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. Credit Debit $ 38,264 13,018 2,645 2,040 3,240 8,800 21,200 168 No. Account Title 101 Cash 106 Accounts receivable 126 Computer supplies 128 Prepaid insurance 131 Prepaid rent 163 Office equipment Accumulated depreciation-office 164 equipment 167 Computer equipment 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 Totals 70,000 6,100 30,954 2,350 1,688 664 16e 785 $100,954 $100,954 Business Solutions had the following transactions and events in December 2018. Dec. 2 Paid $980 cash to Hillside Mall for Business Solutions share of mall advertising costs. 3 Paid $470 cash for minor repairs to the company's computer. 4 Received $4,250 cash from Alex's Engineering Co. for the receivable from November. 19 Paid cash to Lyn Addie for six days of work at the rate of $100 per day. 14 Notified by Alex's Eneineerine Co. that Business Solutions bid of $7.600 on a proposed protect 14 Notified by Alex's Engineering Co. that Business Solutions' bid of $7,680 on a proposed project has been accepted. Alex's paid a $1,600 cash advance to Business Solutions 15 Purchased $1,700 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 $6,225 cash. 22 Took the week off for the holidays. -26 28 Received $3,400 cash from Gomez Co. on its receivable. 29 Reimbursed S. Rey for business automobile mileage (600 miles at $e. 24 per mile). 31 The company paid $1,000 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 $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 $100 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. 4. 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 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 General Journal Credit No 1 Date Dec 02 Debit 980 2 300 Advertising expense Cash 980 21 Dec 03 470 Repairs expense-Computer Cash Dec 04 4.250 Accounts receivable 4.250 Dec 10 600 Wages expense Cash 600 5 Dec 14 Cash Unearned computer services revenue 1,600 2 6 Dec 15 Computer supplies Accounts payable 7 Dec 16 No journal entry required Dec 20 Cash Computer services revenue 91 Dec 28 Cash Accounts receivable 10 Dec 29 Mileage expense Cash 11 Dec 31 Dividends Cash 1.000 1.000 View transaction list View journal entry worksheet No Transaction Credit General Journal Computer supplies expense Computer supplies Debit 3.765 3,765 Insurance expense Prepaid insurance 510 510 Wages expense Wages payable 400 400 d. Depreciation expense-Computer equipment Accumulated depreciation - Computer equipment 1,325 1,325 Depreciation expense Office equipment Accumulated depreciation Office equipment Rent expense Prepaid rent 1,755 1.755 Cash Accounts Receivable Debit Credit Debit Credit Date Dec 01 Dec. 04 Dec. 28 Balance 13.018 8.768 980 470 4.250 3.400 5,368 4.250 Dato Dec 01 Dec, 02 Dec. 03 Dec. 04 Dec. 10 Dec. 14 Dec. 20 Dec, 28 Dec. 29 Dec 31 600 Balance 38,264 37,284 36,814 41.064 40,464 42,064 48 289 51.689 51,545 50545 6 1,600 ,225 3.4001 144 1.000 Computer Supplies Debit Credit Date Dec 01 Dec 15 Balance 2.645 4,345 580 Date Dec. 01 Dec. 31 Prepaid Insurance Debit Credit Balance 2,040 5101 ,530 1,700 Dec 31 Prepaid Rent Debit Credit Dato Dec 01 Dec. 31 Balance 3.2401 Office Equipment Debit Credit Date Dec 01 Balance 9.800 1485 Accumulated Depreciation Date Debit Dec 01 Dec 31 Office Equipment Credit Balance Computer Equipment Debit Credit Date Balance 0 Dec 01 440 A mulated Denciation Commuter Fouinment Accounts Payable Debit Credit Balance Accumulated Depreciation-Computer Equipment Date Debit Credit Balance Dec 01 0 Dec 31 1,325 1,325 Date Dec 01 Dec. 15 1,700 1,700 Wages Payable Debit Credit Unearned Computer Services Revenue Debit Credit Balance Balance Date Dec. 01 Dec. 31 Date Dec. 01 Dec. 14 400 400 1,600 1,600 Common Stock Debit Credit Retained Earnings Debit Credit Balance Date Dec. 01 Balance 70,000 Date Dec. 01 Dec. 31 Dec. 31 Dividends Debit Credit Computer Services Revenue Debit Credit Date Dec 01 Balance 6.100 7.100 Balance 30,954 1 Date Dec 01 Dec. 31 Dec. 31 1 .000 7.100 Depreciation Expense-Office Equipment Debit Credit Balance Depreciation Expense Computer Equipment Date Debit Credit Balance Dec 01 Date Dec. 01 Dec. 31 Dec. 31 440 Wages Expense at Insurance Expense nahi Wages Expense Debit Credit Insurance Expense Debit Credit Date Dec. 01 Balance Date Dec. 01 Dec 10 Dec 31 Dec. 31 600 400 Balance 2,350 2,950 3,350 0 3,350 Rent Expense Debit Credit Computer Supplies Expense Debit Credit Date Dec. 01 Dec 31 Dec 31 Date Dec 01 Balance 1,755 Balance - 0 1,755 0 0 ces ( 1,755 Date Dec. 01 Advertising Expense Debit Credit Balance 1,688 Mileage Expense Debit Credit Date Dec. 01 Balance Miscellaneous Expense Debit Credit I Repairs Expense Computer Debit Credit Balance 160 Date Dec. 01 Dec. 02 Dec 31 Date Dec. 01 Balance 980 1.1401 1,140 Date Income Summary Debit Credit Balance Prepare an adjusted trial balance as of December 31, 2018. Debit Credit / / / / / / / / / / / / / / / / / / / / / / / / / / Z / / / / BUSINESS SOLUTIONS Adjusted Trial Balance December 31, 2018 Account Title 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 earings 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 0 $ Req 1 Reg 1 Req 2A Rea za Rea 2 Req 28 Reg 3 Rea 3 Reg 4 raas Reg 5 reas Reg 6 Rego Req 7 Reg? Prepare an income statement for the three months ended December 31, 2018. BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2018 Revenue Req 4 Expenses Total expenses Req1 Req 2A Req 2B Req 3 Reg 4 Reg 5 Reg 6 Reg 7 Prepare a statement of retained earnings for the three months ended December 31, 2018 BUSINESS SOLUTIONS Statement of Retained Earnings For Three Months Ended December 31, 2018 Retained earings, October 1, 2018 0 Retained earnings, December 31, 2018 $ 0 rul JA VAJ. BUSINESS SOLUTIONS Balance Sheet December 31, 2018 Assets Total Assets Liabilities Total Liabilities Equity Total Liabilities and Equity 4 Close the expense accounts. Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31 C anto Req 1 Req 2A Req 2B Req3 Req 4 Req 5 Req6 Req 7 Record and post the necessary closing entries as of December 31, 2018. (If no entry is required for Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Complete this question by entering your answers in the tabs below. Req 2A Req 28 Req 1 Reg 3 Req 4 Reg 5 Reg 7 Reg 6 Req 8 Record and post the necessary closing entries as of December 31, 2018. (If no entry is required for a transact Journal Entry Required in the first account field.) View transaction list Journal entry worksheet