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 101 Cash Debit Credit 106 Accounts receivable $ 38,364 126 Computer supplies 13, 218 128 Prepaid insurance 2,545 2,040 131 Prepaid rent 163 Office equipment 3,180 164 Accumulated depreciation office equipment 8,200 167 Computer equipment 168 Accumulated depreciation-Computer equipment 20,800 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue 307 Common stock 318 Retained earnings 72,000 319 Dividends 403 Computer services revenue 5,700 612 Depreciation expense-Office equipment 27,544 613 Depreciation expense-Computer equipment 623 Wages expense 637 Insurance expense 2,200 640 Rent expense 652 Computer supplies expense 655 Advertising expense 676 1,718 Mileage expense 674 672 Miscellaneous expenses 170 Repairs expense-Computer 235 Totals $99,544 $99,544 0 0 0 684 Business Solutions had the following transactions and events in December 2019, Dec. 2 paid $1,010 cash to Hillside Mall for Business Solutions' share of mall advertising costs. 3 Paid $460 cash for minor repairs to the company's computer. 4 Received $4,450 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 $7,360 on a proposed project has been accepted. Alex's paid a $1,500 cash advance to Business Solutions. 15 Purchased $2,000 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 $3,100 cash fron Gomez Co. on its receivable. 29 Reimbursed S. Rey for business automobile mileage (500 miles at $9.29 per mile). 31 The company paid $1,300 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. a. The December 31 inventory count of computer supplies shows $580 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' prepaid rent have expired. Dz. 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 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. Complete this question by entering your answers in the tabs below. Reg Reg 2 Reg 28 Reg3 Req* Reqs Reg 6 Req 7 Reg Prepare adjusting entries to reflect through View transaction ist View Journalen Prepare adjusting entries to reflect a through f. No Transaction General Journal 1 Debit Credit a. Computer supplies expenso Computer supplies 3,965 3,965 2 b. Insurance expense Prepaid insurance 510 510 3 C Wages expense Wages payable 440 440 4 d. Depreciation expense-Office equipment Accumulated depreciation Office equipment . 410 3 410 % 5 Depreciation expense - Computer equipment Accumulated depreciation Computer equipment 1.300 1,3003 6 Rent expense Prepaid rent 2,385 2,385 319: Dividends Debit Credit 403: Computer Services Revenue Debit Credit Date Dec 01 Dec 31 Close Dec 31 Close Date Dec 01 X Balance 5,700 7.000 0 Balance 27,54 33.469 1,300 Dec 20 Dec 31 Close 5,925 7,000 33,469 612: Depreciation Expense-Office Equipment Date Debit Credit Balance Dec 01 0 Dec 31 Adi 410 410 Dec 31 Close 410 0 613: Depreciation Expense -Computer Equipment Data Debit Credit Balance Dec 01 0 Dec 31 Adi 1,300 1,300 Dec 31 Close 1,300 0 623: Wages Expense Debit Credit 637: Insurance Expense Debit Credit Balance Date Dec 01 Dec 10 Dec 31 Adi Dec 31 Close Balance 2,200 2.860 3,300 0 660 440 Dato Dec 01 Dec 31 Adi Dec 31 Close 0 510 510 OO 3.300 510 0 655: Advertising Expense Debit Credit Date Balance Dec. 01 Dec. 02 1,010 1,718 2,728 Dec. Dec. 2 Dec. 31 X 2,728 0 Dec. 3 677: Miscellaneous Expense Debit Credit Date Balance Dec. 01 D Dec. 31 Close 170 170 Dec. 01 Dec. 03 0 Dec. 31 Date Dec. 01 Dec. 31 Dec. 31 Close X 901: Income Summary Debit Credit 33,469 16,782 16,687 Balance 33,469 16,687 0 Reg 1 Req 2A Req 28 Reg 3 Req 4 Req 5 Req 6 Req 7 Req8 Prepare an adjusted trial balance as of December 31, 2019. BUSINESS SOLUTIONS Adjusted Trial Balance December 31, 2019 Account Title Debit Credit Cash $ 49,764 Accounts receivable 5,668 Computer supplies 5806 Prepaid insurance 1,530 Prepaid rent 795 Office equipment 8,200 Accumulated depreciation-Office $ 513 equipment Computer equipment 20,800 Accumulated depreciation-Computer equipment 1,040 Accounts payable 2,000 Wages payable 440 Uneamed computer services revenue 1,500 Common stock 172,000 Retained earnings Dividends 7,000 Computer services revenue 33,465 Depreciation expense-Office equipment 513% Depreciation expense-Computer equipment 1,040% Wages expense 3,300 Insurance expense 510 Rent expense 2,385 Computer supplies expense 3,965 Advertising expenso 2,728 Mileage expense 819 Miscellaneous expenses 170 Repairs expense Computer 1.195 Totals $ IS 109.409 112.515 Reg Prepare a balance sheet as of December 31, 2019. BUSINESS SOLUTIONS Balance Sheet December 31, 2019 Assets Cash Accounts receivable Computer supplies Prepaid insurance 49,764 5,668 580 1.530 0 0 57,542 Total Assets Liabilities Accounts payable Wages payable Unearned computer services revenue $ 2,000 440 1,500 3,940 Total Liabilities Equity Common stock Retained earnings 72,000 9,845 X S Total equity Total Liabilities and Equity Di 81,845 85.785 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 Req 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 2B 8. Prepare a post-closing trial balance as of December 31, 2019. Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 Record the necessary closing entries as of December 31, 2019 and then post the closing entries to the general ledger in Requirement 2B No Date General Journal Debit Credit
