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.

Business Solutions had the following transactions and events in December 2021.

December 2 Paid $1,025 cash to Hillside Mall for Business Solutions's share of mall advertising costs.

December 3 Paid $440 cash for minor repairs to the company's computer.

December 4 Received $4,450 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 $110 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 $1,600 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 $6,225 cash.

December 22-26 Took the week off for the holidays.

December 28 Received $3,900 cash from Gomez Company on its receivable.

December 29 Reimbursed S. Rey for business automobile mileage (600 miles at $0.25 per mile).

December 31 Paid $1,500 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.

1. The December 31 inventory count of computer supplies shows $640 still available.
2. Three months have expired since the 12-month insurance premium was paid in advance.
3. As of December 31, Lyn Addie has not been paid for four days of work at $110 per day.
4. The computer system, acquired on October 1, is expected to have a four-year life with no salvage value. 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.

1. b. Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger.
2. Prepare an adjusted trial balance as of December 31, 2021.
3. Prepare an income statement for the three months ended December 31, 2021.
4. Prepare a statement of retained earnings for the three months ended December 31, 2021.
5. Prepare a classified balance sheet as of December 31, 2021.
6. Record the necessary closing entries as of December 31, 2021.
7. Prepare a post-closing trial balance as of December 31, 2021.

\begin{tabular}{|l|l|l|} \hline \multicolumn{1}{|c|}{ Liabilities } & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \multicolumn{2}{|c|}{ Equity } & \\ \hline & & \\ \hline Total equity & & \\ \hline Total Liabilities and Equity & & \\ \hline \end{tabular} Journal entry worksheet Record the entry to close the revenue account(s). Note: Enter debits before credits. Business Solutions had the following transactions and events in December 2021. December 2 Paid $1,025 cash to Hillside Mall for Business Solutions's share of mall advertising costs. December 3 Paid $440 cash for minor repairs to the conpany's computer. December 4 Received $4,450 cash from Alex's Engineering Company for the receivable fron Novenber. December 10 Paid cash to Lyn Addie for six days of work at the rate of $ illo per day. December 14 Notified by Alex's Engineering Company that Business Solution's's bid of \$7,160 on a proposed project has been accepted. Alex's paid a $1,600 cash advance to Business solutions. December 15 Purchased $1,400 of computer supplies on credit tron Harris office Products. December 16 Sent a reminder to Gomez Company to pay the fee for services recorded on Novenber 8. December 20 Completed a project for Liu Corporation and received $6,225 cash. December 22-26 Took the week off for the holidays. December 28 Received $3,900 cash from Gomez Company on its receivable. December 29 Reimbursed S. Rey for business automobile mileage (600 miles at 30.25 per mile). December 31 Paid $1,500 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 $640 still available. b. Three months have explred since the 12 -month insurance premium was paid in advance. c. As of December 31, Lyn Addle has not been paid for four days of work at \$110 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. Prepare a classified halanro chent Prepare a statement of retained earnings for the three months ended December 31,2021. Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger. Note: If no entry is required for a transaction or event, select "No journal entry required" in the first account fleld Journal entry worksheet Paid $1,025 cash to Hillside Mall for Business Solutions's share of mall advertising costs. Note: Enter debits before credits. 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. Business Solutions had the following transactions and events in Decemoer zust. \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ 640: Rent Expense } \\ \hline Date & Debit & Crodit & Balance: \\ \hline December 01 & & & 0 \\ \hline & & & \\ \hline 7 & & & \\ \hlineF & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ 652: Computer Supplles Expense } \\ \hline Dato & Dobit : & Credit & Batance: \\ \hline December 01 & & & 0 \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} 655: Advortising Expense \begin{tabular}{|c|c|c|c|} \hline \\ \hline Date & Debit & Credit & Balance \\ \hline December 01 & & & 1,648 \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ 677: Miscellaneous Expense } \\ \hline Date & Debit & Grodit & Balance \\ \hline December 01 & & & 180 \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} 676: Miloage Expenso \begin{tabular}{|r|r|r|r|} \hline Dato & Debit & Credit & Balance \\ \hline December 01 & & & 684 \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} 034: Repairs Expense-Computer \begin{tabular}{|c|c|c|c|} \hline Date & Dobit & Credit & Balance \\ \hline December 01 & & & 705 \\ \hline & & & \\ \hline & & & \\ \hline 48 & & & \\ \hline \end{tabular} Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger: \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ 131: Prepaid Rent } \\ \hline Date & Debit & Credit & Balanco \\ \hline December 01 & & & 3,100 \\ \hline 5 & & & \\ \hline & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline \multicolumn{3}{|c|}{ 164: Accumulated Dopreciation-Office Equipment } \\ \hline Date & Debit & Crodit & Balance \\ \hline December 01 & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ 168: Accumulated Depreciation-Computer Equipment } \\ \hline Date & Debit & Credit & Balance \\ \hline December 01 & & & 0 \\ \hline \\ \hline & & & \\ \hline & & & \\ \hline \multicolumn{4}{|c|}{ 210: Wages Payable } \\ \hline Dato & Debit & Credit & Balance \\ \hline December 01 & & & \multirow[t]{2}{*}{0} \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ 201: Accounts Payable } \\ \hline Date & Debit & Crodit & Batance \\ \hline Decembet 01 & & & 0 \\ \hline & & & \\ \hline & & & \\ \hline \multicolumn{4}{|c|}{ 236: Uneamed Computer Services Revenue } \\ \hline Date & Debit & Credit & Batance 4 \\ \hline December 01 & & & 0 \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} 307: Common Stock 318: Retained Earnings Required: 1. Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledget. 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 ledget: 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. Prepare a post-closing trial balance as of December 31, 2021. Prepare an adjusted trial balance as of December 31,2021. Prepare an income statement for the three months ended December 31,2021. Prepare adjusting entries to reflect a through f. Note: If no entry is required for a transaction or event, select "No journal entry required" in the first account field. Journal entry worksheet 56 The December 31 inventory count of computer supplies shows $640 still available. Note: Enter debits before credits