After the success of the companys 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.

Business Solutions had the following transactions and events in December 2019.

Dec.	2		Paid $960 cash to Hillside Mall for Business Solutions share of mall advertising costs.
	3		Paid $480 cash for minor repairs to the companys computer.
	4		Received $4,050 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 $105 per day.
	14		Notified by Alexs Engineering Co. that Business Solutions bid of $7,400 on a proposed project has been accepted. Alexs paid a $1,700 cash advance to Business Solutions.
	15		Purchased $1,100 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 $3,600 cash from Gomez Co. on its receivable.
	29		Reimbursed S. Rey for business automobile mileage (500 miles at $0.30 per mile).
	31		The company paid $1,400 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.

1. The December 31 inventory count of computer supplies shows $670 still available.
2. Three months have expired since the 12-month insurance premium was paid in advance.
3. As of December 31, Lyn Addie has not been paid for four days of work at $105 per day.
4. The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.
5. The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.
6. 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 2B. 8. Prepare a post-closing trial balance as of December 2019.

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Credit Debit $ 39,164 12,818 2,645 2,220 3,080 8,000 0 21,600 No. 101 106 126 128 131 163 164 167 168 201 210 236 307 318 319 403 612 613 623 637 640 652 655 676 677 684 0 0 0 0 64,000 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 Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer Totals 5,700 36,944 0 0 2,350 0 0 1,698 664 240 765 $100,944 $100,944 Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3 Req 4 Req 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 Date Debit Credit Balance Dec. 01 12,818 8,768 960 Dec. 04 Dec. 28 4,050 3,600 480 5,168 4,050 Dec. 01 Dec. 02 Dec. 03 Dec. 04 Dec. 10 Dec. 14 Dec. 20 Dec. 28 Dec. 29 630 Balance 39,164 38,204 37,724 41,774 41,144 42,844 48,719 52,319 52,169 50,769 1,700 5,875 3,600 150 Dec. 31 1,400 126: Computer Supplies 128: Prepaid Insurance 126: Computer Supplies Debit Credit 128: Prepaid Insurance Debit Credit Date Balance Date Balance Dec. 01 2,645 Dec. 01 2,220 1,100 3,745 Dec 31 Adj. 555 1,665 Dec. 15 Dec 31 Adj. 3,075 670 131: Prepaid Rent Debit Credit 163: Office Equipment Debit Credit Date Balance Date Balance 8,000 Dec. 01 3,080 Dec. 01 Dec 31 Adj. 2,310 770 164: Accumulated Depreciation Office Equipment Date Debit Credit Balance 167: Computer Equipment Debit Credit Date Balance Dec. 01 0 Dec. 01 21,600 Dec 31 Adj. 400 400 168: Accumulated Depreciation-Computer Equipment Date Debit Credit Balance 201: Accounts Payable Debit Credit Date Balance Dec. 01 0 Dec. 01 0 Dec 31 Adj. 1,350 1,350 Dec. 15 1,100 1,100 210: Wages Payable Debit Credit Date Balance 236: Unearned Computer Services Revenue Date Debit Credit Balance Dec. 01 Dec. 01 0 0 Dec 31 Adj. 420 420 Dec. 14 1,700 1,700 307: Common Stock Debit Credit 318: Retained Earnings Debit Credit Date Balance Date Balance Dec. 01 64,000 Dec. 01 0 319: Dividends 403: Computer Services Revenue Debit Credit Date Debit Credit Date Balance Dec. 01 Dec. 01 36,944 Balance 5,700 7,100 0 1,400 Dec. 31 Dec. 31 Close 7,100 612: Depreciation Expense-Office Equipment Date Debit Credit Balance 613: Depreciation Expense-Computer Equipment Date Debit Credit Balance Dec. 01 0 Dec. 01 0 400 400 Dec 31 Adj. Dec. 31 Close 400 0 623: Wages Expense Debit Credit 637: Insurance Expense Debit Credit Date Balance Date Balance Dec. 01 2,350 Dec. 01 0 Dec. 10 630 Dec 31 Adj. 420 2,980 3,400 0 Dec. 31 Close 3,400 640: 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 Balance Date Balance Dec. 01 1,698 Dec. 01 664 677: Miscellaneous Expense Debit Credit 684: Repairs Expense-Computer Debit Credit Date Balance Date Balance Dec. 01 240 Dec. 01 765 677: Miscellaneous Expense Debit Credit 684: Repairs Expense-Computer Debit Credit Date Balance Date Balance Dec. 01 240 Dec. 01 765 901: Income Summary Date Debit Credit Balance BUSINESS SOLUTIONS Adjusted Trial Balance December 31, 2019 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 expense-Office equipment Depreciation expense-Computer equipment Wages expense Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expenseComputer Totals $ 0 $ 0 BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2019 Revenue Expenses Total expenses 0 BUSINESS SOLUTIONS Statement of Retained Earnings For Three Months Ended December 31, 2019 Retained earnings, October 1, 2019 0 Retained earnings, December 31, 2019 $ 0 Balance Sheet December 31, 2019 Assets 0 0 Total Assets 0 Liabilities Total Liabilities 0 Equity $ 0 Total equity Total Liabilities and Equity $ 0 Journal entry worksheet Close the revenue account(s). Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31 Record entry Clear entry View general journal Close the expense accounts. Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31 Journal entry worksheet