After the success of the companys first two months, Santana Rey continues to operate Business Solutions. The November 30, 2015, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2015) follows.

No.	Account Title	Debit			Credit
101	Cash	$	38,664
106	Accounts receivable		13,018
126	Computer supplies		2,545
128	Prepaid insurance		1,920
131	Prepaid rent		3,160
163	Office equipment		8,900
164	Accumulated depreciationOffice equipment				$	0
167	Computer equipment		23,600
168	Accumulated depreciationComputer equipment					0
201	Accounts payable					0
210	Wages payable					0
236	Unearned computer services revenue					0
307	Common stock					70,000
318	Retained earnings					0
319	Dividends		6,000
403	Computer services revenue					33,649
612	Depreciation expenseOffice equipment		0
613	Depreciation expenseComputer equipment		0
623	Wages expense		2,575
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	$	103,649		$	103,649

Business Solutions had the following transactions and events in December 2015.

Dec.	2	Paid $950 cash to Hillside Mall for Business Solutions share of mall advertising costs.
	3	Paid $470 cash for minor repairs to the companys computer.
	4	Received $4,650 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 $7,500 on a proposed project has been accepted. Alexs paid a $2,400 cash advance to Business Solutions.
	15	Purchased $1,300 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 $5,875 cash.
	2226	Took the week off for the holidays.
	28	Received $3,100 cash from Gomez Co. on its receivable.
	29	Reimbursed S. Rey for business automobile mileage (400 miles at $0.32 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 companys first three months:

a.	The December 31 inventory count of computer supplies shows $590 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 $120 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 has expired.

Required:
1.	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 entries to record each of the December transactions and events for Business Solutions.
Date	General Journal	Debit	Credit
Dec.2	Advertising Expense	$950
	Cash		$950
Dec.3	Repairs expenseComputer	$470
	Cash		$470
Dec.4	Cash	$4,650
	Accounts Receivable		$4,650
Dec.10	Wages expense	$720
	Cash		$720
Dec.14	Cash	$2,400
	Unearned computer services revenue		$2,400
Dec.15	Computer Supplies	$1,300
	Accounts Payable		$1,300
Dec.16	No journal entry required
Dec.20	Cash	$5,875
	Computer service revenue		$5,875
Dec.22 - 26	No journal entry required
Dec.28	Cash	$3,100
	Accounts Receivable		$3,100
Dec.29	Mileage expense	$128
	Cash		$128
Dec.31	Dividends	$1,100
	Cash		$1,100
Adjusting entries to reflect a through f.
Transaction	General Journal	Debit	Credit
a	Computer supplies expense	$710
	Computer Supplies		$710
b	Insurance expense	$480
	Prepaid Insurance		$480
c	Wages expense	$480
	Wages payable		$480
d	Depreciation expenseComputer equipment	$1,475
	Accumulated depreciationComputer equipment		$1,475
e	Depreciation expenseOffice equipment	$445
	Accumulated depreciationOffice equipment		$445
f	Rent expense	$2,370
	Prepaid Rent		$2,370

2.2	Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger.

DEBIT	CREDIT	Balance

CASH
ACCOUNTS RECIVEABLE
COMPUTER SUPPLIES
PREPAID INSURANCE
PREPAID RENT
OFFICE EQUIPMENT
ACCUMULATED DEPRECIATION- OFFICE EQUIPMENT
COMPUTER EQUIPMENT
ACCUMULATED DEPRECIATION- COMPUTER EQUPMENT
ACCOUNTS PAYABLE
WAGES PAYABLE
UNEARNED COMPUTER SERVICES REVENUE
COMMON STOCK
RETAINED EARNINGS
DIVIDENS
COMPUTER SERVICES REVENUE
DEPRECIATION EXPENSE- COMUTER EQUIPMENT
DEPRECIATION EXPENSE- OFFICE EQUIPMENT
INSURANCE EXPENSE
RENT EXPENSE
COMPUTER SUPPLIES EXPENSE
ADVERTISING EXPENSE
MILEAGE EXPENSE
MISC. EXPENSES
INCOME SUMMERY

3.	Prepare an adjusted trial balance as of December 31, 2015.

BUSINESS SOLUTIONS
Adjusted Trial Balance
December 31, 2015
Account Title	Debit	Credit
Cash
Accounts receivable
Computer supplies
Prepaid insurance
Prepaid rent
Office equipment
Accumulated depreciationOffice equipment
Computer equipment
Accumulated depreciationComputer equipment
Accounts payable
Wages payable
Unearned computer services revenue
Common stock
Retained earnings
Dividends
Computer services revenue
Depreciation expenseOffice equipment
Depreciation expenseComputer equipment
Wages expense
Insurance expense
Rent expense
Computer supplies expense
Advertising expense
Mileage expense
Miscellaneous expenses
Repairs expenseComputer
Totals

4.

Prepare an income statement for the three months ended December 31, 2015.

BUSINESS SOLUTIONS
Income Statement
For Three Months Ended December 31, 2015
Revenue
Computer services revenue
Expenses
Depreciation expenseOffice equipment
Depreciation expenseComputer equipment
Wages expense
Insurance expense
Rent expense
Computer supplies expense
Advertising expense
Mileage expense
Miscellaneous expenses
Repairs expenseComputer
Total expenses
Net income

5.

Prepare a statement of owners equity for the three months ended December 31, 2015..

BUSINESS SOLUTIONS
Statement of Retained Earnings
For Three Months Ended December 31, 2015
Retained earnings, October 1, 2015	$0
Add: Net income
	0
Less: Dividends
Retained earnings, December 31, 2015	$0

6.

Prepare a balance sheet as of December 31, 2015.

BUSINESS SOLUTIONS
Balance Sheet
December 31, 2015
Assets
Cash
Accounts receivable
Prepaid insurance
Prepaid rent
Computer supplies
Office equipment
Accumulated depreciationOffice equipment
Computer equipment
Accumulated depreciationComputer equipment
Total assets
Liabilities
Accounts payable
Wages payable
Unearned computer services revenue
Total liabilities
Equity
Common stock
Retained earnings
Total liabilities and equity

7.	Record and post the necessary closing entries for Business Solutions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Date		General Journal	Debit	Credit
Dec 31		Computer services revenue
		Income summary
Dec 31		Income summary
		Depreciation expenseOffice equipment
		Depreciation expenseComputer equipment
		Wages expense
		Insurance expense
		Rent expense
		Computer supplies expense

8.	Prepare a post-closing trial balance as of December 31, 2015.

BUSINESS SOLUTIONS
Post-Closing Trial Balance
December 31, 2015
Account Title	Debit	Credit
Cash
Accounts receivable
Computer supplies
Prepaid insurance
Prepaid rent
Office equipment
Accumulated depreciationOffice equipment
Computer equipment
Accumulated depreciationComputer equipment
Accounts payable
Wages payable
Unearned computer services revenue
Common stock
Retained earnings
Totals	$0	$0