Acc225 Fundamental Accounting Principles: Serial Problem 4 (SP4) Success Systems (Kay Breeze)

Acc225 Fundamental Accounting Principles

Serial Problem 4 (SP4)
The December 31, 2004, adjusted trial balance of Success Systems (reflecting its transactions from October through December of 2004) follows.
No. Account Title Debit Credit
101 Cash 58,160
106 Accounts receivable 5,668
126 Computer supplies 580
128 Prepaid insurance 1,665
131 Prepaid rent 825
163 Office equipment 8,000
164 Accumulated depreciation—Office equipment 400
167 Computer equipment 20,000
168 Accumulated depreciation—Computer equipment 1,250
201 Accounts payable 1,100
210 Wages payable 500
236 Unearned computer services revenue 1,500
301 K. Breeze, Capital 83,000
302 K. Breeze, Withdrawals 7,100
403 Computer services revenue 31,284
612 Depreciation expense—Office equipment 400
613 Depreciation expense—Computer equipment 1,250
623 Wages expense 3,875
637 Insurance expense 555
640 Rent expense 2,475
652 Computer supplies expense 3,065
655 Advertising expense 2,965
676 Mileage expense 896
677 Miscellaneous expenses 250
684 Repairs expense—Computer 1,305
901 Income Summary -
Totals $119,034 $119,034

Required:
1. Record and post the necessary closing entries for Success Systems.
2. Prepare a post-closing trial balance as of December 31, 2004.
Powered by