After the success of the company's first two months, Santana Rey continues to operate Business Solutions The November 30, 2017 unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2017) follows. Credit 101 106 126 128 131 163 164 167 168 Debit $ 38,264 12,618 2,545 2.220 3,300 8,000 20,000 210 236 307 313 319 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 earnings 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 73,000 5.600 25,659 612 613 .625 637 6.00 677 $ 98,659 $95.59 Business Solutions had the following transactions and events in December 2017 Dec. 2 Paid $1,025 cash to Hillside Mall for Business Solutions' share of mall advertising costs. 3 Paid $500 cash for minor repairs to the company's computer. 4 Received $3,950 cash from Alex's Engineering Co. for the receivable from November. 1e 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 bid of $7,000 on a proposed project has been accepted. Alex's paid a $1,500 cash advance to Business Solutions 15 Purchased $1,100 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. 2e Completed a project for Liu Corporation and received 55,625 cash. 22-26 Took the week off for the holidays. 28 Received $3,000 cash from Gomez Co. on its receivable. 29 Reimbursed S. Rey for business automobile mileage (600 miles at 50.32 per mile). 31 The company paid $1,500 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 $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 has expired. Required: 1. Prepare journal entries to record each of the December transactions and events for Business Solutions. 2-0. 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, 2017 4. Prepare an income statement for the three months ended December 31, 2017 5. Prepare a statement of retained earnings for the three months ended December 31, 2017 6. Prepare a balance sheet as of December 31, 2017 7. Record and post the necessary closing entries as of December 31, 2017 8. Prepare a post-closing trial balance as of December 31, 2017 Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger Cash Accounts Receivable Debit Credit Date Debit Credit Date Dec 01 Dec 04 Dec 28 Balance 12.618 8.668 5,668 1,025 500 3,950 3,000 3,950 Balance 38 264 37.239 36,739 40,689 39.939 41,439 47,064 50.064 7 Dec 01 Dec. 02 Dec 03 Dec 04 Dec. 10 Dec. 14 Dec. 20 Dec 28 Dec. 29 (Dec 31 50 1,500 5,625 3,000 49 872 1,500 48.372 Computer Supplies Debit Credit Prepaid Insurance Debit Credit Balance Date Dec 01 Dec. 15 Dec 31 Balance 2,545 3.645 Date Dec 01 Dec 31 1.100 555 3065 Prepaid Rent Debit Credit Office Equipment Debit Credit Balance Dato Dec 01 Date Dec 01 Balance 300 000 Dec 31 2.475 Computer Equipment Debit Credit Accumulated Depreciation Office Equipment Date Debit Credit Balance Dec 01 Dec 31 Date Dec 01 Balance 20 000 Part 1 Saved Accumulated Depreciation - Computer Equipment Date Debit Credit Balance Accounts Payable Debit Credit Date Balance Dec 01 1.250 Dec 15 1.100 Wages Payable Debit Credit Unearned Computer Services Revenue Debit Credit Balance Date Balance Dec 01 Date Dec 01 Dec. 14 Dec 31 500 Common Stock - Debit Credit Retained Earnings Debit Credit Balance Date Dec 01 Balance 73,000 Date Dec 01 Dividends Debit Credit Computer Services Revenue Debit Credit Date Date Balance Balance 5.500 Dec 01 Dec 01 Depreciation Expense-Office Equipment Debit Credit Balance Date Depreciation Expense Computer Equipment Date Debit Credit Balance D01 Wages Expense Debit Credit Insurance Expense Debit Credit Balance Date Dec 01 Balance 2625 Date Dec 01 Rent Expense Debit Credit Computer Supplies Expense Debit Credit Balance Balance Date Dec 01 Date Dec 01 Advertising Expense Debit Credit Mileage Expense Debit Credit Date Date Balance Balance 1.728 Dec 01 Dec 01 Miscellaneous Expense Debit Credit Repairs Expense--Computer Debit Credit Date Balance Date Balance Income Summary Debit Credit Balance Date