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1 question with different parts within After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30,
1 question with different parts within
After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30, 2021, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2021) follows. Business Solutions had the following transactions and events in December 2021. December 2 Paid $1,005 cash to Hillside Mall for Business Solutions's share of mall advertising costs. Decenber 3 Paid $460 cash for minor reoairs to the connany's conouter. Business Solutions had the following transactions and events in December 2021. Decenber 2 Paid $1,005 cash to Hitlside Mall for Business Solutions's share of matt advertising costs. December 3 Paid 5460 cash for minor repairs to the conpany's computer. Decenber 4 Received $4,350 cash fron Alex's Engineering Company for the receivable fron Novenber. December 10 Paid cash to Lyn Addie for six days of work at the rate of $120 per day. December 14 Notified by Alex's. Engineering Company that Business Solutions's bid of $7,400 on a proposed project has been accepted. Alex's paid a $1,700 cash advance to Business Solutions. December 15 Purchased $1,5e0 of computer supplies on credit from Harris office Products. December 16 Sent a reninder to Gomez Company to pay the fee for services recorded on Novenber 8. December 28 Completed a project for Liu Corporation and received $5,925 cash. Decenber 2226 Took the week off for the holidays. December 28 Received $3,500 cash from Gomez Conpany on 1t s receivable. December 29 Reinbursed S. Rey for business automobile mileage ( 500 miles at $0.30 per mile). December 31 Paid $1,300 cash for 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 $630 still avallable. 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 month' prepaid rent have expired. Required: 1. Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger, 2-a. Prepare adjusting entries to reflect a through f. 2-b. Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger. 3. Prepare on adjusted trial balance as of December 31,2021. 4. Prepare an income statement for the three months ended December 31, 2021. 5. Prepare a statement of retained earnings for the three months ended December 31, 2021. 6. Prepare a classified balance sheet as of December 31, 2021. 7. Record the necessary closing entries as of December 31,2021. 8. Prepare a post-closing trial balance as of December 31, 2021. Complete this question by entering your answers in the tabs below. Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger Step by Step Solution
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