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 Account Title Debit 101 Credit Cash $ 38,864 106 Accounts receivable 13,518 126 Computer supplies 2,645 128 Prepaid insurance 1,980 131 Prepaid rent 3,200 163 office equipment 8,700 164 Accumulated depreciation office equipment 167 Computer equipment 23,600 168 Accumulated depreciation Computer equipment 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue 307 Common atock 70,000 318 Retained earnings 319 Dividends 6,300 403 Computer services revenue 34,574 612 Depreciation expense office equipment 613 Depreciation expense-Computer equipment 0 623 Wages expense 2,500 637 Insurance expense 640 Rent expense 652 Computer supplies expense 655 Advertising expense 1,678 676 Mileage expense 634 677 Miscellaneous expenses 220 634 Repairs expense-Computer 735 901 Income summary Totals $ 104,574 $ 104,574 0 0 0 0 0 0 0 0 0 Business Solutions had the following transactions and events in December 2021. December 2 Paid $1,015 cash to Hillside Mall for Business Solutions's share of mall advertising costs. December 3 Paid $480 cash for minor repairs to the company's computer. December 4 Received $4,850 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 $105 per day. December 14 Notified by Alex's Engineering Company that Business Solutions's bid of $7,700 on a proposed project has been accepted. Alex's paid a $2,100 cash advance to Business Solutions. December 15 Purchased $1,400 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 $5,675 cash. December 22-26 Took the week off for the holidays. December 28 Received $3,200 cash from Gomez Company on its receivable. December 29 Reimbursed S. Rey for business automobile mileage (600 miles at $0.28 per mile). December 31 Paid $1,400 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 $660 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 $105 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 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. Journal entry worksheet Paid $1,015 cash to Hillside Mall for Business Solutions's share of mall advertising costs. Note: Enter debits before credits. General Journal Debit Credit Date December 02 Record entry Clear entry View general journal 8 11 ..... Received $4,850 cash from Alex's Engineering Company for the receivable from November. Note: Enter debits before credits. General Journal Debit Credit Date December 04 Record entry Clear entry View general Journal 1 3 N Paid cash to Lyn Addie for six days of work at the rate of $105 per day. Note: Enter debits before credits. General Journal Debit Credit Date December 10 Record entry Clear entry View general 4 > 5 8 6 7 1 2 3 11 ##### Notified by Alex's Engineering Company that Business Solutions's bid of $7,700 on a proposed project has been accepted. Alex's paid a $2,100 cash advance to Business Solutions. Note: Enter debits before credits. General Journal Debit Credit Date December 14 Record entry Clear entry View general journal 11 .... Purchased $1,400 of computer supplies on credit from Harris Office Products. Note: Enter debits before credits. General Journal Debit Credit Date December 15 Record entry Clear entry View general Journal * 1 2 3 4 5 6 7 8 11 ..... Sent a reminder to Gomez Company to pay the fee for services recorded on November 8. Hote: Enter debits before credits. General Journal Debit Credit Date December 16 Record entry Clear entry View general jc EE.. Received $3,200 cash from Gomez Company on its receivable. Note: Enter debits before credits. Date General Journal Debit Credit December 28 Record entry Clear entry View general journal 10 9 11 1 ... 4 5 6 7 8 Reimbursed S. Rey for business automobile mileage (600 miles at $0.28 per mile) Note: Enter debits before credits. General Journal Debit Credit Date December 29 Record entry Clear entry View general journal The December 31 inventory count of computer supplies shows $660 still available. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View general Journal Three months have expired since the 12-month insurance premium was paid in advance. Note: Enter debits before credits. General Journal Debit Credit Transaction b. Record entry Clear entry View general journal Prepare an adjusted trial balance as of December 31, 2021. BUSINESS SOLUTIONS Adjusted Trial Balance December 31, 2021 Debit Credit 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 -- 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 Required 2R Required 4 Prepare an income statement for the three months ended December 31, 2021. BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2021 Revenue Expenses Total expenses Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Prepare a statement of retained earnings for the three months ended December 31, 2021. BUSINESS SOLUTIONS Statement of Retained Earnings For Three Months Ended December 31, 2021 Retained earnings, October 1, 2021 Retained earnings, December 31, 2021 Prepare a classified balance sheet as of December 31, 2021. BUSINESS SOLUTIONS Balance Sheet December 31, 2021 Assets Current assets Plant assets Llabilities Plant assets Liabilities Equity Total equity Total Liabilities and Equity Record the entry to close the revenue account(s). Note: Enter debits before credits. General Journal Debit Credit Date December 31 Record entry Clear entry View general journal