H SP 3 Serial Problem Business Solutions (Algo) LO P1, P2, P3, P4, P5

After the success of the companys first two months, Santana Rey continues to operate Business Solutions. The November 30, 2021, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2021) follows.

Number	Account Title	Debit	Credit
101	Cash	$ 38,664
106	Accounts receivable	13,218
126	Computer supplies	2,645
128	Prepaid insurance	1,920
131	Prepaid rent	3,060
163	Office equipment	8,600
164	Accumulated depreciationOffice equipment		$ 0
167	Computer equipment	22,400
168	Accumulated depreciationComputer equipment		0
201	Accounts payable		0
210	Wages payable		0
236	Unearned computer services revenue		0
307	Common stock		68,000
318	Retained earnings		0
319	Dividends	6,400
403	Computer services revenue		34,629
612	Depreciation expenseOffice equipment	0
613	Depreciation expenseComputer equipment	0
623	Wages expense	2,475
637	Insurance expense	0
640	Rent expense	0
652	Computer supplies expense	0
655	Advertising expense	1,698
676	Mileage expense	664
677	Miscellaneous expenses	150
684	Repairs expenseComputer	735
901	Income summary		0
	Totals	$ 102,629	$ 102,629

Business Solutions had the following transactions and events in December 2021.

December 2	Paid $960 cash to Hillside Mall for Business Solutions's share of mall advertising costs.
December 3	Paid $460 cash for minor repairs to the companys computer.
December 4	Received $4,350 cash from Alexs Engineering Company for the receivable from November.
December 10	Paid cash to Lyn Addie for six days of work at the rate of $105 per day.
December 14	Notified by Alexs Engineering Company that Business Solutions's bid of $7,000 on a proposed project has been accepted. Alexs paid a $2,200 cash advance to Business Solutions.
December 15	Purchased $2,000 of computer supplies on credit from Harris Office Products.
December 16	Sent a reminder to Gomez Company to pay the fee for services recorded on November 8.
December 20	Completed a project for Liu Corporation and received $5,625 cash.
December 22-26	Took the week off for the holidays.
December 28	Received $3,300 cash from Gomez Company on its receivable.
December 29	Reimbursed S. Rey for business automobile mileage (400 miles at $0.25 per mile).
December 31	Paid $1,200 cash for dividends.

The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the companys first three months.

1. The December 31 inventory count of computer supplies shows $620 still available.
2. Three months have expired since the 12-month insurance premium was paid in advance.
3. As of December 31, Lyn Addie has not been paid for four days of work at $105 per day.
4. The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.
5. The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.
6. Three of the four months' prepaid rent have expired.

Required: 2-b. Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger.

2b)

Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger.

Date December 01 Date December 01 Date December 01 101: Cash Debit Credit 126: Computer Supplies Debit Credit 131: Prepaid Rent Debit Credit Balance 38,664 Balance Date December 01 Date 2,645 December 01 Date December 01 Balance 3,060 106: Accounts Receivable Debit Credit 128: Prepaid Insurance Debit Credit 163: Office Equipment Debit Credit Balance 13,218 Balance 1,920 Balance 8,600 164: Accumulated Depreciation Office Equipment Date Debit Credit Balance December 01 168: Accumulated Depreciation-Computer Equipment Date Debit Credit Balance December 01 210: Wages Payable Debit Date Balance December 01 307: Common Stock Date Debit Balance December 01 Credit Credit 0 0 68,000 167: Computer Equipment Debit Credit 201: Accounts Payable Debit Credit 236: Unearned Computer Services Revenue Debit Credit 318: Retained Earnings Debit Credit Date December 01 Date December 01 Date December 01 Date December 01 Balance 22,400 Balance 0 Balance Balance 0 0 319: Dividends Debit Credit 612: Depreciation Expense-Office Equipment Date Debit Credit December 01 623: Wages Expense Debit Date December 01 640: Rent Expense Date Debit December 01 Date December 01 Credit Credit Balance 403: Computer Services Revenue Debit Credit 613: Depreciation Expense-Computer Equipment Date Debit Credit 0 December 01 637: Insurance Expense Debit Date Credit December 01 652: Computer Supplies Expense Date Debit Credit December 01 6,400 Balance Balance 2,475 Balance 0 Date December 01 Balance 34,629 Balance 0 Balance 0 Balance 0 Date December 01 Date December 01 655: Advertising Expense Debit Credit 677: Miscellaneous Expense Debit Credit Balance 1,698 Balance 150 Date December 01 Date December 01 676: Mileage Expense Debit Credit 684: Repairs Expense-Computer Debit Credit Balance 664 Balance 735