SP 3
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