OCT
1 Lopez invested $75,000 cash, a $25,000 computer system, and $10,000 of office equipment in the business.
2 Paid $3,500 cash for four months’ rent. (Hint: Debit Prepaid Rent for $3,500.)
3 Purchased $1,600 of computer supplies on credit from Corvina Office Products.
5 Paid $2,400 cash for one year’s premium on a property and liability insurance policy. (Hint: Debit Prepaid Insurance for $2,400.)
6 Billed Easy Leasing $6,200 for services performed in installing a new Web server.
8 Paid $1,600 cash for the computer supplies purchased from Corvina Office Products on October 3.
10 Hired Michelle Jones as a part-time assistant for $150 per day, as needed.
12 Billed Easy Leasing another $1,950 for services performed.
15 Received $6,200 cash from Easy Leasing on its account.
17 Paid $900 cash to repair computer equipment that was damaged when moving it.
20 Paid $1,790 cash for an advertisement in the local newspaper.
22 Received $1,950 cash from Easy Leasing on its account.
28 Billed Clark Company $7,300 for services performed.
31 Paid $1,050 cash for Michelle Jones’s wages for seven days’ work.
31 Lopez withdrew $4,000 cash for personal use.

Transaction
Date
Nov.
1 Reimbursed Lopez in cash for business automobile mileage allowance (Lopez logged 1,200 miles at $0.32 per mile).
2 Received $3,600 cash from Edge Corporation for computer services performed.
5 Purchased computer supplies for $1,750 cash from Corvina Office Products.
8 Billed Gomez Co. $6,500 for services performed.
13 Received notification from Alex’s Engineering Co. that Success Systems’ bid of $7,000 for an upcoming project is accepted.
18 Received $5,000 cash from Clark Company as partial payment of the October 28 bill.
22 Donated $300 cash to the United Way in the company’s name.
24 Completed work for Alex’s Engineering Co. and sent it a bill for $7,000.
25 Sent another bill to Clark Company for the past-due amount of $2,300.
28 Reimbursed Lopez in cash for business automobile mileage (1,500 miles at $0.32 per mile).
30 Paid $2,100 cash for Michelle Jones’s wages for 14 days’ work.
30 Lopez withdrew $2,500 cash for personal use.


Requirement 2:

Post journal entries to the subsidiary ledger accounts.

Requirement 3:

Prepare a trial balance as of the end of November 2008.

Requirement 4:

Prepare journal entries to record each of the December transactions and events for Success Systems as follows:

Transaction
Date
Dec
2 Paid $1,200 cash to Hilldale Mall for Success Systems’ share of mall advertising costs.
3 Paid $500 cash for minor repairs to the company’s computer.
4 Received $7,000 cash from Alex’s Engineering Co. for the receivable from November.
10 Paid cash to Michelle Jones for six days of work at the rate of $150 per day.
14 Notified by Alex ‘s Engineering Co. that Success Systems bid of $9,000 on a proposed project has been accepted.. Alex’s paid a $2,500 cash advance to Success Systems.
15 Purchased $2,100 of computer supplies on credit from Cain Office Products.
16 Sent a reminder to Gomez Co. to pay the fee for services recoded on November 8.
20 Completed a project for Chang Corporation and received $3,620 cash.
Took the week off for the holidays.
28 Received $3,000 cash from Gomez Co. on its receivable.
29 Reimbursed Lopez’s business automobile mileage (800 miles at $0.32 per mile).
31 Lopez withdrew $2,000 cash for personal use.

Requirement 5:

Post journal entries to the subsidiary ledger accounts.

Requirement 6:

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

1. The December 31 inventory count of computer supplies shows $775 still available.
2. Three months have expired since the 12-month insurance premium was paid in advance.
3. As of December 31, Michelle Jones has not been paid for four days of work at $150 per day.
4. The company’s computer is expected to have a five-year life with no salvage
value – Accumulated Depreciation for this period is $1,250.
5. The office equipment is expected to have a four-year life with no salvage value – Accumulated Depreciation for this period is $625.
6. Three of the four month’s prepaid rent has expired.

Prepare adjusting entries for the above, journalize the necessary adjusting entries, post these journal entries to the subsidiary accounts.

Requirement 7:

Prepare an adjusted trial balance as of December 31, 2008.




my Trial balance debits and credits are different amounts if any one can give me a check number.

Make sure your journalized your transactions properly and you debited and credited the correct accounts. Also check your math and calculate the correct amount for your adjusting entries.

You should have a trial balance before adjusting entries.

Use Excel to create a multi-column list. Use two columns for the trial balance, 2 for your adjusting entries, and 2 for your adjusted trial balance. One column is for your debit account balance and one coloumn is for you're your credit account balance. See one of my previous posts for an example of this. It is known as a worksheet.

I don't give check numbers. I check YOUR work that you have already completed. (I'm not going through and doing that much work without even seeing your efforts to do it!) Not to mention that there's a LOT going on there and you haven't said which trial balance doesn't balance. There's a lot of stuff that can be off there.

You need to make sure that October balanced. If it didn't, don't bother going on. (You can always go ahead with most of the journal entries, but don't expect anything to balance if anything before it doesn't balance.)

Whenever a trial balance does not come out, there is a series of steps you can follow, mostly working backwards. Re-add the columns if you haven't. (Make sure your figures are in agreement with themselves.) Figure out the difference between the two columns. Look for that number everywhere - in the trial balance, in the ledger accounts, in the journal entries. (You could have left something out.)

Then take that difference and divide it in two. Then also look for that number everywhere. Anything put on the wrong side will double itself. i.e. if you took a $50 debit and made it a credit, you'll actually be $100 off. So if you took the difference of $100 and divide in two, you'll have that $50 error. So always do this and look for that -- you may have something on the wrong side.

From there, work backwards. Your trial balance came from ledger accounts (or t accounts), so check them all to make sure you copied them correctly. Be careful doing this as it's easy to see what you think you're supposed to, or not notice that you missed an account.

Go back and check the math in each ledger account. Also glance through the journal and make sure every entry balanced to begin with.

And lastly, and only if you haven't found everything yet, go back and check all your postings. This is tedious and a hassle so save it for last.