Credit No. 101 126 Debit $ 39,064 13,118 2,645 2,220 3,100 8,500 o 128 131 163 164 167 168 201 210 22,800 o ooo 236 Unean 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 72,000 0 6,300 31,289 0 307 318 319 403 612 613 623 637 640 652 655 676 677 684 2,225 Oo 1,678 694 210 735 $ 103,289 $103,289 Business Solutions had the following transactions and events in December 2019. Dec. 2 Paid $950 cash to Hillside Mall for Business Solutions' share of mall advertising costs. 3 Paid $450 cash for minor repairs to the company's computer. 4 Received $4,450 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 $7,000 on a proposed project has been accepted. Alex's paid a $2,500 cash advance to Business Solutions. 15 Purchased $1,900 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 $5,625 cash. 22- Took the week off for the holidays. 26 28 Received $3,000 cash from Gomez Co. on its receivable. 29 Reimbursed s. Rey for business automobile mileage (500 miles at $0.31 per mile). 31 The company paid $1,000 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 $640 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 $115 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 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, 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 and post the necessary closing entries as of December 31, 2019. 8. Prepare a post-closing trial balance as of December 31, 2019. Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger. 101: Cash 106: Accounts Receivable Debit Credit Debit Debit Credit Date Dec. 01 Balance 39,064 Date Dec. 01 Balance 13,118 126: Computer Supplies Debit Credit 128: Prepaid Insurance Debit Credit Date Dec. 01 Balance 2,645 Date Dec. 01 Balance 2,220 131: Prepaid Rent Debit Credit 163: Office Equipment Debit Credit Date Dec. 01 Balance 3,100 Date Dec. 01 Balance 8,500 164: Accumulated Depreciation Office Equipment Date Debit Credit Balance Dec. 01 167: Computer Equipment Debit Credit Date Dec. 01 Balance 22,800 0 168: Accumulated Depreciation Computer Equipment Date Debit Credit Balance Dec. 01 201: Accounts Payable yapie Debit Credit Balance Date Dec. 01 0 210: Wages Payable Debit Credit Balance Date Dec. 01 236: Unearned Computer Services Revenue Date Debit Credit Balance Dec. 01 0 307: Common Stock Debit Credit 318: Retained Earnings Debit Credit Date Balance Date Dec. 01 Balance 72,000 Dec. 01 319: Dividends Debit Credit 403: Computer Services Revenue Debit Credit Date Dec. 01 Balance 6,300 Date Dec. 01 Balance 31,289 612: Depreciation Expense-Office Equipment Date Debit Credit Balance Dec. 01 613: Depreciation Expense-Computer Equipment Date Debit Credit Balance Dec. 01 623: Wages Expense Debit Credit 637: Insurance Expense Debit Credit Balance Date Balance Date Dec. 01 2,225 Dec. 01 640: Rent Expense Debit Credit 652: Computer Supplies Expense Debit Credit Balance Balance Date Dec. 01 Date Dec. 01 0 655: Advertising Expense Debit Credit 676: Mileage Expense Debit Credit Balance Date Dec. 01 Balance 1,678 Date Dec. 01 694 677: Miscellaneous Expense Debit Credit 684: Repairs Expense-Computer Debit Credit Date Date Dec. 01 Balance 210 Balance 735 Dec. 01 901: Income Summary Debit Credit Date Balance Balance Sheet December 31, 2019 Assets Total Assets Liabilities Total Liabilities Equity Total equity $ BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2019 Revenue Expenses Total expenses