After the success of the companys 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	Debit			Credit
101	Cash	$	38,264
106	Accounts receivable		12,618
126	Computer supplies		2,545
128	Prepaid insurance		2,220
131	Prepaid rent		3,300
163	Office equipment		8,000
164	Accumulated depreciationOffice equipment				$	0
167	Computer equipment		20,000
168	Accumulated depreciationComputer equipment					0
201	Accounts payable					0
210	Wages payable					0
236	Unearned computer services revenue					0
307	Common stock					73,000
318	Retained earnings					0
319	Dividends		5,600
403	Computer services revenue					25,659
612	Depreciation expenseOffice equipment		0
613	Depreciation expenseComputer equipment		0
623	Wages expense		2,625
637	Insurance expense		0
640	Rent expense		0
652	Computer supplies expense		0
655	Advertising expense		1,728
676	Mileage expense		704
677	Miscellaneous expenses		250
684	Repairs expenseComputer		805
	Totals	$	98,659		$	98,659

Business Solutions had the following transactions and events in December 2019.

Dec.	2		Paid $1,025 cash to Hillside Mall for Business Solutions share of mall advertising costs.
	3		Paid $500 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 $125 per day.
	14		Notified by Alexs Engineering Co. that Business Solutions bid of $7,000 on a proposed project has been accepted. Alexs paid a $1,500 cash advance to Business Solutions.
	15		Purchased $1,100 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 $5,625 cash.
2226			Took the week off for the holidays.
	28		Received $3,000 cash from Gomez Co. on its receivable.
	29		Reimbursed S. Rey for business automobile mileage (600 miles at $0.32 per mile).
	31		The company paid $1,500 cash in dividends.

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 $580 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 $125 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 have 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 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 2B. 8. Prepare a post-closing trial balance as of December 31, 2019.

Reg 1 Reg 2A Reg 2B Reg 3 Reg 4 Reg 5 Reg 6 Req 7 Reg 8 Prepare journal entries to record each of the December transactions and events for Business Solutions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) p View transaction list View Journal entry worksheet No Date General Journal Debit Credit 1 Dec 02 1,025 Advertising expense Cash 1.025 2 Dec 03 500 Repairs expense-Computer Cash 500 3 Dec 04 Cash 3,950 Accounts receivable 3,950 4 Dec 10 750 Wages expense Cash 750 5 Dec 14 1,500 Cash Unearned computer services revenue 1,500 6 Dec 15 1,100 Computer supplies Accounts payable 1,100 Dec 16 No journal entry required 8 Dec 20 5,625 Cash Computer services revenue 5,625 9 Dec 28 Cash 3,000 Accounts receivable 3,000 10 Dec 29 192 Mileage expense Cash 192 11 Dec 31 1,500 Dividends Accounts receivable 1,500 Reg 1 Reg 2A Reg 2B Reg Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 Prepare adjusting entries to reflect a through f. View transaction list View journal entry worksheet X No Transaction Debit Credit 1 a. General Journal Computer supplies expense Computer supplies 3.065 3,065 2 b. 555 Insurance expense Prepaid insurance 555 3 C. 500 Wages expense Wages payable 500 4 d. 1.250 Depreciation expense-Computer equipment Accumulated depreciation-Computer equipment 1.250 5 e. 400 Depreciation expense-Office equipment Accumulated depreciation-Office equipment 400 6 f. 2,475 Rent expense Prepaid rent 2,475 Req 1 Req 2A Req 2B Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 Post the journal entries to record each of the December transactions from Requirement 1 and adju Requirement 2A. After completing Requirement 7, post the closing entries to the general ledger a 101: Cash 106: Accounts Receivable Date Debit Credit Balance Date Debit Credit Balance Dec. 01 38,264 Dec. 01 12,618 126: Computer Supplies Debit Credit 128: Prepaid Insurance Debit Credit Date Dec. 01 Balance 2,545 Date Dec. 01 Balance 2,220 131: Prepaid Rent Debit Credit 163: Office Equipment Debit Credit Date Dec. 01 Balance 3,300 Date Dec. 01 Balance 8.000 164: Accumulated Depreciation-Office Equipment Date Debit Credit Balance Dec. 01 0 167: Computer Equipment Debit Credit Date Dec. 01 Balance 20,000 168: Accumulated Depreciation-Computer Equipment Date Debit Credit Balance Dec. 01 0 201: Accounts Payable Debit Credit Date Dec. 01 Balance 0 210: Wages Payable Debit Credit Date Dec. 01 Balance 0 236: Unearned Computer Services Revenue Date Debit Credit Balance Dec. 01 0 307: Common Stock Dahit 318: Retained Earnings Dahit nato Palanan nato Palnnan Reg 1 Reg 2A Reg 2B Reg 3 Req 4 Reg 5 Reg 6 Prepare an adjusted trial balance as of December 31, 2019. BUSINESS SOLUTIONS Adjusted Trial Balance December 31, 2019 Account Title Credit Cash $ Debit 48,372 5,666 580 1,665 625 8,000 $ 400 20.000 1.250 1,100 500 1,500 73,000 0 Accounts receivable Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciation Office equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable Wages payable Uneamed 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 Totals 7.100 31,284 400 1.250 3,675 555 2,475 3,065 2,753 896 250 1,305 109.034 $ 109.034 Reg 1 Reg 2A Reg 2B Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Prepare an income statement for the three months ended December 31, 2019. BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2019 Revenue Computer services revenue $ 312,164 $ Expenses Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expenso Mileage expense Miscellaneous expenses Repairs expense-Computer 400 1.250 3.875 555 2.475 3,065 2,753 896 250 1,3051 Total expenses Net income 16,624 14.460 $ Reg 1 Reg 2A Reg 2B Reg 3 Reg 4 Reg 5 Reg 6 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 Prepaid rent Office equipment $ Accumulated depreciation Office equipment Computer equipment Accumulated depreciation Computer equipment Total Assets Liabilities Accounts payable Wages payable Uneamed computer services revenue 48,372 5,668 580 1,665 625 7.600 8.000 400 20.000 1,250 18.750 83,460 $ 1,100 500 1,500 3.100 Total Liabilities Equity Total equity Total Liabilities and Equity 0 3,100 $ Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 2B Reg 3 Req 4 Reg 5 Reg 6 Reg 7 RE Prepare a statement of retained earnings for the three months ended December 31, 2019. BUSINESS SOLUTIONS Statement of Retained Earnings For Three Months Ended December 31, 2019 Retained earings, October 1, 2019 0 Retained earnings, December 31, 2019 $ 0 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Req 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 ledge View transaction list X 1 Close the revenue account(s). 2 Close the expense accounts. 3 Close the Income summary account. 4 Close the Dividends account. Credit Note : = journal entry has been entered Record entry Clear entry View general journal Poa Reg 1 Reg 2A Reg 2B Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Prepare a post-closing trial balance as of December 31, 2019. Credit BUSINESS SOLUTIONS Post-Closing Trial Balance December 31, 2019 Debit 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 Uneamed computer services revenue Common stock Retained earnings Totals $ 0 $ 0