Journal entries
Dec. 2
Advertising Expense .................................. 655
Cash .....................................................101
1,025
1,025
Paid share of mall advertising costs.
3
Repairs Expense–Computer ..................... 684
Cash .....................................................101
500
500
Repaired the computer.
4
Cash ............................................................. 101
Accounts Receivable ..........................106
3,950
3,950
Collected accounts receivable.
10
Wages Expense .......................................... 623
Cash .....................................................101
750
750
Paid employee for part-time work.
14
Cash ............................................................. 101
Unearned Computer Services Revenue ...236
1,500
1,500
Received advance on work to be performed.
15
Computer Supplies .................................... 126
Accounts Payable ...............................201
1,100
1,100
Purchased supplies on credit.
16
No entry recorded in the journal.
20
Cash ............................................................. 101
Computer Services Revenue .............403
5,625
5,625
Collected cash revenue from customer.
28
Cash ............................................................. 101
Accounts Receivable ..........................106
3,000
3,000
Collected accounts receivable.
29
Mileage Expense ........................................ 676
Cash .....................................................101
192
192
Reimbursed Lopez for mileage.
31
Dividends .................................................... 319
Cash .....................................................101
Paid cash for dividends.
1,500
1,500
Serial Problem — SP 3 (Continued)
Part 2
Adjusting entries
Dec. 31 Computer Supplies Expense .........................652
Computer Supplies .................................126
3,065
3,065
Adjustment for supplies used (supplies balance less cost of supplies available).
31 Insurance Expense .........................................637
Prepaid Insurance ...................................128
555
555
Adjustment for expired insurance (1/4 of original prepaid amount).
31 Wages Expense ..............................................623
Wages Payable ........................................210
500
500
Adjustment for accrued wages.
31 Depreciation Expense–Computer Equip .......613
Accumulated Depreciation—
Computer Equipment ...........................168
1,250
1,250
Adjustment for computer equipment depreciation:
Cost ......................................................... $20,000
Predicted life ........................................... 4 years
Annual depreciation (cost/life) ..............
$5,000
Expense for three months .....................
$1,250
31 Depreciation Expense—Office Equip ............612
Accumulated Depreciation—
Office Equipment ..................................164
400
400
Adjustment for office equipment depreciation:
Cost ..........................................................
$8,000
Predicted life ............................................ 5 years
Annual depreciation (cost/life) ...............
$1,600
Expense for three months ......................
$400
31 Rent Expense ..................................................640
Prepaid Rent ............................................131
Adjustment for expired rent (3/4 of original prepaid amount).
2,475
2,475
Serial Problem — SP 3 (Continued)
Part 3
SUCCESS SYSTEMS
Adjusted Trial Balance
December 31, 2009
Debit
Cash ........................................................................... $ 58,160
Accounts receivable .................................................
5,668
Computer supplies ...................................................
580