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 Debit $ 39,264 13,618 2.645 2,220 3,200 2.100 163 22,000 164 167 168 201 210 236 307 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 69,000 5.900 319 403 33,569 612 623 2.325 637 640 652 655 676 677 684 1.708 624 200 745 Check my work Totals $102, 549 $102,549 Business Solutions had the following transactions and events in December 2017 Dec. 2 Paid $1,020 cash to Hillside Mall for Business Solutions' share of mall advertising costs. 3 Paid $440 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 $115 per day. 14 Notified by Alex's Engineering Co. that Business Solutions bid of $7.200 on a proposed project has been accepted. Alex's paid a $1.600 cash advance to Business Solutions. 15 Purchased $1,700 of computer supplies on credit from Harris Office Products 16 Sent a reminder to Gomex Co. to pay the foo for services recorded on November 8. 20 Completed a project for Liu Corporation and received $6,575 cash. 22- Took the week off for the holidays. 26 28 Received $3,400 cash from Gomes Co. on its receivable. 29 Reimbursed 5. Rey for business automobile mileage (500 miles at $0.23 per mile). 31 The company paid $1,100 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 $620 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. Check my work 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 has expired. 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, 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 Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Reg 28 Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Rega Prepare journal entries to record each of the December transactions and events for Business Solutions. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.)
