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 Accounts payable 210 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 652 655 Advertising expense 676 677 684 901 Computer supplies expense Mileage expense Miscellaneous expenses Repairs expense-Computer Incone summary Totals Debit $39,064 Credit 13,318 2,645 2,040 3,220 8,100 20,400 0 0 64,000 6,100 36,674 0 2,500 0 0 1,668 6541 240 725 $ 100,674 $ 100,674 t nces December 2 Paid $1,005 cash to Hillside Mall for Business Solutions's share of mall advertising costs. December 3 Paid $490 cash for minor repairs to the company's computer. December 4 Received $4,550 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 $115 per day. December 14 Notified by Alex's Engineering Company that Business Solutions's bid of $7,100 on a proposed project has been accepted. Alex's paid a $2,400 cash advance to Business Solutions. December 15 Purchased $1,300 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 $6,425 cash. December 22-26 Took the week off for the holidays. December 28 Received $3,800 cash from Gomez Company on its receivable. December 29 Reimbursed S. Rey for business automobile mileage (500 miles at $0.28 per mile). December 31 Paid $1,200 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 $610 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. 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. 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. Required 1 Required 2A Required 2B 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 106: Accounts Receivable Date Debit Credit Balance Date Debit Credit Balance December 011 39,064 December 01 13,318 December 02 1,005 38,050 December 04 4,550 8,768 December 03 490 37,569 December 28 3,800 4,968 December 04 4,550 42,119 December 10 690 41,429 December 14 2,400 43,829 December 20 6,425 50,254 December 28 3,800 54,054 December 29 140 53,914 December 31 1,200 52,714 Date December 01 December 15 December 31 126: Computer Supplies Debit Credit Balance Date 2,645 December 01 1,300 3,945 December 31 3,335 610 128: Prepaid Insurance Debit Credit Balance 2,040 610 1,430 Date December 01 126: Computer Supplies Debit December 15 December 31 Date December 01 December 31 Credit Balance 2,645 Date December 01 1,300 3,945 December 31 3,335 610 131: Prepaid Rent Debit 128: Prepaid Insurance Debit Credit Balance 2,040 610 1,430 Credit Balance Date 163: Office Equipment Debit Credit Balance 1,600 3,220 1,620 December 01 8,100 164: Accumulated Depreciation-Office Equipment Date December 01 December 31 Debit Credit 167: Computer Equipment Balance Date Debit Credit Balance 0 December 01 20,400 168: Accumulated Depreciation-Computer Equipment Date December 01 Date: December 01 December 31 Date December 01 Debit Credit 210: Wages Payable Debit Balance Date 0 December 01 December 15 Credit Balance 0 Date December 01 307: Common Stock Debit Credit Balance Date 64,000 December 01 319: Dividends Date Debit Credit Balance December 01 6,100 Date December 01 201: Accounts Payable Debit Credit Balance 0 236: Unearned Computer Services Revenue Debit Credit 318: Retained Earnings Debit Balance 0 Credit Balance 0 403: Computer Services Revenue Credit Debit Balance. 36,674 ok 612: Depreciation Expense-Office Equipment Date December 01 Date December 01 December 10 nces December 31 Date December 01 December 31 Debit Credit 623: Wages Expense Debit 613: Depreciation Expense-Computer Equipment Date Debit Credit Balance 0 December 01 December 311 Credit Balance Date 2,500 December 01 640: Rent Expense Debit Credit Balance. Date December 01 December 31 637: Insurance Expense Debit Balance 0 Credit Balance 0 652: Computer Supplies Expense Debit Credit Balance 3,335 3,335 3,335 0 Date December 01 December 02 December 31 Date December 01 655: Advertising Expense Debit Credit Balance Date 1,668 December 01. 1,005 2,673 December 29 3,335 (662) December 311 677: Miscellaneous Expense Debit Credit Balance 240 Date December 01 December 03 December 31 676: Mileage Expense Debit 140 Credit Balance 654 794 684: Repairs Expense-Computer Debit Credit Balance 725 490 1,215 3,335 (2,120)