After the success of the companys first two months, Santana Rey continues to operate Business Solutions. The November 30, 2011, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2011) follows. No. Account Title Debit Credit 101 Cash $ 38,464 106 Accounts receivable 13,518 126 Computer supplies 2,545 128 Prepaid insurance 2,220 131 Prepaid rent 3,280 163 Office equipment 8,100 164 Accumulated depreciationOffice equipment $ 0 167 Computer equipment 23,600 168 Accumulated depreciationComputer equipment 0 201 Accounts payable 0 210 Wages payable 0 236 Unearned computer services revenue 0 301 Common stock 64,000 Retained earnings 0 302 Dividends 6,600 403 Computer services revenue 40,014 612 Depreciation expenseOffice equipment 0 613 Depreciation expenseComputer equipment 0 623 Wages expense 2,400 637 Insurance expense 0 640 Rent expense 0 652 Computer supplies expense 0 655 Advertising expense 1,688 676 Mileage expense 654 677 Miscellaneous expenses 180 684 Repairs expenseComputer 765 Totals $ 104,014 $ 104,014 Business Solutions had the following transactions and events in December 2011. Dec. 2 Paid $1,015 cash to Hillside Mall for Business Solutions share of mall advertising costs. 3 Paid $430 cash for minor repairs to the companys computer. 4 Received $4,250 cash from Alexs Engineering Co. for the receivable from November. 10 Paid cash to Lyn Addie for six days of work at the rate of $120 per day. 14 Notified by Alex's Engineering Co. that Business Solutions bid of $7,600 on a proposed project has been accepted. Alexs paid a $1,600 cash advance to Business Solutions. 15 Purchased $1,500 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 $6,275 cash. 2226 Took the week off for the holidays. 28 Received $3,400 cash from Gomez Co. on its receivable. 29 Reimbursed S. Rey for business automobile mileage (500 miles at $0.24 per mile). 31 The business paid $1,000 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 $650 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 $120 per day. d. The company's computer is expected to have a four-year life with no salvage value. e. The office equipment is expected to have a five-year life with no salvage value. f. Three of the four months' prepaid rent has expired. Required: 1. Prepare journal entries to record each of the December transactions and events for Business Solutions. (In cases where no entry is required, please select the option "No journal entry required" for your answer to grade correctly. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Date General Journal Debit Credit Dec. 2 3 4 10 14 15 16 20 28 29 31 2.1 Prepare adjusting entries to reflect a through f. (Omit the "$" sign in your response.) Date General Journal Debit Credit Dec. 31 2.2 Post the journal entries to record each of the December transactions and adjusting entries to the accounts in the ledger. (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) General Ledger Accounts Cash Acct. No. 101 Date Debit Credit Balance Dec. 1 2 3 4 10 14 20 28 29 31 Accounts Receivable Acct. No. 106 Date Debit Credit Balance Dec. 1 4 28 Computer Supplies Acct. No. 126 Date Debit Credit Balance Dec. 1 15 31 Prepaid Insurance Acct. No. 128 Date Debit Credit Balance Dec. 1 31 Prepaid Rent Acct. No. 131 Date Debit Credit Balance Dec. 1 31 Office Equipment Acct. No. 163 Date Debit Credit Balance Dec. 1 Accumulated DepreciationOffice Equipment Acct. No. 164 Date Debit Credit Balance Dec. 1 31 Computer Equipment Acct. No. 167 Date Debit Credit Balance Dec. 1 Accumulated DepreciationComputer Equipment Acct. No. 168 Date Debit Credit Balance Dec. 1 31 Accounts Payable Acct. No. 201 Date Debit Credit Balance Dec. 1 15 Wages Payable Acct. No. 210 Date Debit Credit Balance Dec. 1 31 Unearned Computer Services Revenue Acct. No. 236 Date Debit Credit Balance Dec. 1 14 Common Stock Acct. No. 307 Date Debit Credit Balance Dec. 1 Retained Earnings Acct. No. 318 Date Debit Credit Balance Dec. 1 Dec. 31 31 Dividends Acct. No. 319 Date Debit Credit Balance Dec. 1 31 31 Computer Services Revenue Acct. No. 403 Date Debit Credit Balance Dec. 1 20 31 Depreciation ExpenseOffice Equipment Acct. No. 612 Date Debit Credit Balance Dec. 1 31 31 Depreciation ExpenseComputer Equipment Acct. No. 613 Date Debit Credit Balance Dec. 1 31 31 Wages Expense Acct. No. 623 Date Debit Credit Balance Dec. 1 10 31 31 Insurance Expense Acct. No. 637 Date Debit Credit Balance Dec. 1 31 31 Rent Expense Acct. No. 640 Date Debit Credit Balance Dec. 1 31 31 Computer Supplies Expense Acct. No. 652 Date Debit Credit Balance Dec. 1 31 31 Advertising Expense Acct. No. 655 Date Debit Credit Balance Dec. 1 2 31 Mileage Expense Acct. No. 676 Date Debit Credit Balance Dec. 1 29 31 Miscellaneous Expenses Acct. No. 677 Date Debit Credit Balance Dec. 1 31 Repairs Expense - Computer Acct. No. 684 Date Debit Credit Balance Dec. 1 3 31 Income Summary Acct. No. 901 Date Debit Credit Balance Dec. 31 31 31 3. Prepare an adjusted trial balance as of December 31, 2011. (The items in the Trial Balance should be grouped as follows: Assets and Liabilities (in order of their liquidity) then Equity, Revenues, and Expenses. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) BUSINESS SOLUTIONS Adjusted Trial Balance December 31, 2011 Debit Credit $ $ Totals $ $ 4. Prepare an income statement for the three months ended December 31, 2011. (Input all amounts as positive values. Omit the "$" sign in your response.) BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2011 Debit Credit Revenue $ Expenses $ Total expenses $ 5. Prepare a statement of owners equity for the three months ended December 31, 2011. (Input all amounts as positive values. Omit the "$" sign in your response.) BUSINESS SOLUTIONS Statement of Owner's Equity For Three Months Ended December 31, 2011 $ $ 6. Prepare a balance sheet as of December 31, 2011. (Be sure to list the assets and liabilities in order of their liquidity. Amounts to be deducted should be indicated with minus sign. Omit the "$" sign in your response.) BUSINESS SOLUTIONS Balance Sheet December 31, 2011 Assets $ $ Total Assets $ Liabilities $ Total Liabilities Equity Total equity Total Liabilities and Equity $ 7. Record and post the necessary closing entries for Business Solutions. (Omit the "$" sign in your response.) Date General Journal Debit Credit Dec. 31, 2011 Dec. 31, 2011 Dec. 31, 2011 Dec. 31, 2011 8. Prepare a post-closing trial balance as of December 31, 2011. (The items in the Trial Balance should be grouped as follows: Assets and Liabilities (in order of their liquidity) then Equity, Revenues, and Expenses. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) BUSINESS SOLUTIONS Post-Closing Trial Balance December 31, 2011 Debit Credit $ $ Totals $ $