After the success of the company's 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. Account Title Debit Credit No 101 Cash 106 Accounts receivable 126 Computer supplies 128 Prepaid insurance 131 Prepaid rent 163 office equipment $ 39,164 13,118 2,645 1,980 3,120 8,300 Accumulated depreciation-office 164 equipment 167 Computer equipment 23,200 Accumulated depreciation-Computer 168 equipmen 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue 307 Common stock 318 Retained earnings 319 Dividends 403 Computer services revenue 612 Depreciation expense office equipment 71,000 6,400 32,689 0 Depreciation expense computer equipment 2,375 623 Wages expense 637 Insurance expense 640 Rent expense 652 Computer supplies expense 655 Advertising expense 676 Mileage expense 1,688 674 240 785 677 Miscellaneous expenses 684 Repairs expense-Computer 785 PepeseCOmputer Totals $103,689 $103,689 Business Solutions had the following transactions and events in December 2017 Dec. 2 Paid s940 cash to Hillside Mall for Business solutions' share of mall advertising costs. 3 Paid $480 cash for minor repairs to the company's computer. 4 Received $4,350 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 $7,5e0 on a proposed project has been accepted. Alex's paid a $2,400 cash advance to Business solutions. 15 Purchased $1,400 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 $5,925 cash. 22 Took the week off for the holidays. -26 28 Received $3,980 cash from Gomez Co. on its receivable. 29 Reimbursed S. Rey for business automobile mileage (500 miles at se.28 per mile). 31 The company paid $1,000 cash in dividends. The following additional facts are collected for use in making adusting entries prior to preparing financial stotements for the company's first three months: o. The December 31 inventory count of computer supplies shows $670 stilt 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 $115 per day d. The computer system, acquired on October t, is expected to have a four yeor life with no salvage value e. The office equipment, acquired on October 1. is expected to have a tive yeor life with no salvage value t. Three of the four months' prepaid rent has expired Required BUSINESS SOLUTIONS Adjusted Trial Balance December 31, 2017 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 Uneaned 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 Req1 Req 2A Req 2B Req 3 Req 4 Req Req 6 Req 7 Req 8 Prepare an income statement for the three months ended December 31, 2017. BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2017 Revenue Expenses Total expenses LBMplete this question by entering your answers in the tabs below. Req 5 Req 6 Prepare a statement of retained earnings for the three months ended December 31, 2017. BUSINESS SOLUTIONS Statement of Retained Earnings For Three Months Ended December 31, 2017 Retained earnings, October 1,2017 Retained earnings, December 31, 2017 BUSINESS SOLUTIONS Balance Sheet December 31, 2017 Assets 0 Total Assets 0 Liabilities Total Liabilities 0 Equity Total Liabilities and Equity 0 Journal entry worksheet Record the revenue account. Note: Enter debits before credits. General Journal Debit Credit Date Dec. 31 Record entry Clear entry View general journal Journal entry worksheet 2 4 Record the expense accounts Note: Enter debits before credits. Debit Credit Date General Journal Dec. 31 Record entry Clear entry View general journal Journal entry worksheet Record the Income Summary account Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31 Record entry Clear entry View general journal Journal entry worksheet Record the dividends account. Note: Enter debits before credits Date General Journal Debit Credit Dec. 31 Record entry Clear entry View general journal