1 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. eBook Print Credit References Debit $ 38,264 13,518 2,545 1,920 3,260 8,500 22,800 No. 101 106 126 128 131 163 164 167 168 201 210 236 307 318 319 403 612 Account Title 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 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 0 0 0 65,000 0 6,400 37,819 623 637 640 652 655 676 677 684 0 0 2,275 0 0 0 1,708 664 220 745 eBook Print Business Solutions had the following transactions and events in December 2019. Dee. 2 Paid $1,025 cash to Hilaide Hall for Business Solutions where of all advergining costs. 3 Paid $460 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 $120 per day. 14 Notified by Alex'Ingineering Co. that Business Solutions bid of $7,200 on a proposed project has been accepted. Alex's paid a $1,700 cash advance to Business Solutions. 15 Purchased $1,900 of computer supplies on credit from Harris office Products 16 Sent a reminder to Gomes Co. to pay the fee for services recorded on November 8. 20 Completed a project for Lia Corporation and received $6,175 cash. 22- Took the week off for the holidays. 26 28 Received $3,100 cash froe Gomez Co. on its receivable. 29 Reimbursed s. Rey for business automobile mileage (500 miles at $0.23 per mile) 31 The company paid $1,100 cash in dividends. References 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 $620 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. ces 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 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 earings 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