Check my work Serial Problem Business Solutions LO P1, P2, P3, P4, P5 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. $ 38,264 101 Cash Accounts receivable 106 12,618 2,545 2,220 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 126 128 131 3,300 8,000 163 164 0 167 20,000 0 168 0 201 210 C 0 236 Common stock 73,000 307 Retained earnings 318 0 Dividends 319 5,600 Computer services revenue Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense 25,659 403 0 612 0 613 623 2,625 637 Insurance expense 0 Rent expense 640 0 Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses 652 0 1,728 655 704 676 677 250 Repairs expense-Computer 684 805 expe 684 Repairs expense-Computer 805 98,659 $98,659 Totals Business Solutions had the following transactions and events in December 2017 Dec. 2 Paid $1,025 cash to Hillside Mall for Business Solutions' share of mall advertising costs 3 Paid $500 cash for minor repairs to the company's computer 4 Received $3,950 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 $125 per day. 14 Notified by Alex's Engineering Co. that Business Solutions' bid of $7,000 accepted. Alex's paid 15 Purchased $1,100 of computer supplies on credit from Harris Office Products proposed project has been on a a $1,500 cash advance to Business Solutions. November 8 16 Sent a reminder to Gomez Co. to pay the fee for services recorded on 20 Completed a project for Liu Corporation and received $5,625 cash 22-26 Took the week off for the holidays. 28 Received $3,000 cash from Gomez Co. 29 Reimbursed S. Rey for business automobile mileage (600 miles at $0.32 per mile). 31 The company paid $1,500 cash in dividends. on its receivable. 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 $580 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 $125 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. 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 retained earnings for the three months ended December 31, 2017. 6. Prepare a balance sheet as of December 31, 2017. 7. Record and post the necessary closing entries as of December 31, 2017 8. Prepare a post-closing trial balance as of December 31, 2017. Complete this question by entering your answers in the tabs below. Req 5 Req 6 Req 7 Req 8 Req 1 Req 2A Req 2B Req 3 Req 4 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.) View transaction list Journal entry worksheet > 2 3 6 7 11 1 4 5 8 O View transaction list Journal entry worksheet 7 1 2 3 4 5 6 8 11 Paid $1,025 cash to Hillside Mall for Business Solutions' share of mall advertising costs. Note: Enter debits before credits. Date General Journal Credit Debit Dec 02 Record entry Clear entry View general journal LO
