After the success of the company's first two months, Santana Rey continues to operate Business Solutions. unadjusted trial balance of Business Solutions The November 30, 2017, (reflecting Its transactions for October and November of 2017) follows. ACCount Title Debit $ 39,164 13,4 No. Credit 1e1 Cash 186 ACCO receivable utar lies Prepaid insurance Prepaid rent office equipment Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation-Computer 128 2,1ee 131 3,220 8,300 S 163 164 167 22,400 168 equipment le 21e payable wages unearned computer services revenue Common stock Retained earnings 236 e 307 68,eee 318 319 Dividends 5,7e0 403 Computer services revenue 34,629 recian Expense-oace quiment ipment e Depra expense-Computer eq 623 wages expense 2,475 637 Insurance expense 648 Rent expense 652 Computer supplies expense Advertising expense Mileage expense 655 1,718 676 03- ste e Expenses Repairs expense-Computer Totals 684 745 $102,629 $102,629 Business Solutions had the following transactions and events In December 2017 Dec. Paid $1,025 cash to Hillside Mall for Business Solutions' share of mall advertising costs. for minor repairs to the company's computer. Paid $46e cash 4 Received $4,15e cash from Alex's Engineer cash to Lyn Addie for six days of work at the receivable from NOvember, 1e Paid 14 Notified by Alex's Engineering Co. that Business Solutions' bid of $7,1ee on a proposed project has been accepted. Alex's paid a $1,7ee cash advance to Business Solutions. 15 Purchased $1,20e of computer supplies on credit from Harris office Products. of $115 per day. reminder to Gomez Co. to pay the fee for services recorded on November 8 Liu Corporation and received $6,375 cash. 16 Sent 2e Completed a project for 22- Took the week off for the holidays. 26 28 Received 29 Reimbursed S. Rey for business automobile mileage (600 miles at se.22 per mile). 31 The company paid $1,2ee $3,80e cash from Gomez Co. on its receivable. cash in dividends. The following additional facts are collected for use in making adjusting entries prior to preparing financial company's first three months: statements for the a. The December 31 inventory count of computer supplies b. Three months have expired since the 12-month Insurance premium was pald In advance. c. As of December 31, Lyn Addle 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 shows $680 still available. has not been pald for four days of work at $115 per day The following additional facts are collected for use in making adjusting entrles prlor to preparing financial statements for the company's first three months: a. The December 31 Inventory count of computer supplies shows $680 still available. b. Three months have explred since the 12-month Insurance premlum was pald In advance. C. As of December 31, Lyn Addle has not been pald for four days of work at $115 per day. d. The computer system, acquired on October 1, 1s 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' prepald rent has expired. Required: 1. Prepare journal entries to record each of the December transactions and events for BusIness Solutions 2-e. 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 Paid $1,025 cash to Hillside Mall for Business Solutions share of mall advertising costs. 1 M Paid $460 cash for minor repairs to the company's computer. Received $4,150 cash from Alex's Engineering Co. for the 3 receivable from November. Paid cash to Lyn Addie for six days of work at the rate of $115 per day. 5 Notified by Alex's Engineering Co. that Business Solutions bid of $7,100 on a proposed project has been accepted. Alex's paid a $1,700 cash advance to Business I -- journal entry has been entered Note: 5 Notified by Alex's Engineering Co. that Business Solutions' bid of $7,100 on a proposed project has been accepted. Alex's paid a $1,700 cash advance to Business Solutions. 6 Purchased $1,200 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. 7 Completed a project for Liu Corporation and received $6.375 cash. Received $3,800 cash from Gomez Co. on its receivable. Note : journal entry has been entered 6 Purchased $1,200 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 7 8 Completed a project for Liu Corporation and received $6,375 cash. Cre 9 Received $3,800 cash from Gomez Co. on its receivable. 10 Reimbursed S. Rey for business automobile mileage (600 miles at $0.22000000000000003 per mile). 11 The company paid $1,200 cash in dividends. Note: journal entry has been entered 1 The December 31 inventory count of computer supplies shows $680 still available. 2 Three months have expired since the 12-month insurance premium was paid in advance. As of December 31, Lyn Addie has not been paid for four days of work at $115 per day. it The computer system, acquired on October 1, is expected to have a four-year life with no salvage value. 4 5 The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value. Three of the four months prepaid rent has expired. journal entry has been entered Note : 1