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101 Cash $ 38,964 106 Accounts receivable 13,618 126 Computer supplies 2,545 128 Prepaid insurance 2,040 131 Prepaid rent 2,960 163 Office equipment 8,400 164

101 Cash $ 38,964
106 Accounts receivable 13,618
126 Computer supplies 2,545
128 Prepaid insurance 2,040
131 Prepaid rent 2,960
163 Office equipment 8,400
164 Accumulated depreciationOffice equipment $ 0
167 Computer equipment 22,000
168 Accumulated depreciationComputer equipment 0
201 Accounts payable 0
210 Wages payable 0
236 Unearned computer services revenue 0
301 S. Rey, Capital 63,000
302 S. Rey, Withdrawals 6,600
403 Computer services revenue 39,844
612 Depreciation expenseOffice equipment 0
613 Depreciation expenseComputer equipment 0
623 Wages expense 2,450
637 Insurance expense 0
640 Rent expense 0
652 Computer supplies expense 0
655 Advertising expense 1,638
676 Mileage expense 644
677 Miscellaneous expenses 200
684 Repairs expenseComputer 785
Totals $ 102,844 $ 102,844

Business Solutions had the following transactions and events in December 2017.

Dec. 2 Paid $970 cash to Hillside Mall for Business Solutions share of mall advertising costs.
3 Paid $430 cash for minor repairs to the companys computer.
4 Received $3,950 cash from Alexs 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 Alexs Engineering Co. that Business Solutions bid of $7,200 on a proposed project has been accepted. Alexs paid a $1,800 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.
2226 Took the week off for the holidays.
28 Received $3,300 cash from Gomez Co. on its receivable.
29 Reimbursed S. Rey for business automobile mileage (500 miles at $0.31 per mile).
31 S. Rey withdrew $1,400 cash from the company for personal use.

The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the companys first three months:

  1. The December 31 inventory count of computer supplies shows $660 still available.
  2. Three months have expired since the 12-month insurance premium was paid in advance.
  3. As of December 31, Lyn Addie has not been paid for four days of work at $120 per day.
  4. The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.
  5. The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.
  6. Three of the four months' prepaid rent has 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, adjusting entries to the accounts in the ledger. 3. Prepare an adjusted trial balance as of December 31, 2017. 4. Prepare an income statement for the three months ended December 31, 2017. 5. Prepare a statement of owners equity for the three months ended December 31, 2017. 6. Prepare a balance sheet as of December 31, 2017.

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