1 a. The December 31 inventory count of computer supplies shows $640 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 $120 per day. d. The computer system, acquired on October 1, is expected to have a four-year life with no salvage value. c. 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. 75 points 03:45:29 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 28. 8. Prepare a post-closing trial balance as of December 31, 2019. eBook Print Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Req 2B Req3 Reg 4 Reg 5 Reg 6 Reg 7 Req8 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. 101: Cash 106: Accounts Receivable Debit Credit Date Debit Credit Balance Balance 39,264 38.264 37,814 42,564 Dec. 01 Dec. 04 1,000 450 4,750 3,900 13.018 8,268 4,368 Dec 28 4,750 Date Dec. 01 Dec. 02 Dec. 03 Dec. 04 Dec. 10 Dec. 14 Dec. 20 Dec. 28 Dec. 20 Dec. 31 720 2,200 5,925 3,900 41,844 44,044 49,969 53,860 53,773 52,373 98 1,400 126: Computer Supplies Debit Credit 128: Prepaid Insurance Debit Credit Date Balance 2,545 3.845 Dec. 01 Dec. 15 Dec. 31 Balance 1.920 Date Dec. 01 Dec. 31 1,300 480 1,440 3,205 640 131: Prepaid Rent 163: Office Equipment Serial Problem Business Solutions LO P1, P2, P3, P4, P5, P6 @ 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 Debit Credit 1e1 Cash $ 39,264 106 Accounts receivable 13,818 126 Computer supplies 2,545 128 Prepaid insurance 1,920 131 Prepaid rent 3,220 163 Office equipment 8, 209 164 Accumulated depreciation office equipment $ 167 Computer equipment 22,000 168 Accumulated depreciation-Computer equipment 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue 307 Common stock 65,888 318 Retained earnings 319 Dividends 6,5ee 403 Computer services revenue 37,029 612 Depreciation expense-Office equipment 613 Depreciation expense-Computer equipment Wages expense 2,125 637 Insurance expense 640 Rent expense 652 Computer supplies expense 655 Advertising expense 1,668 676 Mileage expense 614 677 Miscellaneous expenses 170 684 Repairs expense-Computer 785 Totals $102,829 $102,029 @ 623 Business Solutions had the following transactions and events in December 2019. Dec. 2 Paid $1,000 cash to Hillside Mall for Business Solutions' share of mall advertising costs. 3 Paid $450 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 $120 per day. 14 Notified by Alex's Engineering Co. that Business Solutions bid of $7,688 on a proposed project has been accepted. Alex's paid a $2,2ee cash advance to Business Solutions. 15 Purchased $1,500 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 $5,925 cash. 22- Took the week off for the holidays. 26 28 Received $3,900 cash from Gomez Co. on its receivable. 29 Reimbursed s. Rey for business automobile mileage (480 miles at $9.24 per mile). 31 The company paid $1,400 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. .. The December 31 inventory count of computer supplies shows $640 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 $120 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. 126: Computer Supplies Debit Credit 128: Prepaid Insurance Debit Credit Date Date Balance Dec. 01 Dec. 15 Balance 2,545 3,845 840 Dec. 01 Dec. 31 1,920 1,440 1,300 480 Dec. 31 3,205 45:02 131: Prepaid Rent Debit Credit 163: Office Equipment Debit Credit Date Date Dec. 01 Dec. 31 Balance 3,220 805 Balance 8,200 Dec. 01 2,415 167: Computer Equipment Debit Credit Date 164: Accumulated Depreciation Office Equipment Date Debit Credit Balance Dec. 01 0 Dec. 31 410 410 Balance 22.000 Dec. 01 201: Accounts Payable Debit Credit Date Balance 168: Accumulated Depreciation Computer Equipment Date Debit Credit Balance Dec. 01 0 Dec. 31 1.375 1,375 0 Dec. 01 Dec. 15 1,300 1,300 210: Wages Payable Debit Credit Date Balance 236: Unearned Computer Services Revenue Date Debit Credit Balance Dec. 01 0 Dec. 14 2,200 2,200 0 Dec. 01 Dec. 31 480 480 307: Common Stock Debit Credit 318: Retained Earnings Debit Credit Date Balance Balance 65,000 Date Dec. 01 Dec. 01 0 26,948 Dec. 31 Dec. 31 28.948 19,048 7.900 319: Dividends Debit Credit 403: Computer Services Revenue Debit Credit Date Date Dec. 01 Dec. 01 Dec. 31 Dec 31 Balance 6.500 7,900 0 Balance 37.029 42,954 0 1,400 5.925 Dec. 20 Dec. 31 7.900 42,954 319: Dividends Debit Credit 403: Computer Services Revenue Debit Credit Date Balance 6.500 Dec 01 Dec. 31 Dec. 31 Date Dec. 01 Dec. 20 Dec. 31 Balance 37.029 42.954 0 1,400 5,925 7,900 0 7.900 42,954 612: Depreciation Expense-Office Equipment Date Debit Credit Balance 613: Depreciation Expense-Computer Equipment Date Debit Credit Balance Dec. 01 0 0 Dec. 01 Dec. 31 Dec. 31 410 410 Dec. 31 1,375 1,375 410 0 Dec. 31 1.375 0 623: Wages Expense Debit Credit 637: Insurance Expense Debit Credit Date Balance Dec. 01 Dec. 10 Dec 31 Balance 2,125 2,845 3,325 0 Date Dec. 01 Dec. 31 Dec. 31 0 480 720 480 480 480 0 Dec. 31 3,325 640: Rent Expense Debit Credit 652: Computer Supplies Expense Debit Credit Balance Balance 0 0 Date Dec. 01 Dec. 31 Dec. 31 Date Dec. 01 Dec. 31 Dec. 31 2,415 3,205 3,205 2,415 0 2,4151 3,205 0 655: Advertising Expense Debit Credit 676: Mileage Expense Debit Credit Date Balance 614 Dec. 01 Dec. 02 Dec. 31 Balance 1.668 2,668 0 Date Dec. 01 Dec. 29 Dec. 31 1,000 96 710 2,668 710 0 677: Miscellaneous Expense Debit Credit 684: Repairs Expense-Computer Debit Credit Date Balance 170 Dec. 01 Dec. 31 Date Dec. 01 Dec. 03 Dec. 31 Balance 785 1.235 0 170 0 450 1,235 Date 901: Income Summary Debit Credit 37,029 Dec. 31 Dec. 31 Dec. 31 Balance 37,029 28,048 0 10,081 28.948