….. $ 48,372
Accounts receivable ………………………………………… 5,668
Computer supplies …………………………………………… 580
Prepaid insurance ……………………………………………. 1,665
Prepaid rent …………………………………………………….. 825
Office equipment ……………………………………………… 8,000
Accumulated depreciation—Office equipment……. $ 400
Serial Problem, SP 3 (Continued)
Part 4
BUSINESS SOLUTIONS
Income Statement
For Three Months Ended December 31, 2015
Revenue
Computer services revenue……………………………….. $31,284
Expenses
Depreciation expense—Office equipment…………… $ 400
Depreciation expense—Computer equipment……… 1,250
Wages expense…………………………………………………. 3,875
Part 5
BUSINESS SOLUTIONS
Statement of Owner’s Equity
For Three Months Ended December 31, 2015
S. Rey, Capital, October 1, 2015…………………………… $73,000
Serial Problem, SP 3 (Continued)
Part 6
BUSINESS SOLUTIONS
Balance Sheet
December 31, 2015
Assets
Cash …………………………………………………………………… $ 48,372
Accounts receivable ……………………………………………. 5,668
Computer supplies ……………………………………………… 580
Prepaid insurance ……………………………………………….. 1,665
Liabilities
Accounts payable………………………………………………… $ 1,100
Equity
Serial Problem, SP 3 (Continued)
[Note: Ledger includes all entries from prior three months. The Working Papers shorten
the solution by showing account balances as of November 30.]
General Ledger
Cash Acct. No. 101
Date Explanation PR Debit Credit Balance
Oct. 1 45,000 45,000
2 3,300 41,700
5 2,220 39,480
8 1,420 38,060
15 4,800 42,860
Serial Problem, SP 3 (Continued)
Accounts Receivable Acct. No. 106
Date Explanation PR Debit Credit Balance
Oct. 6 4,800 4,800
12 1,400 6,200
15 4,800 1,400
Computer Supplies Acct. No. 126
Date Explanation PR Debit Credit Balance
Oct. 3 1,420 1,420
Prepaid Insurance Acct. No. 128
Date Explanation PR Debit Credit Balance
Prepaid Rent Acct. No. 131
Date Explanation PR Debit Credit Balance
Oct. 2 3,300 3,300
Dec. 31 2,475 825
Office Equipment Acct. No. 163
Date Explanation PR Debit Credit Balance
Accumulated Depreciation—Office Equipment Acct. No. 164
Date Explanation PR Debit Credit Balance
Serial Problem, SP 3 (Continued)
Computer Equipment Acct. No. 167
Date Explanation PR Debit Credit Balance
Accumulated Depreciation—Computer Equipment Acct. No. 168
Date Explanation PR Debit Credit Balance
Accounts Payable Acct. No. 201
Date Explanation PR Debit Credit Balance
Wages Payable Acct. No. 210
Date Explanation PR Debit Credit Balance
Dec. 31 500 500
Unearned Computer Services Revenue Acct. No. 236
Date Explanation PR Debit Credit Balance
S. Rey, Capital Acct. No. 301
Date Explanation PR Debit Credit Balance
Oct. 1 73,000 73,000
S. Rey, Withdrawals Acct. No. 302
Date Explanation PR Debit Credit Balance
Serial Problem, SP 3 (Continued)
Computer Services Revenue Acct. No. 403
Date Explanation PR Debit Credit Balance
Oct. 6 4,800 4,800
12 1,400 6,200
Depreciation Expense—Office Equipment Acct. No. 612
Date Explanation PR Debit Credit Balance
Depreciation Expense—Computer Equipment Acct. No. 613
Date Explanation PR Debit Credit Balance
Dec. 31 1,250 1,250
Wages Expense Acct. No. 623
Date Explanation PR Debit Credit Balance
Insurance Expense Acct. No. 637
Date Explanation PR Debit Credit Balance
Dec. 31 555 555
Serial Problem, SP 3 (Concluded)
Rent Expense Acct. No. 640
Date Explanation PR Debit Credit Balance
Dec. 31 2,475 2,475
Computer Supplies Expense Acct. No. 652
Date Explanation PR Debit Credit Balance
Advertising Expense Acct. No. 655
Date Explanation PR Debit Credit Balance
Mileage Expense Acct. No. 676
Date Explanation PR Debit Credit Balance
Miscellaneous Expense Acct. No. 677
Date Explanation PR Debit Credit Balance
Nov. 22 250 250
Repairs Expense—Computer Acct. No. 684
Date Explanation PR Debit Credit Balance