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 Account Title Cash 106 Accounts receivable 126 Computer supplies 128 Prepaid insurance 131 Prepaid rent 163 Office equipment 164 Accumulated depreciation-office equipment 167 Computer equipment 168 Accumulated depreciation-Computer equipment 201 210 Accounts payable Wages payable 236 Unearned computer services revenue 307 Common stock 318 Retained earnings 319 Dividends 403 Computer services revenue 612 613 Depreciation expense-Office equipment 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 901 Income summary Debit $38,264 Credit 12,618 2,545 2,220 3,300 8,000 20,000 73,000 5,600 25,659 e 2,625 e 1,728 704 250 805 e $ 98,659 $ 98,659 Totals Business Solutions had the following transactions and events in December 2021. December 2 Paid $1,025 cash to Hillside Mall for Business Solutions's share of mall advertising costs. December 3 Paid $500 cash for minor repairs to the company's computer. December 4 Received $3,950 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 $7,000 on a proposed project has been accepted. Alex's paid a $1,500 cash advance to Business Solutions. December 15 Purchased $1,100 of computer supplies on credit from Harris Office Products. Business Solutions had the following transactions and events in December 2021. December 2 Paid $1,025 cash to Hillside Mall for Business Solutions's share of mall advertising costs. December 3 Paid $500 cash for minor repairs to the company's computer. December 4 Received $3,950 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 $7,000 on a proposed project has been accepted. Alex's paid a $1,500 cash advance to Business Solutions. December 15 Purchased $1,100 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 $5,625 cash. December 22-26 Took the week off for the holidays. December 28 Received $3,000 cash from Gomez Company on its receivable. December 29 Reimbursed 5. Rey for business automobile mileage (600 miles at $0.32 per mile). December 31 Paid $1,500 cash for 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 $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-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. Prev 1 of 1 Next Required 1 Required 2A Required 28 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger. 101: Cash Date December 01 Debit Credit Balance Date 106: Accounts Receivable Debit Credit Balance 38.264 December 01 12.618 Date December 01 Date December 01 126: Computer Supplies Debit 131: Prepaid Rent Debit 128: Prepaid Insurance Credit Balance 2,545 Date December 011 Debit Credit Balance 2,220 Credit Balance Date 3,300 December 01 163: Office Equipment Debit Credit Balance 8,000 Date December 01 131: Prepaid Rent Debit Credit Balance Date 3,300 December 01 164: Accumulated Depreciation-Office Equipment Date December 01 Debit Credit Balance Date 0 December 01 168: Accumulated Depreciation-Computer Equipment Date December 01 Date December 01 Debit Credit 210: Wages Payable Debit Balance Date December 01 Credit Balance 0 Date December 01 Date December 01 307: Common Stock Debit Credit Balance Date 73,000 December 01 163: Office Equipment Debit Credit Balance 8,000 167: Computer Equipment Debit Credit Balance 20,000 201: Accounts Payable Debit Credit Balance 236: Unearned Computer Services Revenue Debit Credit 310: Retained Earnings Debit Balance 0 Credit Balance 0 oki ces Date December 01 307: Common Stock Debit Credit Balance 73,000 Date December 01 Date December 01 319: Dividends Debit Credit Balance 5,600 Date December 01 612: Depreciation Expense-Office Equipment Date December 01 Date December 01 Debit Credit 623: Wages Expense Debit 318: Retained Earnings Debit Credit Balance 0 403: Computer Services Revenue Debit Credit Balance 25,659) 613: Depreciation Expense-Computer Equipment Balance 0 Date December 01 Credit Balance Date 2,625 December 01 Debit Credit 637: Insurance Expense Debit Date December 01 623: Wages Expense Debit Date December 011 Date: December 01 Date December 01 Credit Balance Date 2,625 December 01 640: Rent Expense Debit Credit Balance Date 0 December 01 655: Advertising Expense Debit Credit Balance 1,728 Date December 01 677: Miscellaneous Expense Debit Credit Balance 250 Date December 01 637: Insurance Expense Debit Credit Balance 0 652: Computer Supplies Expense Debit Credit 676: Mileage Expense Debit Balance 0 Credit Balance 704 684: Repairs Expense-Computer Debit Credit Balance 805 Date Debit Credit Balance Date: Debit Credit Balance December 01 0 December 011 0 Date December 01 655: Advertising Expense Debit Credit Balance 1,728 Date December 011 Date December 01 677: Miscellaneous Expense Debit Credit Balance 250 Date December 01 676: Mileage Expense Debit Credit Balance 704 684: Repairs Expense-Computer Debit Credit Balance 805 Required 1 Required 2A Required 2B Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Prepare an income statement for the three months ended December 31, 2021. Revenue BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2021 Expenses Total expenses 0 $ 0 Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 28 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Prepare a statement of retained earnings for the three months ended December 31, 2021. BUSINESS SOLUTIONS Statement of Retained Earnings For Three Months Ended December 31, 2021 Retained earnings, October 1, 2021 0 Retained earnings, December 31, 2021 $ 0 < Required 4 Required 6 > ok t ces Current assets Cash BUSINESS SOLUTIONS Balance Sheet December 31, 2021 Assets Plant assets 0 0 0 0 $ 0 Liabilities 0 Equity Ok Assets Current assets Cash t Plant assets nces Total equity Total liabilities and equity 0 0 0 0 S 0 Liabilities 0 Equity 0 $ 0 Required 5 Required 7 View transaction list Journal entry worksheet < 1 2 3 4 Record the entry to close the revenue account(s). Note: Enter debits before credits. Date December 31 General Journal Debit Credit Record entry Clear entry View general Journal 1 of 1 Next Journal entry worksheet < 1 2 3 4 Record the entry to close the expense account(s). Note: Enter debits before credits. Date December 31 General Journal Debit Credit Journal entry worksheet < 1 2 3 4 Record the entry to close the Income summary account. ote: Enter debits before credits. Date December 31 General Journal Debit Credit > < 1 2 3 4 Record the entry to close the dividends account. Note: Enter debits before credits. Date December 31 General Journal Debit Credit Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Prepare a post-closing trial balance as of December 31, 2021. BUSINESS SOLUTIONS Post-Closing Trial Balance Cash Accounts receivable Computer supplies Prepaid insurance December 31, 2021 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 Totals Debit Credit 0 < Required 7 Required 8 > < Prev 1 of 1 Next