1 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 Credit Debit $ 38,564 12,818 2,545 2,100 3,040 -Book $ 101 206 120 128 131 163 164 167 168 201 210 216 307 31 310 403 22.00 erences 0 o Account Title Cash Accounts receivable Computer Supplies Prepaid Insurance Prepaid rent office equipment Accumulated depreciation office equipment Computer scient Accumulated depreciation Conguter equipment Accounts payable Waces payable Vearned computer Services revenue Connon stock Retained varnings Dividends Computer services revenue Depreciation expense-Office equipment Depreciation Dense Computer equipment Wates expense Insurance expense Ilent expense Computer supplies expense Advertising expense Mlleate expense Miscellaneous expenses Repairs expense-Computer Totals 50.000 6,500 14.04 0 51 623 632 640 652 655 676 2,625 0 0 67 1,705 664 170 715 $183,MO 686 3103.049 Business Solutions had the following transactions and events in December 2019, Dec. 2 Paid $945 cash to Hillside Mall for Business Solutions share of wall advertising costs. 3 Paid $500 cash for minor repairs to the company's computer. 4 Received $4,550 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 $110 per day 14 Notified by Alex's Engineering Co. that Business Solutions bid of $2.200 on a proposed project has been accepted. Alex paid a $2,200 cash advance to Business Solutions 15 Purchased $1,300 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 $6,125 cash 22. Took the week off for the holidays 26 28 Received $3,000 cash from Gomez Co. on its receivable. 29 Reimbursed S. Rey for business automobile mileage (600 miles at 30:27 per mile) 31 The company paid $1,200 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 o. 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 $110 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 prepoid rent have expired. 1 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 is expected to have a five-year life with no salvage value f. Three of the four months prepaid rent have expired Book Required: 1. Prepare journal entries to record each of the December transactions and events for Business Solutions. 2-0. Prepare adjusting entries to reflect a through 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. Herce View transaction list View journal entry worksheet No Transaction Debit Credit 1 a General Journal Computer supplies expense Computer supplies 2 b Insurance expense Prepaid insurance ces 3 G Wages expenso Wages payable 4 d Depreciation expense Computer equipmen Accumulated depreciation Computer equipment 5 e Depreciation expense-Office equipment Accumulated depreciation Office equipment 6 Rent expense Prepaid rent Y prepararen Debit Credit 109. Umce equipment Debit Credit Balance 3,040 Date Dec 01 Balance 8,800 Date Dec 01 167: Computer Equipment Debit Credit Date 164: Accumulated Depreciation Office Equipment Date Debit Credit Balance Dec 01 Balance 22,800 0 Dec 01 165: Accumulated Depreciation Computer Equipment Date Debit Credit Balance Dec 09 201: Accounts Payable Debit Credit Balance Date Doc 01 0 0 210: Wages Payable Debit Credit Balance Date 0001 236: Unearned Computer Services Revenue Date Debit Credit Balance Doc 01 0 0 307. Common Stock Debit Credit Date 318: Retained Earnings Debit Credit Balance Date Balance Prey 1 of 1 12 Nav Prepare an adjusted trial balance as of December 31, 2019. BUSINESS SOLUTIONS Adjusted Trial Balance December 31, 2019 Account Title Debit Credit Cash ces Accounts receivable Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable Wages payable Uneared computer services revenue Common stock Retained earnings Dividends Computer services revenue Prepare an income statement for the three months ended December 31, 2019. BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2019 Revenue Expenses Total expenses 0 Prepare a statement of retained earnings for the three months ended Decem BUSINESS SOLUTIONS Statement of Retained Earnings For Three Months Ended December 31, 2019 Retained earnings October 1, 2019 0 Retained earnings, December 31, 2019 $ BUSINESS SOLUTIONS Balance Sheet December 31, 2019 Assets 0 0 Total Assets Liabilities Total Liabilities 0 Equity Total equity 0 Journal entry worksheet