Question

Question:(This serial problem started in Chapter 1 and continues through most of the chapters. If the Chapter 1 segment was not completed, the problem can begin at this point.)

SP 2 On October 1, 2017, Santana Rey launched a computer services company called Business Solutions, which provides consulting services, computer system installations, and custom program development. Rey adopts the calendar year for reporting purposes and expects to prepare the company’s first set of financial statements on December 31, 2017. The company’s initial chart of accounts follows.

Account No. Account No.

Cash ………………...................... 101 Common Stock ……………...... 307

Accounts Receivable ………….. 106 Dividends ………………………. 319

Computer Supplies …………….. 126 Computer Services Revenue ..403

Prepaid Insurance ……………….128 Wages Expense ………………. 623

Prepaid Rent ………………………131 Advertising Expense ………….655

Office Equipment ……………….. 163 Mileage Expense ……………… 676

Computer Equipment ……………167 Miscellaneous Expenses ……. 677

Accounts Payable ………………..201 Repairs Expense—Computer ..684

Required

3. Prepare a trial balance as of the end of November.

Short answer

Answer

The total of trial balance matches at $98,659

Step-by-step solution

No.of accounts

In the given case, there are 16 accounts in the general ledger out of the 13 accounts are having debit balances and the rest 3 of them are having a credit balance. These accounts have been listed in the trial balance in step 2.

Trial Balance

Business Solutions Trial Balance April 30
	Debit	Credit
Cash	$ 38,264
Accounts Receivables	12,618
Computer Supplies	2,545
Prepaid Insurance	2,220
Prepaid Rent	3,300
Office Equipment	8,000
Computer Equipment	20,000
Accounts Payable		0
Common Stock		73,000
Dividends	5,600
Computer Service Revenues		25,659
Wages Expenses	2,625
Advertising Expenses	1,728
Mileage Expenses	704
Miscellaneous Expenses	250
Repair expenses - Computer	805
Total	$ 98,659	$ 98,659