After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30, 2018, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2018) follows. Credit Debit $ 38,564 12,918 2,645 2,100 2,920 8,700 $ 0 20,000 No. 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 316 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 684 Repairs expense-Computer Totals 0 0 o 0 65,000 0 6,000 34,414 0 0 2,250 0 o 0 1,698 180 725 $ 99,414 $99,414 Business Solutions had the following transactions and events in December 2018. Dec. 2 Paid $1,015 cash to Hillside Mall for Business Solutions' share of mall advertising costs. 3 Paid $430 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 $7,000 on a proposed project has been accepted. Alex's paid a $1,900 cash advance to Business Solutions. 15 Purchased $2,000 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 $5,975 cash 22- Took the week oft for the holidays. 26 28 Received $3,600 cash from Gomez co. on its receivable. 29 Reimbursed S. Rey for business automobile mileage (600 miles at $0.28 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 $660 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 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 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, 2018 4. Prepare an income statement for the three months ended December 31, 2018 5. Prepare a statement of retained earnings for the three months ended December 31, 2018. 6. Prepare a balance sheet as of December 31, 2018. 7. Record and post the necessary closing entries as of December 31, 2018. 8. Prepare a post-closing trial balance as of December 31, 2018. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 2B Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Req 8 Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger. Cash Accounts Receivable Date Debit Credit Date Debit Credit Balance 1,015 430 Dec. 01 Dec. 04 Dec. 28 4,050 3,600 12,918 8,868 5,268 4,050 Dec. 01 Dec. 02 Dec. 03 Dec. 04 Dec. 10 Dec. 20 Dec 28 Dec. 29 Dec. 31 Balance 38,564 37,549 37,119 41,169 41,054 47.029 50,629 50,461 48,961 115 5,975 3,600 168 1,500 Computer Supplies Prepaid Insurance BUSINESS SOLUTIONS Adjusted Trial Balance December 31, 2018 Account Title 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 Uneamed computer services revenue Common stock Retained earnings Dividends Computer services revenue Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages exponse Insurance expense 3) Saved Reg 1 Reg 2A Reg 28 Reg 3 Reg 4 Reg 5 Req6 Reg 7 Reg 8 Prepare an income statement for the three months ended December 31, 2018. BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2018 Revenue Expenses Total expenses Prev 1 of 1 Next MacBook Pro Configure in: Extensions Preferences # $ % A - 2 3 & 7 4 5 6 8 9 0 W E R. T Y U 0 (SP-3) Saved 6. Prepare a balance sheet as of December 31, 2018. 7. Record and post the necessary closing entries as of December 31, 2018. 8. Prepare a post-closing trial balance as of December 31, 2018. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Req 2B Req3 Req 4 Reg 5 Reg 6 Reg 7 Reg 8 Prepare a statement of retained earnings for the three months ended December 31, 2018. BUSINESS SOLUTIONS Statement of Retained Earnings For Three Months Ended December 31, 2018 Retained earnings, October 1, 2018 -> 0 Retained earnings, December 31, 2018 $ 0 Prepare a balance sheet as of December 31, 2018. BUSINESS SOLUTIONS Balance Sheet December 31, 2018 Assets 0 0 0 Total Assets Liabilities 0 Total Liabilities Equity Total Liabilities and Equity $ 0 Prey 1 of 1 Next MacBook Pro figure os Extensions Preferer 5 # $ de & 7 N 3 4 5 6 8 9 W E R T Y U 0 Saved Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 2B Req3 Reg 4 Reg 5 Reg 6 Reg 7 SELLELE Reg 8 Record and post the necessary closing entries as of December 31, 2018. (If no entry is required for a transaction/event, select "N Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet