Dec. The November 30, 2020, unadjusted trial balance of Business Solutions is found in the Trial balance tab. Business Solutions had the following transactions and events in December 2020. Dec. 2 paid $1,025 cash to Hillside Mall for Business Solutions' share of mall advertising costs. Dec. Dec. 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. Dec. 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 $1,500 cash advance to Business Solutions. 15 Purchased $1,100 of computer supplies on credit from Harris office Products. Dec. 16 Sent a reminder to Gomez co. to pay the fee for services recorded on November 8. Dec. 20 Completed a project for Liu Corporation and received $5,625 cash. Dec. 22- Took the week oft for the holidays. 26 Dec. 28 Received $3,000 cash from Gomere Co. on its receivable. Dec. 29 Reimbursed S. Rey for business automobile mileage (600 miles at $0.32 per mile). Dec. 31 The company paid $1.500 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: Dec. 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, No Date Credit Account Title Debit 1 Dec 02 1,025 Advertising expense Cash 1,025 500 2 Dec 03 Repairs expense - Computer Cash 500 3 Dec 04 3,950 Cash Accounts receivable 3,950 750 4 Dec 10 Wages expense Cash 750 1,500 5 Dec 14 Cash Unearned computer services revenue 1,500 1,100 6 Dec 15 Computer supplies Accounts payable 1.100 7 Dec 16 No journal entry required 5,625 8 Dec 20 Cash Computer services revenue 5,625 3,000 9 Dec 28 Cash 3,000 Accounts receivable 5,625 Computer services revenue 3,000 9 Dec 28 Cash Accounts receivable 3,000 192 10 Dec 29 Mileage expense Cash 192 1,500 11 Dec 31 Dividends Cash 1,500 3,065 12 Dec 31 Computer supplies expense Computer supplies 3,065 555 13 Dec 31 Insurance expense Prepaid insurance 555 500 14 Dec 31 Wages expense Wages payable 500 1,250 15 Dec 31 Depreciation expense - Computer equipment Accumulated depreciation - Computer equipment 1,250 400 16 Dec 31 Depreciation expense - Office equipment Accumulated depreciation - Office equipment 400 2,475 17 Dec 31 Rent expense Prepaid rent 2,475 . Hujuste BUSINESS SOLUTIONS Trial Balance December 31, 2020 Account Title Debit Credit $ 48,372 5,668 580 1,665 825 8,000 400 20,000 3 1.250 1,100 500 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 Uneamed computer services revenue Common stock Dividends Computer services revenue Depreciation expense - Office equipment Depreciation expense - Computer equipment Wages expense Insurance expense Rent expense Computer supplios expense Advertising expense Mileage expenso Miscellanous expenses 1,500 73,000 7.100 31,284 400 1.250 3,875 555 2,475 3,065 2,753 896 250 BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2020 Revenues: Computer services revenue 31,284 0 $ 31,284 Total revenues 400 1,250 3,875 555 Expenses: Depreciation expense - Office equipment Depreciation expense - Computer equipment Wages expense Insurance expense Computer supplies expense Advertising expense Mileage expense Miscellanous expenses Repairs expense - Computer Rent expense 3,065 2,753 896 250 1,305 2,475 0 Total expenses Net income 16,824 14,460 $ BUSINESS SOLUTIONS Balance Sheet December 31, 2020 ASSETS $ Current assets: Cash Accounts receivable Computer supplies Prepaid insurance Prepaid rent 48,372 5,668 580 1,665 825 0 $ 57,110 8,000 (400) 7,600 Total current assets Plant assets: Office equipment Accumulated depreciation - Office equipment Office equipment, net Computer equipment Accumulated depreciation - Computer equipment Computer equipment, net Total plant assets Total assets es 20,000 (1.250) 18.750 26,350 83,460 $ LIABILITIES AND EQUITY Liabilities: Accounts payable Wages payable Unearned computer services revenue 1,100 500 1,500 0 3,100 Total liabilities JI.HU TUI VOTI SUL Plant assets: 8,000 (400) 7,600 Office equipment Accumulated depreciation - Office equipment Office equipment, net Computer equipment Accumulated depreciation - Computer equipment Computer equipment, net Total plant assets Total assets 20,000 (1,250) 18,750 26,350 83,460 $ LIABILITIES AND EQUITY Liabilities: Accounts payable Wages payable Unearned computer services revenue 1,100 500 1,500 0 3,100 Total liabilities Equity Common stock 73,000 0 Total equity Total liabilities and equity 73,000 76,100 $ Account affecting the: Income Statement Balance Sheet Computer supplies Impact on net Tincome Adjusting entry related to: a) Computer supplies b) Prepaid insurance c) Accrued wages d) Depreciation - Computer equipment e) Depreciation - Office equipment 1) Prepaid rent $ 0 0 Had the adjustments not been prepared, income would have been understated by Dec. The November 30, 2020, unadjusted trial balance of Business Solutions is found in the Trial balance tab. Business Solutions had the following transactions and events in December 2020. Dec. 2 paid $1,025 cash to Hillside Mall for Business Solutions' share of mall advertising costs. Dec. Dec. 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. Dec. 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 $1,500 cash advance to Business Solutions. 15 Purchased $1,100 of computer supplies on credit from Harris office Products. Dec. 16 Sent a reminder to Gomez co. to pay the fee for services recorded on November 8. Dec. 20 Completed a project for Liu Corporation and received $5,625 cash. Dec. 22- Took the week oft for the holidays. 26 Dec. 28 Received $3,000 cash from Gomere Co. on its receivable. Dec. 29 Reimbursed S. Rey for business automobile mileage (600 miles at $0.32 per mile). Dec. 31 The company paid $1.500 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: Dec. 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, No Date Credit Account Title Debit 1 Dec 02 1,025 Advertising expense Cash 1,025 500 2 Dec 03 Repairs expense - Computer Cash 500 3 Dec 04 3,950 Cash Accounts receivable 3,950 750 4 Dec 10 Wages expense Cash 750 1,500 5 Dec 14 Cash Unearned computer services revenue 1,500 1,100 6 Dec 15 Computer supplies Accounts payable 1.100 7 Dec 16 No journal entry required 5,625 8 Dec 20 Cash Computer services revenue 5,625 3,000 9 Dec 28 Cash 3,000 Accounts receivable 5,625 Computer services revenue 3,000 9 Dec 28 Cash Accounts receivable 3,000 192 10 Dec 29 Mileage expense Cash 192 1,500 11 Dec 31 Dividends Cash 1,500 3,065 12 Dec 31 Computer supplies expense Computer supplies 3,065 555 13 Dec 31 Insurance expense Prepaid insurance 555 500 14 Dec 31 Wages expense Wages payable 500 1,250 15 Dec 31 Depreciation expense - Computer equipment Accumulated depreciation - Computer equipment 1,250 400 16 Dec 31 Depreciation expense - Office equipment Accumulated depreciation - Office equipment 400 2,475 17 Dec 31 Rent expense Prepaid rent 2,475 . Hujuste BUSINESS SOLUTIONS Trial Balance December 31, 2020 Account Title Debit Credit $ 48,372 5,668 580 1,665 825 8,000 400 20,000 3 1.250 1,100 500 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 Uneamed computer services revenue Common stock Dividends Computer services revenue Depreciation expense - Office equipment Depreciation expense - Computer equipment Wages expense Insurance expense Rent expense Computer supplios expense Advertising expense Mileage expenso Miscellanous expenses 1,500 73,000 7.100 31,284 400 1.250 3,875 555 2,475 3,065 2,753 896 250 BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2020 Revenues: Computer services revenue 31,284 0 $ 31,284 Total revenues 400 1,250 3,875 555 Expenses: Depreciation expense - Office equipment Depreciation expense - Computer equipment Wages expense Insurance expense Computer supplies expense Advertising expense Mileage expense Miscellanous expenses Repairs expense - Computer Rent expense 3,065 2,753 896 250 1,305 2,475 0 Total expenses Net income 16,824 14,460 $ BUSINESS SOLUTIONS Balance Sheet December 31, 2020 ASSETS $ Current assets: Cash Accounts receivable Computer supplies Prepaid insurance Prepaid rent 48,372 5,668 580 1,665 825 0 $ 57,110 8,000 (400) 7,600 Total current assets Plant assets: Office equipment Accumulated depreciation - Office equipment Office equipment, net Computer equipment Accumulated depreciation - Computer equipment Computer equipment, net Total plant assets Total assets es 20,000 (1.250) 18.750 26,350 83,460 $ LIABILITIES AND EQUITY Liabilities: Accounts payable Wages payable Unearned computer services revenue 1,100 500 1,500 0 3,100 Total liabilities JI.HU TUI VOTI SUL Plant assets: 8,000 (400) 7,600 Office equipment Accumulated depreciation - Office equipment Office equipment, net Computer equipment Accumulated depreciation - Computer equipment Computer equipment, net Total plant assets Total assets 20,000 (1,250) 18,750 26,350 83,460 $ LIABILITIES AND EQUITY Liabilities: Accounts payable Wages payable Unearned computer services revenue 1,100 500 1,500 0 3,100 Total liabilities Equity Common stock 73,000 0 Total equity Total liabilities and equity 73,000 76,100 $ Account affecting the: Income Statement Balance Sheet Computer supplies Impact on net Tincome Adjusting entry related to: a) Computer supplies b) Prepaid insurance c) Accrued wages d) Depreciation - Computer equipment e) Depreciation - Office equipment 1) Prepaid rent $ 0 0 Had the adjustments not been prepared, income would have been understated by