After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30, 2018 unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2018) follows. Credit NO Debit $ 38,764 13,118 2.5.45 2,160 2.ee 8, see 101 106 126 128 131 163 164 167 168 201 210 236 $ 0 20,400 307 Car 70,000 318 319 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 5,800 29,564 612 613 623 wa 2,150 637 640 652 1,648 614 655 676 677 684 715 $ 99,564 599,564 Business Solutions had the following transactions and events in December 2018 Dec. 2 Paid $1,010 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 $4,85e 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 $120 per day. 14 Notified by Alex's Engineering Co. that Business Solutions bid of $7,000 on a proposed project has been accepted. Alex's paid a $2,300 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. 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 $5,975 cash. 22- Took the week off for the holidays. 26 28 Received $4,600 cash from Gomez Co. on its receivable. 29 Reimbursed S. Rey for business automobile mileage (500 miles at $0.26 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 $670 still available. b. Three months have expired since the 12-month insurance premium was paid in advance. c. As of December 31, Lyy Addie has not been paid for four days of work at $120 per day. d. The computer system hcquired 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. 1. 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, adjusting entries to the accounts in the ledger 3. Prepare an adjusted trial balance as of December 31, 2018 4. Prepare an income statement for the three months ended December 31, 2018 5. Prepare a statement of retained earnings for the three months ended December 31, 2018 6. Prepare a balance sheet as of December 31, 2018 7. Record and post the necessary closing entries as of December 31, 2018 8. Prepare a post-closing trial balance as of December 31, 2018. No General Journal Credit Date Dec 02 Debit 1,010 Advertising expense Cash 1,010 2 Dec 03 Repairs expense-Computer Cash 3 Dec 04 4,850 Cash Accounts receivable 4,850 Dec 10 120 Wages expense Cash 120 Dec 14 Cash Unearned computer services revenue 2,300 2,300 6 Dec 15 Computer supplies Accounts payable 2,000 2,000 Dec 16 No journal entry required Dec 20 Cash Computer services revenue 5,975 5,975 Dec 28 Cash 4,000 Accounts receivable 4,000 10 Dec 29 Mileage expense Cash 1,320 Accounts receivable 4,850 4 | Dec 10 120 Wages expense Cash 15 Dec 14 2,300 Cash Unearned computer services revenue 2,300 Dec 15 2.000 Computer supplies Accounts payable 2,000 7 Dec 16 No journal entry required 8 Dec 20 5,975 Cash Computer services revenue 5,975 Dec 28 Cash Accounts receivable 4,000 4,000 10 Dec 29 Mileage expense Cash 1,320 130 Dec 31 Dividends 1,300 Cash 1,300 View transaction list View journal entry worksheet Transaction Credit No 1 General Journal Computer supplies expense Computer supplies Debit 670 540 Insurance expense Prepaid insurance 540 Wages expense Wages payable 480 480 Depreciation expense-Computer equipment Accumulated depreciation Computer equipment 1,700 1,700 an Depreciation expense Office equipment Accumulated depreciation Office equipment 567 567 Rent expense Prepaid rent 2,175 2,175 Cash Accounts Receivable Debit Credit Debit Credit Date Dec. 01 Dec. 04 Dec. 28 Balance 13,118 8,268 4,268 1,010 410 4,850 4,000 M T 4,850 Date Dec. 01 Dec. 02 Dec. 03 Dec. 04 Dec. 10 Dec. 14 Dec. 20 Dec. 28 Dec. 29 Dec. 31 120 Balance 38,764 37,754 37,344 42,194 42,074 44,374 50,349 54,349 53,029 51,729 5 2,300 ,975 975 4,000 1,320 1,300 Computer Supplies Debit Credit Prepaid Insurance Debit Credit Date Dec. 01 Dec. 15 Balance 2,545 4,545 Date Dec. 01 Balance 2,160 2,000 Dec 01 [ 5401 1,620 Prepaid Rent Debit Credit Date Dec. 01 Dec. 01 Office Equipment Debit Credit Balance 2,900 725 Date Dec. 01 Balance 8,500 2,175 Accumulated Depreciation Office Equipment Date Debit Credit Balance Inen n1 Date Computer Equipment Debit Credit Balance Prepaid Rent Debit Credit Office Equipment Debit Credit Date Dec. 01 Dec. 01 Balance 2,900 725 Date Dec. 01 Balance 8,500 2,175 Computer Equipment Debit Credit Accumulated Depreciation-Office Equipment Date Debit Credit Balance Dec. 01 Dec. 01 1 567 Date Dec. 01 Dec. 01 Balance 20,400 Accumulated Depreciation-Computer Equipment Date Debit Credit Balance Dec. 01 Accounts Payable Debit Credit Balance Date Dec. 01 Wages Payable Debit Credit Unearned Computer Services Revenue Debit Credit Balance Balance Date Dec. 01 Date Dec. 01 Common Stock Debit Credit Retained Earnings Debit Credit Balance Date Dec. 01 Balance 70,000 Date Dec. 01 Dividends Debit Credit Date Dec. 01 Computer Services Revenue Debit Credit Balance 5,800 Date Dec. 01 Balance 29,564 Depreciation Expense-Office Equipment Date Debit Credit Balance Dec. 01 Depreciation Expense-Computer Equipment Date Debit Credit Balance Dec. 01 Wages Expense Debit Credit Date Dec. 01 Date Insurance Expense Debit Debit Credit Balance 2,150 Balance Dec. 01 Rent Expense Debit Credit Date Balance Computer Supplies Expense Debit Credit Date Balance Rent Expense Debit Credit Computer Supplies Expense Debit Credit Balance Balance Date Dec. 01 Date Dec. 01 0 Advertising Expense Debit Credit Mileage Expense Debit Credit Date Balance Balance 1,648 Date Dec. 01 Dec. 01 Miscellaneous Expense Debit Credit Repairs Expense-Computer Debit Credit Date Dec. 01 Balance Date Dec. 01 Balance Income Summary Debit Credit Date Balance