Determine whether the events are mutually exclusive or not mutually exclusive. Then find the probability. Round to the nearest tenth of a percent if necessary.

Drawing a card from a standard deck and choosing a king or an ace

Record the entry to close the income summary account having a credit balance of $408,000.

Sticky Company's merchandise inventory balance at year-end is $15,050, but a physical count reveals that only $15,000 of inventory exists. What adjusting entry is needed to record the shrinkage?

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 Chapter 2 serial problem.) The November 30, 2017, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2017) follows.

Note: Please refer the image from textbook.

Business Solutions had the following transactions and events in December 2017.

Dec. 2 Paid $1,025 cash to Hillside Mall for Business Solutions's share of mall advertising costs.

3 Paid$\$500$ cash for minor repairs to the company's computer.

4 Received $\$ 3,950$ cash from Alex's Engineering Co. for the receivable from November.

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

14 Notified by Alex's Engineering Co. that Business Solutions's bid of $\$ 7,000$ on a proposed project has been accepted. Alex's paid a $\$ 1,500$ cash advance to Business Solutions.

15 Purchased $\$ 1,100$ of computer supplies on credit from Harris Office Products.

16 Sent a reminder to Gomez Co. to pay the fee for services recorded on November 8.

20 Completed a project for Liu Corporation and received $\$ 5,625 \mathrm{cash}$.

22-26 Took the week off for the holidays.

28 Received $3,000 cash from Gomez$ $\mathrm{Co}. on its receivable.

29 Reimbursed S. Rey for business automobile mileage ( 600 miles at$\$0.32$ per mile).

31 The company paid $\$ 1,500$ cash in dividends.

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.

f. Three of the four months' prepaid rent have expired.

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 $31,2017$.

4. Prepare an income statement for the three months ended December 31, 2017.

5. Prepare a statement of retained earnings for the three months ended December $31,2017$.

6. Prepare a balance sheet as of December 31,2017 .

7. Record and post the necessary closing entries as of December $31,2017$.

8. Prepare a post-closing trial balance as of December $31,2017$.

Tides are caused by

A. the Coriolis effect.

B. primarily the sun's gravity, with some effect from the moon.

C. the sun's gravity only.

D. primarily the moon's gravity, with some effect from the sun.

Required information

(The following information applies to the questions displayed below.]

On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $85,160 in assets in exchange for its common stock to launch the business. On December 31, the company's records show the following items and amounts.

• Cash =$7,520
• Accounts receivable = $17,950
• Office supplies =$4,310
• Office equipment = $19,190
• Land =$46,000
• Accounts payable = 9,600
• Common stock = $85,160
• Cash dividends =$3,190
• Consulting revenue = $17,950
• Rent expense =$4,720
• Salaries expense = $8,220
• Telephone expense =$900
• Miscellaneous expenses = $710

Using the above information prepare a December statement of retained earnings for Ernst Consulting. Hint: Retained Earnings on December 1 was$0.

Use the information in the adjusted trial balance reported in the previous exercise to prepare Sierra Company’s classified balance sheet as of December 31.

Use the information in the adjusted trial balance reported in the previous exercise to prepare Wilson Trucking Company’s classified balance sheet as of December 31.

On December 31, Hawkin's records show the following accounts. Use this information to prepare a statement of retained earnings for Hawkin for the month ended December 31. Hint: Net income is $5,800.

Cash$ 5,100
Accounts receivable                        600
Supplies                                 2,000
Equipment                               14,000
Accounts payable                         6,000
Common stock                             6,900
Retained earnings, December 1            4,000
Dividends                                1,000
Services revenue                        16,000
Wages expense                            8,000
Rent expense                             1,500
Utilities expense                          700

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 Chapter 2 serial problem.) The November 30, 2017, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2017) follows.

Note: Please refer the image from textbook.

Business Solutions had the following transactions and events in December 2017.

Dec. 2 Paid $1,025 cash to Hillside Mall for Business Solutions's share of mall advertising costs.

3 Paid$\$500$ cash for minor repairs to the company's computer.

4 Received $\$ 3,950$ cash from Alex's Engineering Co. for the receivable from November.

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

14 Notified by Alex's Engineering Co. that Business Solutions's bid of $\$ 7,000$ on a proposed project has been accepted. Alex's paid a $\$ 1,500$ cash advance to Business Solutions.

15 Purchased $\$ 1,100$ of computer supplies on credit from Harris Office Products.

16 Sent a reminder to Gomez Co. to pay the fee for services recorded on November 8.

20 Completed a project for Liu Corporation and received $\$ 5,625 \mathrm{cash}$.

22-26 Took the week off for the holidays.

28 Received $3,000 cash from Gomez$ $\mathrm{Co}. on its receivable.

29 Reimbursed S. Rey for business automobile mileage ( 600 miles at$\$0.32$ per mile).

31 The company paid $\$ 1,500$ cash in dividends.

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.

f. Three of the four months' prepaid rent have expired.

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 $31,2017$.

4. Prepare an income statement for the three months ended December 31, 2017.

5. Prepare a statement of retained earnings for the three months ended December $31,2017$.

6. Prepare a balance sheet as of December 31,2017 .

7. Record and post the necessary closing entries as of December $31,2017$.

8. Prepare a post-closing trial balance as of December $31,2017$.

Tides are caused by

A. the Coriolis effect.

B. primarily the sun's gravity, with some effect from the moon.

C. the sun's gravity only.

D. primarily the moon's gravity, with some effect from the sun.

Required information

(The following information applies to the questions displayed below.]

On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $85,160 in assets in exchange for its common stock to launch the business. On December 31, the company's records show the following items and amounts.

• Cash =$7,520
• Accounts receivable = $17,950
• Office supplies =$4,310
• Office equipment = $19,190
• Land =$46,000
• Accounts payable = 9,600
• Common stock = $85,160
• Cash dividends =$3,190
• Consulting revenue = $17,950
• Rent expense =$4,720
• Salaries expense = $8,220
• Telephone expense =$900
• Miscellaneous expenses = $710

Using the above information prepare a December statement of retained earnings for Ernst Consulting. Hint: Retained Earnings on December 1 was$0.

Use the information in the adjusted trial balance reported in the previous exercise to prepare Sierra Company’s classified balance sheet as of December 31.

Use the information in the adjusted trial balance reported in the previous exercise to prepare Wilson Trucking Company’s classified balance sheet as of December 31.