After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30, 2020, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2020) follows. No. 101 106 Account Title Debit Credit Cash $ 38,964 Accounts receivable 13,318 126 Computer supplies 2,645 128 Prepaid insurance 2,100 131 Prepaid rent 3,000 163 office equipment 8,700 164 Accumulated depreciation-office equipment $ 6 167 Computer equipment 20,400 168 Accumulated depreciation-Computer equipment 0 201 Accounts payable 0 210 Wages payable 236 Unearned computer services revenue 0 307 Common stock 71,000 318 Retained earnings 0 319 Dividends 6,500 403 Computer services revenue 30, 324 612 613 Depreciation expense-office equipment Depreciation expense-Computer equipment 0 623 Wages expense 2,500 637 Insurance expense 649 Rent expense 0 652 Computer supplies expense 0 655 Advertising expense 1,688 676 Mileage expense 644 677 Miscellaneous expenses 160 684 Repairs expense-Computer 705 Totals $101, 3241 $101,324 Business Solutions had the following transactions and events in December 2020. Dec. 2 Paid $1,000 cash to Hillside Mall for Business Solutions's share of mall advertising costs. 3 Paid $480 cash for minor repairs to the company's computer.. 4 Received $4,050 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 $125 per day. 14 Notified by Alex's Engineering Co. that Business Solutions's bid of $7,000 on a proposed project has been accepted. Alex's paid a $1,900 cash advance to Business Solutions. 15 Purchased $1,900 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. 22- Took the week off for the holidays. 26 28 Received $4,000 cash from Gonez Co. on its receivable. 29 Reimbursed S. Rey for business automobile mileage (500 miles at $0.28 per mile). 31 The company paid $1,400 cash in dividends, This fallnisa Prev 1 of 1 Next SEMSUNG Business Solutions, Unadjusted Trial Balance, December 31, 2020 # 101 Account Cash 106 Accounts receivable 126 Computer supplies 128 Prepaid Insurance 131 Prepaid rent 163 Office equipment 164 167 168 201 210 Wages payable 236 Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable Unearned computer services revenue 307 Common stock 318 Retained earnings 319 Dividends 403 612 613 623 637 640 652 655 676 Mileage expense 677 684 Computer services revenue Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Miscellaneous expenses Repairs expense-Computer Totals Debit Credit Business Solutions, Adjusted Trial Balance, December 31, 2020 # Account 101 Cash 106 Accounts receivable 126 Computer supplies 128 Prepaid insurance 131 Prepaid rent 163 Office equipment 164 167 Computer equipment 168 Accumulated depreciation-Office equipment Accumulated depreciation-Computer equipment 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue 307 Common stock 318 Retained earnings 319 Dividends 403 612 613 623 637 640 Rent expense 652 655 676 Mileage expense 677 684 Computer services revenue Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense Computer supplies expense Advertising expense Miscellaneous expenses Repairs expense-Computer Totals Debit Credit Business Solutions, Post-Closing Trial Balance, December 31, 2020 # Account Totals Debit SAMSUND Credit Analyze your results for Business Solutions by answering the specific questions on the provided memo form in Canvas. The following questions should be answered in your analysis, your writing must be in your own work. Based on your financial statements for Business Solutions answer the following questions: 1. Complete the accounting equation for Business Solutions using the amounts in this format: $ = $ + S 2. In discussing Business Solutions latest financial statements, you as the manager say that it is the "the net income results on the bottom line" that really count. What do you mean? Which financial statement are you referring to? Are the results reflected satisfactory? Explain your answers. 3. Does Business Solutions have enough cash to pay its liabilities on December 31, 2020? Please list the December 31 balance of cash, subtract the amount of total current liabilities and calculate the overage or shortfall cash amount. Does Business Solutions need to improve this situation? If your answer is that no improvement is needed, please describe what they are doing correctly. If your answer is yes improvement is needed, please provide a suggestion on how the company may improve. 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, 2020. 4. Prepare an income statement for the three months ended December 31, 2020. 5. Prepare a statement of retained earnings for the three months ended December 31, 2020. 6. Prepare a balance sheet as of December 31, 2020. 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, 2020