After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30, 2018 unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2018) follows Debit $38,664 13,218 2,645 2,160 3,060 8,400 Account Title Credit 101 Cash 106 Accounts receivable 126 Computer supplies 128 Prepaid insurance 131 163 office equipment 164 Accumulated depreciation-Office equipment 167 Computer equipment 168 Accumulated depreciation-Computer equipment 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue 307 Common stock 318 Retained earnings 319 Dividends 403 Computer services revenue 612 Depreciation expense-Office equipment 613 Depreciation expense-Computer equipment 623 Wages expense 637 Insurance expense 640 Rent expense 652 Computer supplies expense 655 Advertising expense 676 Mileage expense 677 Miscellaneous expenses 684 Repairs expense-Computer Prepaid rent 24,000 72,000 6,400 31,979 2,275 1,658 604 180 715 $103,979 $103,979 Totals Business Solutions had the following transactions and events in December 2018 Dec. 2 Paid $1,020 cash to Hillside Mall for Business Solutions' share of mall advertising costs 3 Paid $480 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 $115 per day 14 Notified by Alex's Engineering Co. that Business Solutions' bid of $8,000 on a proposed project has been accepted. Alex's paid a $2,000 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 $5,775 cash. 22- Took the week off for the holidays. 26 28 Received $3,600 cash from 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. 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 $640 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 $115 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 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, 2018. 4. Prepare an income statement for the three months ended December 31, 2018. 5. Prepare a statement of retained earnings for the three months ended December 31, 2018. 6. Prepare a balance sheet as of December 31, 2018. 7. Record and post the necessary closing entries as of December 31, 2018. 8. Prepare a post-closing trial balance as of December 31, 2018 Cash Accounts Receivable Credit Date Debit Date Debit Credit Balance Balance Dec. 01 ec. 02 ec. 03 ec. 04 ec. 10 ec. 14 ec. 20 ec. 28 ec. 29 ec. 31 38,664Dec. 01 ec. 04 ec. 28 13,218 4,450 43,114 45,114 50,889 54,489 54,374 53,274 2,000 5,775 3,600 115 1,100 Computer Supplies Debit Prepaid Insurance Credit Date Date Debit Credit Balance Balance 2,160 Dec. 01 ec. 15 ec. 31 2,645 Dec. 01 4,145 1,500 ec. 31 Prepaid Rent Office Equipment Debit Date Debit Credit Date Credit Balance Balance 3,060 Dec. 01 8,400 Dec. 01 ec. 31 Accumulated Depreciation-Office Equipment Date Computer Equipment Debit Credit Debit Credit Date Balance Balance 0Dec. 01 Dec. 01 24,000 Accumulated Depreciation-Computer Equipment Date Accounts Payable Debit Debit Credit Date Credit Balance Balance oDec. o1 Dec. 01 ec. 31 ec. 15 Unearned Computer Services Revenue Wages Payable Debit Debit Credit Date Credit Date Balance Balance 0Dec. 01 Dec. 01 ec. 31 ec. 14 Common Stock Retained Earnings Debit Credit Date Debit Date Credit Balance Balance Dec. 01 72,000Dec. 01 ec. 31 ec. 31 Dividends Computer Services Revenue Credit Date Debit Date Debit Credit Balance Balance Dec. 01 ec. 20 ec. 31 6,400Dec. 01 ec. 31 ec. 31 31,979 Depreciation Expense-Office Equipment Depreciation Expense-Computer Equipment Date Credit Date Debit Debit Credit Balance Balance 0 Dec. 01 ec. 10 ec. 31 Dec. 01 ec. 31 ec. 31 Wages Expense Debit Insurance Expense Credit Date Date Debit Credit Balance Balance Computer Supplies Expense Rent Expense Credit Date Debit Date Debit Credit Balance Balance 0Dec. 01 ec. 31 ec. 31 Dec. 01 ec. 31 ec. 31 Advertising Expense Debit Mileage Expense Debit Credit Date Date Credit Balance Balance 604 Dec. 01 ec. 02 ec. 31 1,658 Dec. 01 ec. 29 ec. 31 Miscellaneous Expense Repairs Expense-Computer Credit Date Debit Date Debit Credit Balance Balance 180 Dec. 01 ec. 03 ec. 31 715 Dec. 01 ec. 31 Income Summary Credit Date Debit Balance ec. 01 Prepare an adjusted trial balance as of December 31, 2018 BUSINESS SOLUTIONS Adjusted Trial Balance December 31, 2018 Debit Credit Account Title 51,084 5,168 640 1,620 765 8,400 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 420 24,000 1,500 1,500 460 2,000 72,000 13797 7,500 37,754 13797 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 7,500 37,754 1,500 420 3,425 540 2,295 3,505 2,678 719 180 1,195 $115,634$ 129,431 K Req 2B Req 4 Record and post the necessary closing entries as of December 31, 2018. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet Date General Journal Debit Credit Dec. 31 Computer services revenue 37,754 Income summary Dec. 31 Income summary 8,400 Accumulated depreciation-Office equipment 1,500 Accumulated depreciation-Computer equipment 460 Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer 540 2,295 640 2,678 719 180 1,195 Dec. 31 Income summary 13,797 Retained earnings Prepare adjusting entries to reflect a through f. View transaction list View journal entry worksheet Transaction General Journal Debit Credit Computer supplies expense 3,505 Computer supplies 3,505 540 Insurance expense 540 Prepaid insurance 460 Wages expense C. 460 Wages payable 420 4 iation expense-Computer equipment Accumulated depreciation-Computer equipment Deprec 420 1,500 Depreciation expense-Office equipment Accumulated depreciation-Office equipment 1,500 Rent expense 2,295 Prepaid rent 2,295