After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30, 2019, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2019) follows. Credit No. 101 106 126 128 131 163 164 167 168 201 210 236 Debit $ 38,264 12,618 2,545 2,220 3,100 8,700 $ 0 20,400 0 0 0 0 64,000 0 307 Account Title 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 Dividends Computer services revenue 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 Totals 318 319 6,000 35,284 403 612 613 623 637 640 652 655 676 677 684 0 0 2,150 D 0 0 1,708 654 160 765 $ 99,284 $99,284 Business Solutions had the following transactions and events in December 2019. Dec. 2 Paid $995 cash to Hillside Mall for Business Solutions' share of mall advertising costs. 3 Paid $410 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 $110 per day. 14 Notified by Alex's Engineering Co. that Business Solutions bid of $7,400 on a proposed project has been accepted. Alex's paid a $1,600 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 $6,175 cash. 22- Took the week off for the holidays. 26 28 Received $3,700 cash from Gomez Co. on its receivable. 29 Reimbursed S. Rey for business automobile mileage (600 miles at $0.30 per mile). 31 The company paid $1,300 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 $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. 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 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, 2019. 4. Prepare an income statement for the three months ended December 31, 2019. 5. Prepare a statement of retained earnings for the three months ended December 31, 2019. 6. Prepare a balance sheet as of December 31, 2019. 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, 2019, Prepare journal entries to record each of the December transactions and events for Business Solutions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 11 Prepare adjusting entries to reflect a through f. View transaction list Journal entry worksheet 1 2 3 4 5 6 Reg 1 Reg 2 Reg 20 Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 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. 106: Accounts 101: Cash Receivable Date Debit CreditBalance Date Debit CreditBalan Dec Dec. 01 38,264 101 12,61 126: Computer Supplies 128: Prepaid Insurance Date Debit CreditBalance Date Debit CreditBalan Dec. Dec. 01 2,545 2,220 101 131: Prepaid Rent 163: Office Equipment Date Debit CreditBalance Date Debit CreditBalan Dec. Dec. 01 3,100 8.700 101 164: Accumulated Depreciation-Office 167: Computer Equipment Equipment Date Debit Credi Balance Date Debit CreditBalan Dec. 01 Dec. 0 20,40 101 168: Accumulated Depreciation Computer 201: Accounts Payable Equipment Date Debit Credi Balande Date Debit CreditBalan Dec Dec. 01 ol 0 01 236: Unearned 210: Wages Payable Computer Services Revenue Date Debit CreditBalance Date Debit CreditBalan Dec. 01 0 Dec 0 JO1 307: Common Stock 318: Retained Earnings Date Debit CreditBalande Date Debit CreditBalan Dec Dec. 01 0 64,000 01 319: Dividends 403: Computer Services Revenue Date Debit CreditBalance Date Debit CrediBalan Dec. 01 6.000 Dec. 01 35,28 12: Denreclat 612: Depreciation 613: Depreciation Expense-Office Expense-Computer Equipment Equipment Date Debit CreditBalance Date Debit CreditBalan Dec. 01 ol Dec. lo1 0 623: Wages Expense 637: Insurance Expense Date Debit CreditBalance Date Debit CreditBalan Dec. Dec. 01 2,150 0 101 640: Rent Expense 652: Computer Supplies Expense Date Debit CreditBalance Date Debit CreditBalan Dec. 01 Dec 0 101 655: Advertising Expense 676: Mileage Expense Date Debit CreditBalance Date Debit CreditBalan Dec. Dec. 01 1,708 101 654 677: Miscellaneous 684: Repairs Expense Expense Computer Date Debit CreditBalance Date Debit CreditBalan Dec. Dec. 01 160 101 765 901: Income Summary Date Debit CreditBalance BAR Prepare an adjusted trial balance as of December 31, 2019. BUSINESS SOLUTIONS Adjusted Trial Balance December 31, 2019 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 Unearned computer services revenue Common stock Retained earnings Dividends Computer services revenue 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 Totals Prepare an income statement for the three months ended December 31, 2019. BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2019 Revenue Expenses Total expenses Prepare a statement of retained earnings for the three months ended December 31, 2019. BUSINESS SOLUTIONS Statement of Retained Earnings For Three Months Ended December 31, 2019 Retained earnings, October 1, 2019 Retained earnings, December 31, 2019 Prepare a balance sheet as of December 31, 2019. BUSINESS SOLUTIONS Balance Sheet December 31, 2019 Assets Total Assets Liabilities Total Liabilities Equity Total equity Total Liabilities and Equity Record the necessary closing entries as of December 31, 2019 and then post the closing entries to the general ledger in Requirement 28. View transaction list Journal entry worksheet 1 2 3 4 Req 1 Req 2A Reg 2B Req3 Req 4 Reg 5 Reg 6 Req 7 Req 8 Prepare a post-closing trial balance as of December 31, 2019. Credit BUSINESS SOLUTIONS Post-Closing Trial Balance December 31, 2019 Debit 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