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 Debit $ 38,264 13,318 2,545 2,220 3,100 9,000 $ 20,400 No. 101 106 126 128 128 131 131 162 163 162 164 167 168 201 210 236 307 318 300 319 2013 403 612 613 623 637 640 652 655 676 677 684 63,000 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 Depu Depreciation expense-Computer equipment Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer Totals 6,500 38, 114 Wages expense 2,450 0 0 1,688 694 220 715 $ 101,114 $ 101,114 Business Solutions had the following transactions and events in December 2019. Dec. 2 Paid $940 cash to Hillside Mall for Business Solutions' share of mall advertising costs. 3 Paid $470 cash for minor repairs to the company's computer. 4 Received $4,550 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 $7,600 on a proposed project has been accepted. Alex's paid a $1,600 cash advance to Business Solutions. 15 Purchased $1,900 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 $6,125 cash. 22- Took the week off for the holidays. 26 28 Received $3,600 cash from Gomez Co. on its receivable. 29 Reimbursed S. Rey for business automobile mileage (400 miles at $0.25 per mile). 31 The company paid $1,100 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 $610 still available. b. Three months have expired since the 12-month insurance premium was paid in advance. 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 f. 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 28. 8. Prepare a post-closing trial balance as of December 31, 2019. Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Req 2B Req3 Req 4 Reg 5 Reg 6 Req 7 Req 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. 101: Cash 106: Accounts Receivable Date Debit Credit Balance Date Debit Credit Balance Dec. 01 38,264 13,318 Dec. 01 Dec. 04 Dec 28 Dec. 02 Dec. 03 Dec 04 Dec. 10 Dec. 14 Dec 20 Dec. 28 Dec. 29 Dec. 31 126: Computer Supplies Debit Credit 128: Prepaid Insurance Debit Credit Date Balance Date Dec. 01 Balance 2.220 Dec. 01 2,545 Prev 1 of 1 Next > 101: Cash 106: Accounts Receivable Date Debit Credit Balance Date Debit Credit Balance 38,264 Dec. 01 13,318 Dec. 01 Dec 02 Dec. 04 Dec. 03 Dec. 28 Dec. 04 Dec. 10 Dec. 14 Dec. 20 Dec. 28 Dec. 29 Dec. 31 126: Computer Supplies Debit Credit 128: Prepaid Insurance Debit Credit Date Balance Date Balance 2,220 Dec. 01 2,545 Dec 01 131: Prepaid Rent Debit Credit 163: Office Equipment Debit Credit Date Balance Date Balance Dec. 01 3,100 Dec 01 9,000 164: Accumulated Depreciation Office Equipment Date Debit Credit Balance Dec 01 167: Computer Equipment Debit Credit Date Balance 20,400 0 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 Date Balance Balance Dec. 01 0 Dec. 01 0 307: Common Stock Debit Credit 318: Retained Earnings Debit Credit Date Balance Date Dec. 01 Balance 63,000 Dec. 01 0 319: Dividends Debit Credit 403: Computer Services Revenue Debit Credit Date Balance Date Balance 38, 114 Dec. 01 6,500 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 Balance Dec. 01 2,450 Dec. 01 0 640: Rent Expense Debit Credit 652: Computer Supplies Expense Debit Credit Date Balance Date Balance Dec. 01 0 Dec. 01 623: Wages Expense Debit Credit 637: Insurance Expense Debit Credit Date Balance Date Balance Dec. 01 2,450 Dec. 01 0 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 Dec. 01 Balance 1,688 Date Dec. 01 Balance 694 677: Miscellaneous Expense Debit Credit 684: Repairs Expense-Computer Debit Credit Date Balance Date Balance 715 Dec. 01 220 Dec. 01 901: Income Summary Debit Credit Date Balance 2 20 5 2 Rey 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 $ 0 $ 0 Complete this question by entering your answers in the tabs below. Req 1 Req 2A Reg 2B Reg 3 Reg 4 Req 5 Reg 6 Reg 7 Reg 8 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 0 Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req3 Reg 4 Reg 5 Reg 6 Reg 7 Req 8 Prepare a balance sheet as of December 31, 2019. BUSINESS SOLUTIONS Balance Sheet December 31, 2019 Assets 0 0 Total Assets 0 Liabilities Total Liabilities 0 Equity Total equity $ 0 Total Liabilities and Equity $ 0