After the success of the companys first two months, Santana Rey continues to operate Business Solutions. The November 30, 2017, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2017) follows.

No.	Account Title	Debit			Credit
101	Cash	$	38,364
106	Accounts receivable		13,318
126	Computer supplies		2,545
128	Prepaid insurance		1,920
131	Prepaid rent		2,980
163	Office equipment		8,600
164	Accumulated depreciationOffice equipment				$	0
167	Computer equipment		21,600
168	Accumulated depreciationComputer equipment					0
201	Accounts payable					0
210	Wages payable					0
236	Unearned computer services revenue					0
301	S. Rey, Capital					63,000
302	S. Rey, Withdrawals		6,400
403	Computer services revenue					38,169
612	Depreciation expenseOffice equipment		0
613	Depreciation expenseComputer equipment		0
623	Wages expense		2,175
637	Insurance expense		0
640	Rent expense		0
652	Computer supplies expense		0
655	Advertising expense		1,678
676	Mileage expense		684
677	Miscellaneous expenses		190
684	Repairs expenseComputer		715
	Totals	$	101,169		$	101,169

Business Solutions had the following transactions and events in December 2017.

Dec.	2		Paid $1,015 cash to Hillside Mall for Business Solutions share of mall advertising costs.
	3		Paid $400 cash for minor repairs to the companys computer.
	4		Received $4,950 cash from Alexs Engineering Co. for the receivable from November.
	10		Paid cash to Lyn Addie for six days of work at the rate of $120 per day.
	14		Notified by Alexs Engineering Co. that Business Solutions bid of $7,300 on a proposed project has been accepted. Alexs paid a $1,900 cash advance to Business Solutions.
	15		Purchased $1,200 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 $6,425 cash.
	2226		Took the week off for the holidays.
	28		Received $3,800 cash from Gomez Co. on its receivable.
	29		Reimbursed S. Rey for business automobile mileage (600 miles at $0.29 per mile).
	31		S. Rey withdrew $1,500 cash from the company for personal use.

The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the companys first three months:

The December 31 inventory count of computer supplies shows $580 still available.

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 $120 per day.

The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.

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.

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, 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 owners equity for the three months ended December 31, 2017. 6. Prepare a balance sheet as of December 31, 2017.

Reference links

Complete this question by entering your answers in the tabs below.

Req 1

Req 2A

Req 2B

Req 3

Req 4

Req 5

Req 6

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.)

Journal entry worksheet

Transaction Index :

.....

Paid $1,015 cash to Hillside Mall for Business Solutions' share of mall advertising costs.

Paid $400 cash for minor repairs to the companys computer.

Received $4,950 cash from Alexs Engineering Co. for the receivable from November.

Paid cash to Lyn Addie for six days of work at the rate of $120 per day.

Notified by Alex's Engineering Co. that Business Solutions' bid of $7,300 on a proposed project has been accepted. Alexs paid a $1,900 cash advance to Business Solutions.

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.

Completed a project for Liu Corporation and received $6,425 cash.

Received $3,800 cash from Gomez Co. on its receivable.

Reimbursed S. Rey for business automobile mileage (600 miles at $0.29000000000000004 per mile).

S. Rey withdrew $1,500 cash from the company for personal use.

Note: Enter debits before credits.

Date

General Journal

Debit

Credit

Dec 02

+Journal entry worksheet

Transaction Index :

The December 31 inventory count of computer supplies shows $580 still available.

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 $120 per day.

The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.

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.

Note: Enter debits before credits.

Transaction

General Journal

Debit

Credit

b.

+

Choose your template

FPOspreadsheet

FPOgeneral journal

FPO

101: Cash

106: Accounts receivable

126: Computer supplies

128: Prepaid insurance

Journal entry worksheet

Transaction Index :

The December 31 inventory count of computer supplies shows $580 still available.

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 $120 per day.

The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.

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.

Note: Enter debits before credits.

Transaction

General Journal

Debit

Credit

c.

+

Choose your template

FPOspreadsheet

FPOgeneral journal

FPO

101: Cash

106: Accounts receivable

126: Computer supplies

128: Prepaid insurance

131: Prepaid rent

163: Office equipment

Journal entry worksheet

Transaction Index :

The December 31 inventory count of computer supplies shows $580 still available.

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 $120 per day.

The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.

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.

Note: Enter debits before credits.

Transaction

General Journal

Debit

Credit

d.

+

Choose your template

FPOspreadsheet

FPOgeneral journal

FPO

101: Cash

106: Accounts receivable

126: Computer supplies

128: Prepaid insurance

131: Prepaid rent

163: Office equipment

Journal entry worksheet

Transaction Index :

The December 31 inventory count of computer supplies shows $580 still available.

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 $120 per day.

The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.

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.

Note: Enter debits before credits.

Transaction

General Journal

Debit

Credit

d.

+

Choose your template

FPOspreadsheet

FPOgeneral journal

FPO

101: Cash

106: Accounts receivable

126: Computer supplies

128: Prepaid insurance

131: Prepaid rent

163: Office equipment

Journal entry worksheet

Transaction Index :

The December 31 inventory count of computer supplies shows $580 still available.

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 $120 per day.

The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.

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.

Note: Enter debits before credits.

Transaction

General Journal

Debit

Credit

f.

+

Choose your template

FPOspreadsheet

FPOgeneral journal

FPO

101: Cash

106: Accounts receivable

126: Computer supplies

128: Prepaid insurance

Company	Net Income	Net Sales	Profit Margin (%)
a.	$5,087	$44,620
b.	84,983	397,118
c.	90,034	254,334
d.	56,556	1,450,150
e.	71,414	432,814Use the following information to compute profit margin for each separate company a through e. (Round your answers to 1 decimal place.)Which of the five companies is the most profitable according to the profit margin ratio? Company a Company b Company c Company d Company e