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. Number 101 106 126 128 131 163 164 167 168 Accumulated depreciation-Computer equipment 201 Accounts payable A 210 Wages payable 236 Unearned computer services revenue 307 Common stock 318 319 403 612 Depreciation expense-Office equipment 613 Depreciation expense-Computer equipment 623 637 640 652 655 676 677 684 901 Cash Accounts receivable Computer supplies Prepaid insurance Prepaid rent office equipment Account Title Accumulated depreciation-Office equipment Computer equipment Retained earnings Dividends Computer services revenue Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer Income summary Totals Debit $ 39,164 13,218 2,545 1,920 3,000 8,000 23,600 6,300 0 0 2,175 0 0 0 1,698 604 220 785 $ 103,229 Credit $0 080 0 71,000 0 32,229 0 $ 103,229 Business Solutions had the following transactions and events in December 2021. December 2 Paid $965 cash to Hillside Mall for Business Solutions's share of mall advertising costs. December 3 Paid $470 cash for minor repairs to the company's computer. December 4 Received $4,650 cash from Alex's Engineering Company for the receivable from November. December 10 Paid cash to Lyn Addie for six days of work at the rate of $125 per day. December 14 Notified by Alex's Engineering Company that Business Solutions's bid of $7,600 on a proposed project has been accepted. Alex's paid $1,700 cash advance to Business Solutions. December 15 Purchased $1,700 of computer supplies on credit from Harris Office Products. December 16 Sent a reminder to Gomez Company to pay the fee for services recorded on November 8.

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. Decenber 3 Fald $ W70 cash for minor repalrs to the compary's computer. Decenber 4 fecelved $4,650 calh from Alex's Englneering company for the recelvable fron Novesber. Decenber to Pald cash to Lyn Mddie for six days of work at the rate of $129 per day. Decenber 14 wotified by Alex's Engineeringt Company that business Solutions's bld of $7,000 on a proposed project has been. accepted. Alex's pald a $1,700 cash advance to Business Solutions. Decenber 15 Purchased $1,200 of compoter supplies on credit from larris offlice Predocts: December 16 sent a reninder to Gonez Coepany to pay the fee for services recorded on Novenber a. The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company's first three months: 0. The December 31 inventory count of computer supplies shows $610 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 $125 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. Required: 1. Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger. 2-0. Prepare adjusting entries to reflect a through f 2-b. Post the journal entries to record each of the DecembeI transactions, adjusting entries to the accounts in the ledger. 3. Prepare an adjusted trial balance as of December 31,2021. 4. Prepare an income statement for the three months ended December 31.2021 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. Decenber 3 Fald $ W70 cash for minor repalrs to the compary's computer. Decenber 4 fecelved $4,650 calh from Alex's Englneering company for the recelvable fron Novesber. Decenber to Pald cash to Lyn Mddie for six days of work at the rate of $129 per day. Decenber 14 wotified by Alex's Engineeringt Company that business Solutions's bld of $7,000 on a proposed project has been. accepted. Alex's pald a $1,700 cash advance to Business Solutions. Decenber 15 Purchased $1,200 of compoter supplies on credit from larris offlice Predocts: December 16 sent a reninder to Gonez Coepany to pay the fee for services recorded on Novenber a. The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company's first three months: 0. The December 31 inventory count of computer supplies shows $610 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 $125 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. Required: 1. Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger. 2-0. Prepare adjusting entries to reflect a through f 2-b. Post the journal entries to record each of the DecembeI transactions, adjusting entries to the accounts in the ledger. 3. Prepare an adjusted trial balance as of December 31,2021. 4. Prepare an income statement for the three months ended December 31.2021