Homework Assignment 5 Stephanie Noland Allied American University

Homework Assignment 5 1
Homework Assignment 5

Homework Assignment 5
Stephanie Noland
Allied American University

Author Note
This paper was prepared for ACC 225, Homework Assignment 5 taught by Debbie Wilson

Homework Assignment 5 2
ACC225: 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)
o 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) The five regional segments are Korea, China, America, Europe and
finally Asia.
Samsung does have a dominant regional segment, which is Korea. The footnote shows that
Korea brought the most revenue to Samsung.

Homework Assignment 5 3
This information is important because it shows investors and the company itself where its main
market is and which segment Samsung has to focus on, to receive more revenue. (As posted in
discussion board this week)

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)

Homework Assignment 5 4
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.
101
106
126
128
131
163
164
167
168
201
236
301
302
403
612
613
623
637
640
652
655
676
677
684

Account Title
Cash
Accounts receivable
Computer supplies
Prepaid insurance
Prepaid rent
Office equipment
Accumulated depreciation—Office equipment
Computer equipment
Accumulated depreciation—Computer equipment
Accounts payable
Unearned computer services revenue
S. Rey, Capital
S. Rey, Withdrawals
Computer services revenue
Depreciation expense—Office equipment
Depreciation expense—Computer equipment
Wages expense
Insurance expense
Rent expense
Computer supplies expense
Advertising expense
Mileage expense
Miscellaneous expenses
Repairs expense—Computer
Totals

Debit
$38,264
12,618
2,545
2,220
3,300
8,000

Credit

$0
20,000
0
0
0
73,000
5,600
25,659
0
0
2,625
0
0
0
1,728
704
250
805
$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

3

advertising costs.
Paid $500 cash for minor repairs to the company’s computer.

Homework Assignment 5 5
4

Received $3,950 cash from Alex’s Engineering Co. for the receivable from

10
14

November.
Paid cash to Lyn Addie for six days of work at the rate of $125 per day.
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

15
16

Business Solutions.
Purchased $1,100 of computer supplies on credit from Harris Office Products.
Sent a reminder to Gomez Co. to pay the fee for services recorded on November

20
22

8.
Completed a project for Liu Corporation and received $5,625 cash.
Took the week off for the holidays.

26
28
29

Received $3,000 cash from Gomez Co. on its receivable.
Reimbursed S. Rey for business automobile mileage (600 miles at $0.32 per

31

mile).
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:

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

Homework Assignment 5 6
f. Three of the four months’ prepaid rent has expired.

Please complete the following:

1. Prepare journal entries to record each of the December transactions and events for
Business Solutions. Post those entries to the accounts in the ledger.
2. Prepare adjusting entries to reflect a through f. Post those entries to the accounts in the
ledger.
3. Prepare an adjusted trial balance as of December 31, 2015.
4. Prepare an income statement for the three months ended December 31, 2015.
5. Prepare a statement of owner’s equity for the three months ended December 31, 2015.
6. Prepare a balance sheet as of December 31, 2015.

Note: You will submit your work at the end of the Module 6 Homework Assignment.