After the success of the Company's first two months,Aster Turane has decided to continue operating Aster System. the unadjusted trial balance of Aster System(reflecting its transactions for October and November) follows.
After the success of the Company's first two months,Aster Turane has decided to continue operating Aster System. the unadjusted trial balance of Aster System(reflecting its transactions for October and November) follows. Aster System Trial Balance November 30th Code Account Title & Explanation Dr Cr 101 Cash $ 8,604.00 106 Accounts Receivable $ 12,380.00 126 Computer Supplies $ 2,395.00 128 Prepaid Insurance $ 8,640.00 131 Prepaid Rent $ 9,300.00 163 Office Equipment $ 12,000.00 167 Computer Equipment $ 5,040.00 301 Aster Turane's Capital $ 49,040.00 302 Aster Turane's Withdrawals $ 2,600.00 403 Computer service revenue $ 29,650.00 623 Wages Expense $ 8,970.00 655 Advertising expense $ 1,950.00 676 Mileage expense $ 5,936.00 677 Charitable Donation Expense $ 500.00 684 Repair Expense-Computer $ 375.00 Total $ 78,690.00 $ 78,690.00 Aster System had the following transactions and events in December 31st,2020. 3-Dec Paid $3800 cash to Kingsway Garden mall for the company's ,share of mall advertising costs for December. 3-Dec Paid $1040 cash for minor repairs to the Company's computer. 4-Dec Received the balance owing from Kinsetta Groceries. 10-Dec Paid Donald Gee for eight days work at the rate of $345 per day. 14-Dec Notified by Kinsetta Groceries that Aster System bid of $6500 on a proposed project was accepted. Kinsetta paid an advance of $3000. 17-Dec Purchased $740 of computer supplies on credit from Triple One supplies. 18-Dec Sent a reminder to Dinwoody entertainment to pay the $4230 for services recorded on November 8. 20-Dec Completed a project for Langara Lodge and received $1100 cash. 24-28dec Took the week off for the holidays. 31-Dec Received $1800 as partial payment from Dinwoody Entertainment. 31-Dec Reimbursed Aster Turane's business automobile expenses of (1800 km at $1.60 per Km) 31-Dec Aster Turane withdraw $800 cash from the business. The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company's first three months. a) The December 31st Inventory count of computer supplies shows $480 still available. b) Three months have expired since the 12-month insurance premium was paid in advance. c) As of December 31st, Donald Gee has not been paid for four days of work at $345 per day. d) The computer system acquired on October 1st is expected to have a five-year life with no salvage value. e) The office equipment acquired on October 1st is expected to have a ten-year life with no salvage value. f) Three of the six month's prepaid rent has expired. Required: 1) Prepare Journal Entries 2) Prepare Adjusting Journal Entries 3) Prepare Ledger Accounts(T-Accounts) 4) Prepare Trial Balance (Ans) $ 85,462.00 5) Prepare Income Statement 6) Prepare statement of Owner's Equity 7) Prepare Balance Sheet (Ans) $ 40,267.00 8) Prepare Post Closing Entries 9) Prepare Post Closing Trial Balance (Ans) $ 40,819.00