After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30, 2020, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2020) follows. No. Credit Debit $ 38,564 13,418 2,645 1,980 3,300 8,200 0 20,400 0 Account Title 101 Cash 106 Accounts receivable 126 Computer supplies 128 Prepaid insurance 131 Prepaid rent 163 office equipment 164 Accumulated depreciation office equipment 167 Computer equipment 168 Accumulated depreciation-Computer equipment 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue 307 Common stock 318 Retained earnings 319 Dividends 403 Computer services revenue 612 Depreciation expense-office equipment 613 Depreciation expense-Computer equipment 623 Wages expense 637 Insurance expense 640 Rent expense 652 Computer supplies expense 655 Advertising expense 676 Mileage expense 677 Miscellaneous expenses Repairs expense-Computer Totals 0 0 0 71,000 0 5,700 28,749 0 0 2,325 0 0 0 1,658 614 180 765 $ 99,749 $99,749 Business Solutions had the following transactions and events in December 2020. Dec. 2 Paid $940 cash to Hillside Mall for Business Solutions's share of mall advertising costs. 3 Paid $400 cash for minor repairs to the company's computer. 4 Received $4,150 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 $105 per day. 14 Notified by Alex's Engineering Co. that Business Solutions's bid of $7,700 on a proposed project has been accepted. Alex's paid a $2,000 cash advance to Business Solutions. 15 Purchased $1,600 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 $5,925 cash. 22- Took the week oft for the holidays. 26 28 Received $3,800 cash from Gomez Co. on its receivable. 29 Reimbursed S. Rey for business automobile mileage (500 miles at $0.32 per mile). 31 The company paid $1,400 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 $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 and events for Business Solutions. 2-a. Prepare adjusting entries to reflect a through 1. 2-b. Post the journal entries to record each of the December transactions from Requirement 1 and adjusting entries from Requirement 2A. After completing Requirement 7. post the closing entries to the general ledger accounts. 3. Prepare an adjusted trial balance as of December 31, 2020. 4. Prepare an income statement for the three months ended December 31, 2020. 5. Prepare a statement of retained earnings for the three months ended December 31, 2020. 6. Prepare a balance sheet as of December 31, 2020. 7. Record the necessary closing entries as of December 31, 2019 and then post the closing entries to the general ledger in Requirement 2B 8. Prepare a post-closing trial balance as of December 31, 2020, Journal entry worksheet Paid $400 cash for minor repairs to the company's computer. Note: Enter debits before credits. General Journal Debit Credit Date Dec 03 Record entry Clear entry View general journal Journal entry worksheet Received $4,150 cash from Alex's Engineering Co. for the receivable from November Note: Enter debits before credits. Date General Journal Debit Credit Dec 04 Record entry Clear entry View general journal Journal entry worksheet Three months have expired since the 12-month insurance premium was paid in advance. Note: Enter debits before credits. General Journal Transaction b. Debit Credit Record entry Clear entry View general journal Journal entry worksheet As of December 31, Lyn Addie has not been paid for four days of work at $105 per day. Note: Enter debits before credits. Transaction General Journal Debit Credit C. Record entry Clear entry View general journal Journal entry worksheet Three of the four months' prepaid rent have expired. Note: Enter debits before credits. Transaction General Journal Debit Credit f. Record entry Clear entry View general journal Post the journal entries to record each of the December transactions from Requirement 1 and adjusting entries from Requirement 2A. After comp Requirement 7, post the closing entries to the general ledger accounts. 101: Cash 106: Accounts Receivable Date Debit Credit Balance Date Debit Credit Balance Dec. 01 38,564 Dec. 01 13,418 3 126: Computer Supplies Debit Credit Date Dec, 01 Balance 2,645 128: Prepaid Insurance Debit Credit Date Dec. 01 Balance 1,980 131: Prepaid Rent Debit Credit Date 163: Office Equipment Debit Credit Date Balance 3,300 Balance Dec. 01 Dec. 01 8,200 164: Accumulated Depreciation-Office Equipment Date Debit Credit Balance Dec. 01 167: Computer Equipment Dehir Credit Date Balance 20,400 0 Dec. 01 168: Accumulated Depreciation-Computer Equipment Date Debit Credit Balance Dec, 01 201: Accounts Payable Debit Credit Date Balance 0 Dec. 01 0 210: Wages Payable Debit Credit 236: Unearned Computer Services Revenue Date Debit Credit Balance Date Balance Dec. 01 0 Dec. 01 0 307: Common Stock Debit Credit 318: Retained Earnings Debit Credit Date Date Balance Balance 71,000 Dec. 01 Dec. 01 0 319: Dividends Debit Credit 403: Computer Services Revenue Debit Credit Date Balance 5,700 Date Dec. 01 Balance 28,749 Dec. 01 612: Depreciation Expense-Office Equipment Date Debit Credit Balance Dec. 01 613: Depreciation Expense-Computer Equipment Date Debit Credit Balance Dec. 01 0 0 623: Wages Expense Debit Credit 637: Insurance Expense Debit Credit Date Balance Date Dec. 01 Balance 2,325 Dec. 01 0 640: Rent Expense Debit Credit 652: Computer Supplies Expense Debit Credit Date Balance Balance Date Dec. 01 Dec. 01 0 640: Rent Expense Debit Credit 652: Computer Supplies Expense Debit Credit Date Balance Date Balance Dec. 01 0 Dec, 01 0 655: Advertising Expense Debit Credit 676: Mileage Expense Debit Credit Date Date Dec. 01 Balance 1,658 Balance 614 Dec. 01 677: Miscellaneous Expense Debit Credit 684: Repairs Expense-Computer Debit Credit Date Dec. 01 Balance 180 Date Dec. 01 Balance 765 901: Income Summary Debit Credit Date Balance + Prepare an adjusted trial balance as of December 31, 2020. BUSINESS SOLUTIONS Adjusted Trial Balance December 31, 2020 Account Title Debit Credit Cash Accounts receivable Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciationOffice 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 Depreciation expense_Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expenseComputer Totals $ 0 $ o Prepare an income statement for the three months ended December 31, 2020. BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2020 Revenue Expenses Total expenses 0 Prepare a statement of retained earnings for the three months ended December 31, 2020. BUSINESS SOLUTIONS Statement of Retained Earnings For Three Months Ended December 31, 2020 Retained earnings, October 1, 2020 0 Retained earnings, December 31, 2020 $ 0 Prepare a balance sheet as of December 31, 2020. BUSINESS SOLUTIONS Balance Sheet December 31, 2020 Assets 0 0 Total Assets 0 Liabilities Total Liabilities 0 0 0 0 $ Total Assets Liabilities 0 Total Liabilities Equity Total equity Total Liabilities and Equity 0 Record the necessary closing entries as of December 31, 2019 and then post the closing entries to the general ledger in Requirement 2B. View transaction list Journal entry worksheet Record the closure of the dividend account. Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31 Prepare a post-closing trial balance as of December 31, 2020. BUSINESS SOLUTIONS Post-Closing Trial Balance December 31, 2020 Debit Credit 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 Totals $ 0 $ 0 After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30, 2020, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2020) follows. No. Credit Debit $ 38,564 13,418 2,645 1,980 3,300 8,200 0 20,400 0 Account Title 101 Cash 106 Accounts receivable 126 Computer supplies 128 Prepaid insurance 131 Prepaid rent 163 office equipment 164 Accumulated depreciation office equipment 167 Computer equipment 168 Accumulated depreciation-Computer equipment 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue 307 Common stock 318 Retained earnings 319 Dividends 403 Computer services revenue 612 Depreciation expense-office equipment 613 Depreciation expense-Computer equipment 623 Wages expense 637 Insurance expense 640 Rent expense 652 Computer supplies expense 655 Advertising expense 676 Mileage expense 677 Miscellaneous expenses Repairs expense-Computer Totals 0 0 0 71,000 0 5,700 28,749 0 0 2,325 0 0 0 1,658 614 180 765 $ 99,749 $99,749 Business Solutions had the following transactions and events in December 2020. Dec. 2 Paid $940 cash to Hillside Mall for Business Solutions's share of mall advertising costs. 3 Paid $400 cash for minor repairs to the company's computer. 4 Received $4,150 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 $105 per day. 14 Notified by Alex's Engineering Co. that Business Solutions's bid of $7,700 on a proposed project has been accepted. Alex's paid a $2,000 cash advance to Business Solutions. 15 Purchased $1,600 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 $5,925 cash. 22- Took the week oft for the holidays. 26 28 Received $3,800 cash from Gomez Co. on its receivable. 29 Reimbursed S. Rey for business automobile mileage (500 miles at $0.32 per mile). 31 The company paid $1,400 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 $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 and events for Business Solutions. 2-a. Prepare adjusting entries to reflect a through 1. 2-b. Post the journal entries to record each of the December transactions from Requirement 1 and adjusting entries from Requirement 2A. After completing Requirement 7. post the closing entries to the general ledger accounts. 3. Prepare an adjusted trial balance as of December 31, 2020. 4. Prepare an income statement for the three months ended December 31, 2020. 5. Prepare a statement of retained earnings for the three months ended December 31, 2020. 6. Prepare a balance sheet as of December 31, 2020. 7. Record the necessary closing entries as of December 31, 2019 and then post the closing entries to the general ledger in Requirement 2B 8. Prepare a post-closing trial balance as of December 31, 2020, Journal entry worksheet Paid $400 cash for minor repairs to the company's computer. Note: Enter debits before credits. General Journal Debit Credit Date Dec 03 Record entry Clear entry View general journal Journal entry worksheet Received $4,150 cash from Alex's Engineering Co. for the receivable from November Note: Enter debits before credits. Date General Journal Debit Credit Dec 04 Record entry Clear entry View general journal Journal entry worksheet Three months have expired since the 12-month insurance premium was paid in advance. Note: Enter debits before credits. General Journal Transaction b. Debit Credit Record entry Clear entry View general journal Journal entry worksheet As of December 31, Lyn Addie has not been paid for four days of work at $105 per day. Note: Enter debits before credits. Transaction General Journal Debit Credit C. Record entry Clear entry View general journal Journal entry worksheet Three of the four months' prepaid rent have expired. Note: Enter debits before credits. Transaction General Journal Debit Credit f. Record entry Clear entry View general journal Post the journal entries to record each of the December transactions from Requirement 1 and adjusting entries from Requirement 2A. After comp Requirement 7, post the closing entries to the general ledger accounts. 101: Cash 106: Accounts Receivable Date Debit Credit Balance Date Debit Credit Balance Dec. 01 38,564 Dec. 01 13,418 3 126: Computer Supplies Debit Credit Date Dec, 01 Balance 2,645 128: Prepaid Insurance Debit Credit Date Dec. 01 Balance 1,980 131: Prepaid Rent Debit Credit Date 163: Office Equipment Debit Credit Date Balance 3,300 Balance Dec. 01 Dec. 01 8,200 164: Accumulated Depreciation-Office Equipment Date Debit Credit Balance Dec. 01 167: Computer Equipment Dehir Credit Date Balance 20,400 0 Dec. 01 168: Accumulated Depreciation-Computer Equipment Date Debit Credit Balance Dec, 01 201: Accounts Payable Debit Credit Date Balance 0 Dec. 01 0 210: Wages Payable Debit Credit 236: Unearned Computer Services Revenue Date Debit Credit Balance Date Balance Dec. 01 0 Dec. 01 0 307: Common Stock Debit Credit 318: Retained Earnings Debit Credit Date Date Balance Balance 71,000 Dec. 01 Dec. 01 0 319: Dividends Debit Credit 403: Computer Services Revenue Debit Credit Date Balance 5,700 Date Dec. 01 Balance 28,749 Dec. 01 612: Depreciation Expense-Office Equipment Date Debit Credit Balance Dec. 01 613: Depreciation Expense-Computer Equipment Date Debit Credit Balance Dec. 01 0 0 623: Wages Expense Debit Credit 637: Insurance Expense Debit Credit Date Balance Date Dec. 01 Balance 2,325 Dec. 01 0 640: Rent Expense Debit Credit 652: Computer Supplies Expense Debit Credit Date Balance Balance Date Dec. 01 Dec. 01 0 640: Rent Expense Debit Credit 652: Computer Supplies Expense Debit Credit Date Balance Date Balance Dec. 01 0 Dec, 01 0 655: Advertising Expense Debit Credit 676: Mileage Expense Debit Credit Date Date Dec. 01 Balance 1,658 Balance 614 Dec. 01 677: Miscellaneous Expense Debit Credit 684: Repairs Expense-Computer Debit Credit Date Dec. 01 Balance 180 Date Dec. 01 Balance 765 901: Income Summary Debit Credit Date Balance + Prepare an adjusted trial balance as of December 31, 2020. BUSINESS SOLUTIONS Adjusted Trial Balance December 31, 2020 Account Title Debit Credit Cash Accounts receivable Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciationOffice 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 Depreciation expense_Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expenseComputer Totals $ 0 $ o Prepare an income statement for the three months ended December 31, 2020. BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2020 Revenue Expenses Total expenses 0 Prepare a statement of retained earnings for the three months ended December 31, 2020. BUSINESS SOLUTIONS Statement of Retained Earnings For Three Months Ended December 31, 2020 Retained earnings, October 1, 2020 0 Retained earnings, December 31, 2020 $ 0 Prepare a balance sheet as of December 31, 2020. BUSINESS SOLUTIONS Balance Sheet December 31, 2020 Assets 0 0 Total Assets 0 Liabilities Total Liabilities 0 0 0 0 $ Total Assets Liabilities 0 Total Liabilities Equity Total equity Total Liabilities and Equity 0 Record the necessary closing entries as of December 31, 2019 and then post the closing entries to the general ledger in Requirement 2B. View transaction list Journal entry worksheet Record the closure of the dividend account. Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31 Prepare a post-closing trial balance as of December 31, 2020. BUSINESS SOLUTIONS Post-Closing Trial Balance December 31, 2020 Debit Credit 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 Totals $ 0 $ 0