After the success of the companys 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.

December 2	Paid $935 cash to Hillside Mall for Business Solutions's share of mall advertising costs.
December 3	Paid $450 cash for minor repairs to the companys computer.
December 4	Received $4,350 cash from Alexs Engineering Company for the receivable from November.
December 10	Paid cash to Lyn Addie for six days of work at the rate of $110 per day.
December 14	Notified by Alexs Engineering Company that Business Solutions's bid of $7,900 on a proposed project has been accepted. Alexs paid a $1,900 cash advance to Business Solutions.
December 15	Purchased $1,800 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.
December 20	Completed a project for Liu Corporation and received $6,125 cash.
December 22-26	Took the week off for the holidays.
December 28	Received $4,000 cash from Gomez Company on its receivable.
December 29	Reimbursed S. Rey for business automobile mileage (500 miles at $0.27 per mile).
December 31	Paid $1,000 cash for 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 $630 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 $110 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. Post those entries to the accounts in the ledger. 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, 2021. 4. Prepare an income statement for the three months ended December 31, 2021. 5. Prepare a statement of retained earnings for the three months ended December 31, 2021. 6. Prepare a classified balance sheet as of December 31, 2021. 7. Record the necessary closing entries as of December 31, 2021. 8. Prepare a post-closing trial balance as of December 31, 2021.

2A)

2B)

3)

4)

5)

6)

7)

8)

Prepare adjusting entries to reflect a through f. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet 56 The December 31 inventory count of computer supplies shows $630 still available. Note: Enter debits before credits. repare adjusting entries to reflect a through f. (If no entry is required for a transaction/event, select "No journal entry required" in the irst account field.) Journal entry worksheet 56 Three months have expired since the 12 -month insurance premium was paid in advance. Note: Enter debits before credits. repare adjusting entries to reflect a through f. (If no entry is required for a transaction/event, select "No journal entry required" in the irst account field.) Journal entry worksheet As of December 31, Lyn Addie has not been paid for four days of work at $110 per day. Note: Enter debits before credits. repare adjusting entries to reflect a through f. (If no entry is required for a transaction/event, select "No journal entry required" in the irst account field.) Journal entry worksheet The computer system, acquired on October 1 , is expected to have a four-year life with no salvage value. Note: Enter debits before credits. Prepare adjusting entries to reflect a through f. (If no entry is required for a transaction/event, select "No journal entry required" in the irst account field.) Journal entry worksheet 2 The office equipment, acquired on October 1 , is expected to have a five-year life with no salvage value. Note: Enter debits before credits. Prepare adjusting entries to reflect a through f. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet 2345 Three of the four months' prepaid rent have expired. Note: Enter debits before credits. \begin{tabular}{|c|c|c|c|} \hline \multicolumn{3}{|c|}{ 106: Accounts Receivable } & \\ \hline Date & Debit & Credit & Balance \\ \hline December 01 & & & 12,618 \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline December 01 & & & \\ \hline & & & \\ \hline & Debit & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline \multicolumn{1}{|c|}{ 131: Prepaid Rent } & Credit & Balance \\ \hline December 01 & Debit & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline 164: Accumulated Depreciation-Office Equipment \\ \hline Date & Debit & Credit & Balance \\ \hline December 01 & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline 168: Accumulated Depreciation-Computer Equipment \\ \hline Date & Debit & Credit & Balance \\ \hline December 01 & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline Date & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline \multicolumn{5}{|c|}{ 677: Miscellaneous Expense } \\ \hline Date & Debit & Credit & Balance \\ \hline mber 01 & & & 240 \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline \multicolumn{3}{|c|}{ 684: Repairs Expense-Computer } \\ \hline Date & Debit & Credit & Balance \\ \hline December 01 & & & 795 \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} BUSINESS SOLUTIONS Adjusted Trial Balance December 31, 2021 \begin{tabular}{|l|l|l|} \hline \multicolumn{1}{|c|}{ Account Title } & Debit \\ \hline Cash & Cccounts receivable \\ \hline Computer supplies \\ \hline Prepaid insurance & \\ \hline Prepaid rent & \\ \hline Office equipment & \\ \hline Accumulated depreciation-Office equipment & \\ \hline Computer equipment & \\ \hline Accumulated depreciation-Computer equipment \\ \hline Accounts payable & \\ \hline Wages payable & \\ \hline Unearned computer services revenue \\ \hline Common stock & \\ \hline Retained earnings & \\ \hline Dividends & \\ \hline Computer services revenue \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline Depreciation expense-Office equipment & & \\ \hline Depreciation expense-Computer equipment & & \\ \hline Wages expense & & \\ \hline Insurance expense & & \\ \hline Rent expense & & \\ \hline Computer supplies expense & & \\ \hline Advertising expense & & \\ \hline Mileage expense & & \\ \hline Miscellaneous expenses & & \\ \hline Repairs expense-Computer & & \\ \hline Totals & & \\ \hline \end{tabular} BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2021 Revenue BUSINESS SOLUTIONS Statement of Retained Earnings For Three Months Ended December 31, 2021 \begin{tabular}{|l|l|} \hline Retained earnings, October 1, 2021 & \\ \hline & \\ \hline & \\ \hline & \\ \hline Retained earnings, December 31, 2021 & $ \\ \hline \end{tabular} BUSINESS SOLUTIONS Balance Sheet December 31, 2021 Assets Current assets Journal entry worksheet Record the entry to close the revenue account(s). Note: Enter debits before credits. Record the entry to close the expense account(s). Note: Enter debits before credits. Journal entry worksheet Record the entry to close the Income summary account. Note: Enter debits before credits. Journal entry worksheet 1 Record the entry to close the dividends account. Note: Enter debits before credits. Prepare adjusting entries to reflect a through f. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet 56 The December 31 inventory count of computer supplies shows $630 still available. Note: Enter debits before credits. repare adjusting entries to reflect a through f. (If no entry is required for a transaction/event, select "No journal entry required" in the irst account field.) Journal entry worksheet 56 Three months have expired since the 12 -month insurance premium was paid in advance. Note: Enter debits before credits. repare adjusting entries to reflect a through f. (If no entry is required for a transaction/event, select "No journal entry required" in the irst account field.) Journal entry worksheet As of December 31, Lyn Addie has not been paid for four days of work at $110 per day. Note: Enter debits before credits. repare adjusting entries to reflect a through f. (If no entry is required for a transaction/event, select "No journal entry required" in the irst account field.) Journal entry worksheet The computer system, acquired on October 1 , is expected to have a four-year life with no salvage value. Note: Enter debits before credits. Prepare adjusting entries to reflect a through f. (If no entry is required for a transaction/event, select "No journal entry required" in the irst account field.) Journal entry worksheet 2 The office equipment, acquired on October 1 , is expected to have a five-year life with no salvage value. Note: Enter debits before credits. Prepare adjusting entries to reflect a through f. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet 2345 Three of the four months' prepaid rent have expired. Note: Enter debits before credits. \begin{tabular}{|c|c|c|c|} \hline \multicolumn{3}{|c|}{ 106: Accounts Receivable } & \\ \hline Date & Debit & Credit & Balance \\ \hline December 01 & & & 12,618 \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline December 01 & & & \\ \hline & & & \\ \hline & Debit & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline \multicolumn{1}{|c|}{ 131: Prepaid Rent } & Credit & Balance \\ \hline December 01 & Debit & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline 164: Accumulated Depreciation-Office Equipment \\ \hline Date & Debit & Credit & Balance \\ \hline December 01 & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline 168: Accumulated Depreciation-Computer Equipment \\ \hline Date & Debit & Credit & Balance \\ \hline December 01 & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline Date & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline \multicolumn{5}{|c|}{ 677: Miscellaneous Expense } \\ \hline Date & Debit & Credit & Balance \\ \hline mber 01 & & & 240 \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline \multicolumn{3}{|c|}{ 684: Repairs Expense-Computer } \\ \hline Date & Debit & Credit & Balance \\ \hline December 01 & & & 795 \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} BUSINESS SOLUTIONS Adjusted Trial Balance December 31, 2021 \begin{tabular}{|l|l|l|} \hline \multicolumn{1}{|c|}{ Account Title } & Debit \\ \hline Cash & Cccounts receivable \\ \hline Computer supplies \\ \hline Prepaid insurance & \\ \hline Prepaid rent & \\ \hline Office equipment & \\ \hline Accumulated depreciation-Office equipment & \\ \hline Computer equipment & \\ \hline Accumulated depreciation-Computer equipment \\ \hline Accounts payable & \\ \hline Wages payable & \\ \hline Unearned computer services revenue \\ \hline Common stock & \\ \hline Retained earnings & \\ \hline Dividends & \\ \hline Computer services revenue \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline Depreciation expense-Office equipment & & \\ \hline Depreciation expense-Computer equipment & & \\ \hline Wages expense & & \\ \hline Insurance expense & & \\ \hline Rent expense & & \\ \hline Computer supplies expense & & \\ \hline Advertising expense & & \\ \hline Mileage expense & & \\ \hline Miscellaneous expenses & & \\ \hline Repairs expense-Computer & & \\ \hline Totals & & \\ \hline \end{tabular} BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2021 Revenue BUSINESS SOLUTIONS Statement of Retained Earnings For Three Months Ended December 31, 2021 \begin{tabular}{|l|l|} \hline Retained earnings, October 1, 2021 & \\ \hline & \\ \hline & \\ \hline & \\ \hline Retained earnings, December 31, 2021 & $ \\ \hline \end{tabular} BUSINESS SOLUTIONS Balance Sheet December 31, 2021 Assets Current assets Journal entry worksheet Record the entry to close the revenue account(s). Note: Enter debits before credits. Record the entry to close the expense account(s). Note: Enter debits before credits. Journal entry worksheet Record the entry to close the Income summary account. Note: Enter debits before credits. Journal entry worksheet 1 Record the entry to close the dividends account. Note: Enter debits before credits