Serial problem chapter 3 accounting

Principles of Accounting I

Module 5 Homework Assignment

Directions: Please use an Excel Spreadsheet to present your homework (note: if you have a Mac, you may use Pages). Accounting homework cannot be accomplished in Microsoft Word. Please use the presentations that have been provided with the course as reference. Also, you may use the Generic Working Papers Excel Workbook found in the Course Resources to complete this assignment. Please visit the Course Resources section. Please note that you may have additional written homework alongside these application assignments.

Please complete the following exercises found at the end of Chapter 7:

Exercise 7-10
Exercise 7-11
BTN 7-5 (Taking It to the Net)
Answer questions #1-5. For question #5, please note the following:
Question 5. Read the following papers and analysis of Dell by IDC. Discuss how Dell is showing a 513% Return on Investment for its flash storage and why this is important globally. Since cloud storage is an intangible asset, how do you think this affects Dell's global portfolio? (Note that Dell became a private company in late 2013; therefore, it no longer reports to the SEC.)

BTN 7-8 (Global Decision)

Please complete the following exercises found at the end of Chapter 8 and Chapter 9:

Quick Study exercise: QS 8-8
Exercise 8-11
Exercise 8-12
Problem Set A: Problem 8-5A
Quick Study exercise: QS 9-1
Exercise 9-15
BTN 9-1 (Reporting in Action)
COURSE-LONG PROJECT DIRECTIONS: This course contains a course-long project in which you will work on a variety of problems in regards to a computer services company called Business Solutions. Each module will build upon one another, so it is important to complete each part successfully.

Please note that there are 4 total parts to the course-long project. You will have 2 weeks to complete each part. Please note the schedule below:

Part 1 will be due at the end of Module 2.
Part II will be due at the end of Module 4.
Part III will be due at the end of Module 6.
Part IV will be due at the end of Module 8.
This course-long project is a serial problem taken from your textbook. You can view the problem starting in Chapter 1. It will continue through Chapter 4. Please use the Generic Working Papers Excel Workbook found in the Course Resources to complete this project.

COURSE-LONG PROJECT: PART III (Modules 5 and 6)

Scenario: After the success of the company’s first two months, Santana Rey continues to operate Business Solutions. (Transactions for the first two months are described in the serial problem of Chapter 2.) The November 30, 2015, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2015) follows.

No.

Account Title

Debit

Credit

101

Cash

$38,264

106

Accounts receivable

12,618

126

Computer supplies

2,545

128

Prepaid insurance

2,220

131

Prepaid rent

3,300

163

Office equipment

8,000

164

Accumulated depreciation—Office equipment

$0

167

Computer equipment

20,000

168

Accumulated depreciation—Computer equipment

0

201

Accounts payable

0

236

Unearned computer services revenue

0

301

S. Rey, Capital

73,000

302

S. Rey, Withdrawals

5,600

403

Computer services revenue

25,659

612

Depreciation expense—Office equipment

0

613

Depreciation expense—Computer equipment

0

623

Wages expense

2,625

637

Insurance expense

0

640

Rent expense

0

652

Computer supplies expense

0

655

Advertising expense

1,728

676

Mileage expense

704

677

Miscellaneous expenses

250

684

Repairs expense—Computer

805

Totals

$98,659

$98,659

Business Solutions had the following transactions and events in December 2015.

Dec.

2

Paid $1,025 cash to Hillside Mall for Business Solutions’ 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 Business Solutions’ bid of $7,000 on a proposed project has been accepted. Alex’s paid a $1,500 cash advance to Business Solutions.

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 from Gomez Co. on its receivable.

29

Reimbursed S. Rey for business automobile mileage (600 miles at $0.32 per mile).

31

S. Rey withdrew $1,500 cash from the company for personal use.

The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company’s first three months:

The December 31 inventory count of computer supplies shows $580 still available.
Three months have expired since the 12-month insurance premium was paid in advance.
As of December 31, Lyn Addie has not been paid for four days of work at $125 per day.
The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.
The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.
Three of the four months’ prepaid rent has expired.
Please complete the following:

Prepare journal entries to record each of the December transactions and events for Business Solutions. Post those entries to the accounts in the ledger.
Prepare adjusting entries to reflect a through f. Post those entries to the accounts in the ledger.
Prepare an adjusted trial balance as of December 31, 2015.
Prepare an income statement for the three months ended December 31, 2015.
Prepare a statement of owner’s equity for the three months ended December 31, 2015.
Prepare a balance sheet as of December 31, 2015.
Note: You will submit your work at the end of the Module 6 Homework Assignment.