After the success of the company's first two months, Santana Rey continues to operate Business Solutions. Refer to Chapter 2 - Requirement 3 for the November 30th unadjusted trial balance. Account No. 164 Accumulated Depreciation-Office Equipment Accumulated Depreciation-Computer Equipment 168 210 236 318 Wages Payable Unearned Computer Services Revenue Retained Earnings Business Solutions had the following transactions and events in December 2021. December: 2 3 4 10 14 Account Depreciation Expense-Office Equipment Depreciation Expense-Computer Equipment Insurance Expense Rent Expense Computer Supplies Expense 15 16 20 22-26 28 29 31 Paid $1,025 cash to Hillside Mall for Business Solution's share of mall advertising costs. Paid $500 cash for minor repairs to the company's computer. Received $3,950 cash from Alex's Engineering Co. for the receivable from November. Paid cash to Lyn Addie for six days of work at the rate of $125 per day. Notified by Alex's Engineering Co. that Business Solution's bid of $7,000 on a proposed project has been accepted. Alex's paid a $1,500 cash advance to Business Solutions. Purchased $1,100 of computer supplies on credit from Harris Office Products. Sent a reminder to Gomez Co. to pay the fee for services recorded on November 8. Completed a project for Liu Corporation and received $5,625 cash. Took the week off for the holidays. Received $3,000 cash from Gomez Co. on its receivable. Reimbursed S. Rey for business automobile mileage (600 miles at $0.32 per mile). 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 have expired. No. 612 613 637 640 652

Business Solutions Balance Sheet December 31, 2021 6 Assets 7 Cash Accounts Receivable Computer Supplies Prepaid Insurance Prepaid Rent 12 Office Equipment 13 Accumulated Depreciation-Office Equipment 14. Computer Equipment 15 Accumulated Depreciation-Computer Equipment Total Assets 17 Liabilities 18 Accounts Payable 19 Wages Payable 20 Unearned Computer Supplies Revenue 21 Total Liabilities Equity 23. Common Stock 24 Retained Earnings 25 Total Equity 26 Total Liabilities and Equity 27 \begin{tabular}{|r|} \hline \\ \hline 0 \\ \hline 0 \\ \hline 50 \\ \hline \\ \hline \\ \hline 0 \\ \hline \\ \hline 0 \\ \hline 50 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline No & Date & General Journal & Debit & Credit \\ \hline 1 & Dec. 31Adj. & & & \\ \hline & & & & \\ \hline 2 & Dec. 31Adj. & & \\ \hline & & & & \\ \hline 3 & Dec. 31Adj. & & \\ \hline & & & \\ \hline 4 & Dec. 31Adj. & & \\ \hline & & & \\ \hline & & & \\ \hline 5 & Dec. 31Adj. & & \\ \hline & & & \\ \hline 6 & Dec. 31Adj. & & \\ \hline & & & \\ \hline \end{tabular} Business Solutions Statement of Retained Earnings For the Three Months Ended December 31, 2021 Retained Earnings, October 1, 2021 Add: Net Income Less: Dividends Retained Earnings, December 31, 2021 $0 Business Solutions Income Statement For the Three Months Ended December 31, 2021 Revenue Computer Services Revenue Expenses 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 Total expenses Net Income Required 1. Prepare journal entries to record each of the December transactions and events for Business Solutions. (If no entry is required for a transaction/event, type "No journal entry required" in General Journal column.) Post those entries to the accounts in the ledger. 2. Prepare adjusting entries to reflect a through f. Post those 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 balance sheet as of December 31, 2021. 7. Record and post the necessary closing entries as of December 31, 2021. 8. Prepare a post-closing trial balance as of December 31, 2021. After the success of the company's first two months, Santana Rey continues to operate Business Solutions. Refer to Chapter 2 - Requirement 3 for the November 30 th unadjusted trial balance. Business Solutions had the following transactions and events in December 2021. December: 2 Paid $1,025 cash to Hiliside Mall for Business Solution's 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. 10 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 Solution's 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. 20 Completed a project for Llu Corporation and received $5,625 cash. 22-26 Took the week off for the holidays. 28 Recelved $3,000 cash from Gomez Co. on its recelvable. 29 Reimbursed S. Rey for business automobile mileage (600 miles at $0.32 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 explred since the 12 -month insurance premium was paid in advance. c. As of December 31, tyn 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 have expired. After the success of the company's first two months, Santana Rey continues to operate Business Solutions. Refer to Chapter 2 - Requirement 3 for the November 30 th unadjusted trial balance. Business Solutions had the following transactions and events in December 2021. December: 2 Paid $1,025 cash to Hillside Mall for Business Solution's 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. 10 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 Solution's 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. 20 Completed a project for Liu Corporation and received $5,625 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 $0.32 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 have expired. Chart of Accounts Business Solutions Balance Sheet December 31, 2021 6 Assets 7 Cash Accounts Receivable Computer Supplies Prepaid Insurance Prepaid Rent 12 Office Equipment 13 Accumulated Depreciation-Office Equipment 14. Computer Equipment 15 Accumulated Depreciation-Computer Equipment Total Assets 17 Liabilities 18 Accounts Payable 19 Wages Payable 20 Unearned Computer Supplies Revenue 21 Total Liabilities Equity 23. Common Stock 24 Retained Earnings 25 Total Equity 26 Total Liabilities and Equity 27 \begin{tabular}{|r|} \hline \\ \hline 0 \\ \hline 0 \\ \hline 50 \\ \hline \\ \hline \\ \hline 0 \\ \hline \\ \hline 0 \\ \hline 50 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline No & Date & General Journal & Debit & Credit \\ \hline 1 & Dec. 31Adj. & & & \\ \hline & & & & \\ \hline 2 & Dec. 31Adj. & & \\ \hline & & & & \\ \hline 3 & Dec. 31Adj. & & \\ \hline & & & \\ \hline 4 & Dec. 31Adj. & & \\ \hline & & & \\ \hline & & & \\ \hline 5 & Dec. 31Adj. & & \\ \hline & & & \\ \hline 6 & Dec. 31Adj. & & \\ \hline & & & \\ \hline \end{tabular} Business Solutions Statement of Retained Earnings For the Three Months Ended December 31, 2021 Retained Earnings, October 1, 2021 Add: Net Income Less: Dividends Retained Earnings, December 31, 2021 $0 Business Solutions Income Statement For the Three Months Ended December 31, 2021 Revenue Computer Services Revenue Expenses 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 Total expenses Net Income Required 1. Prepare journal entries to record each of the December transactions and events for Business Solutions. (If no entry is required for a transaction/event, type "No journal entry required" in General Journal column.) Post those entries to the accounts in the ledger. 2. Prepare adjusting entries to reflect a through f. Post those 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 balance sheet as of December 31, 2021. 7. Record and post the necessary closing entries as of December 31, 2021. 8. Prepare a post-closing trial balance as of December 31, 2021. After the success of the company's first two months, Santana Rey continues to operate Business Solutions. Refer to Chapter 2 - Requirement 3 for the November 30 th unadjusted trial balance. Business Solutions had the following transactions and events in December 2021. December: 2 Paid $1,025 cash to Hiliside Mall for Business Solution's 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. 10 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 Solution's 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. 20 Completed a project for Llu Corporation and received $5,625 cash. 22-26 Took the week off for the holidays. 28 Recelved $3,000 cash from Gomez Co. on its recelvable. 29 Reimbursed S. Rey for business automobile mileage (600 miles at $0.32 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 explred since the 12 -month insurance premium was paid in advance. c. As of December 31, tyn 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 have expired. After the success of the company's first two months, Santana Rey continues to operate Business Solutions. Refer to Chapter 2 - Requirement 3 for the November 30 th unadjusted trial balance. Business Solutions had the following transactions and events in December 2021. December: 2 Paid $1,025 cash to Hillside Mall for Business Solution's 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. 10 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 Solution's 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. 20 Completed a project for Liu Corporation and received $5,625 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 $0.32 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 have expired. Chart of Accounts