0 After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30, 2019, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2019) follows. No. Account Title 101 Cash Debit Credit 106 Accounts receivable $ 39,164 126 Computer supplies 12,818 128 Prepaid insurance 2,645 131 Prepaid rent 2,220 163 Office equipment 2,920 164 Accumulated depreciation-office equipment 9,000 167 Computer equipment 168 Accumulated depreciation-Computer equipment 21,200 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue 307 Common stock 318 Retained earnings 64,000 319 @ Dividends 403 6,600 Computer services revenue 612 38,449 Depreciation expense-Office equipment Depreciation expense-Computer equipment 623 Wages expense 2,575 637 Insurance expense 640 Rent expense 652 Computer supplies expense e 655 Advertising expense 1,668 676 Mileage expense 654 672 Miscellaneous expenses 684 Repairs expense-Computer 755 Totals $102,449 $102,449 e 613 230 Business Solutions had the following transactions and events in December 2019. Dec. 2 Paid $935 cash to Hillside Mall for Business Solutions' share of mall advertising costs. 3 Paid $430 cash for minor repairs to the company's computer. 4 Received $4,750 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 $105 per day. 14 Notified by Alex's Engineering Co. that Business Solutions' bid of $7,200 on a proposed project has been accepted. Alex's paid a $1,600 cash advance to Business Solutions. 15 Purchased $2,100 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 $5,675 cash. 22- Took the week off for the holidays. 26 28 Received $3,200 cash from Gomez Co. on its receivable. 29 Reimbursed S. Rey for business automobile mileage (400 miles at $8.32 per mile). 31 The company paid $1,000 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 $650 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 $105 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. Required: 1. Prepare journal entries to record each of the December transactions and events for Business Solutions. 2-a. Prepare adjusting entries to reflect a through f. 2-b. Post the journal entries to record each of the December transactions from Requirement 1 and adjusting entries from Requirement 2A. After completing Requirement 7 post the closing entries to the general ledger accounts. 3. Prepare an adjusted trial balance as of December 31, 2019. 4. Prepare an income statement for the three months ended December 31, 2019. 5. Prepare a statement of retained earnings for the three months ended December 31, 2019. 6. Prepare a balance sheet as of December 31, 2019. 7. Record the necessary closing entries as of December 31, 2019 and then post the closing entries to the general ledger in Requirement 2B. 8. Prepare a post-closing trial balance as of December 31, 2019. 101: Cash 106: Accounts Receivable Date Debit Credit Balance Date Debit Dec 01 Credit Balance 39,164 Dec. 01 12,818 126: Computer Supplies Debit Credit Date Dec 01 Date 128: Prepaid Insurance Debit Credit Balance 2,645 Dec. 01 Balance 2,220 Date Dec 01 131: Prepaid Rent Debit Credit 163: Office Equipment Debit Credit Balance 2.920 Date Dec, 01 Balance 9.000 164: Accumulated Depreciation Office Equipment 167: Computer Equipment 164: Accumulated Depreciation-Office Equipment Date Debit Credit Balance Dec. 01 167: Computer Equipment Debit Credit Date Dec. 01 0 Balance 21,200 168: Accumulated Depreciation-Computer Equipment Date Debit Credit Balance Dec. 01 201: Accounts Payable Debit Credit Date Balance 0 Dec 01 0 210: Wages Payable Debit Credit Date Dec 01 Balance 236: Unearned Computer Services Revenue Date Debit Credit Balance Dec. 01 0 0 307: Common Stock Debit Credit Date Dec. 01 Balance 318: Retained Earnings Debit Credit Date Dec 01 Balance 64,000 319: Dividends Debit Credit Date 403: Computer Services Revenue Debit Credit Balance Dato Balance 319: Dividends Debit Credit 403: Computer Services Revenue Debit Credit Date Date Dec 01 Balance 6,600 Balance 38,449 Dec, 01 612: Depreciation Expense-Office Equipment Date Debit Credit Balance Dec 01 613: Depreciation Expense-Computer Equipment Date Debit Credit Balance Dec. 01 0 0 623: Wages Expense Debit Credit Date Dec 01 637: Insurance Expense Debit Credit Balance Balance 2,575 Date Dec, 01 0 640: Rent Expense Debit Credit 652: Computer Supplies Expense Debit Credit Date Dec 01 Balance Date Balance 0 Dec 01 0 655: Advertising Expense Debit Credit 676: Mileage Expense Debit Credit Date Dec. 01 Balance 1,668 Date Dec. 01 Balance 654 677: Miscellaneous Expense Debit Credit 684: Repairs Expense Computer Debit Credit Date Dec. 01 Balance 230 Date Dec 01 Balance 755 901: Income Summary Debit Credit Date Balance ACCOUn lite Uepit credit Cash Accounts receivable K t nces Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciation Office equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable Wages payable Unearned computer services revenue Common stock Retained earnings Dividends 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 BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2019 Revenue Expenses es Total expenses 0 BUSINESS SOLUTIONS Statement of Retained Earnings For Three Months Ended December 31, 2019 Retained earnings, October 1, 2019 0 $ 0 Retained earnings, December 31, 2019 BUSINESS SOLUTIONS Balance Sheet December 31, 2019 Assets 0 0 Total Assets Liabilities 0 Total Liabilities Equity 0 Total equity Total Liabilities and Equity $ $ Close the revenue account(s). Note: Enter debits before credits. General Journal Debit Credit Date Dec. 31 Record entry Clear entry View general Journal Close the expense accounts. Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31 Close the Income summary account. Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31 Record entry Clear entry View general Journal Close the Dividends account. Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31 BUSINESS SOLUTIONS Post-Closing Trial Balance December 31, 2019 Debit Credit Cash Accounts receivable Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciation--Office equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable Wages payable Unearned computer services revenue Common stock Retained earnings Totals $ 0 $