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Prime Solutions began operations on October 1, 2021. The November 30, 2021 unadjusted trial balance is included on the trial balance tab. Record the following transactions and events for December, 2021. December 2 Paid $1,300 cash to Westside Mall for Prime Solutions' share of mall advertising costs. December 3 Paid $680 cash for minor repairs to the company's computer. December 4 Received $5,800 cash from Clark Engineering Company for the receivable from November. December 10 Paid cash to Kathy Byrnes for six days of work at the rate of $160 per day. December 14 Notified by Clark Engineering Company that Prime Solutions' bid of $7,900 on a proposed project has been accepted. Clark paid a $1,950 cash advance to Prime Solutions. December 15 Purchased $1,550 of computer supplies on credit from Hayes Office Products. December 16 Sent a reminder to Potter Company to pay the fee for services recorded on November 8. December 20 Completed a project for Miller Corporation and received $6,500 cash. December 28 Received $3,200 cash from Potter Company on its receivable. December 29 Reimbursed J. Byrnes for business automobile mileage (800 miles at $0.32 per mile). December 31 J. Byrnes withdrew $1,900 cash from the company for personal use. 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 $940 still available. b. Three months have expired since the 12-month insurance premium was paid in advance. c. As of December 31, Kathy Byrnes has not been paid for four days of work at $160 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. Requirement General Journal General Ledger Trial Balance Income Statement St Owners Equity Balance Sheet Impact on Income Prepare journal entries for each of the December transactions. If no journal entry is required, select "No journal entry required" in the first account field. Then, using the 3-step adjusting entry process, and the information given for adjustments, prepare the adjusting entry necessary to correctly report the revenue earned or the expense incurred. After adjusting the accounts, review the general ledger and trial balance for accuracy. Show less Requirement General Journal General Ledger Trial Balance Income Statement St Owners Equity Balance Sheet Impact on Income General Journal tab - Prepare journal entries for each of the December transactions. Then, using the information given for adjustments, prepare the adjusting entry necessary to correctly report the revenue earned or the expense incurred. After adjusting the accounts, review the general ledger and trial balance for accuracy. General Ledger tab - Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted or adjusted balances. Trial Balance tab - You may view either the unadjusted or adjusted trial balance by choosing from the dropdown box below. Your choice will determine the reported values on the financial statement tabs. Income Statement tab - Use the drop-downs to select the accounts properly included on the income statement. The unadjusted or adjusted balances will appear for each account, based on your selection. Statement of Owner's Equity tab - The unadjusted or adjusted balances will appear for each account, based on your selection. Balance Sheet tab - Use the drop-downs to select the accounts properly included on the balance sheet. The unadjusted or adjusted balances will appear for each account, based on your selection. Impact on Income tab - For each adjustment, indicate the income statement and balance sheet account affected, and the impact on net income. If an adjustment caused net income to decrease, enter the amount as a negative value. Net income before adjustments can be found on the income statement tab. (Hint: Select unadjusted on the dropdown.) PRIME SOLUTIONS Trial Balance December 31, 2021 Account Title Debit Credit Cash $ 45,922 5,400 4,370 3,600 5,100 8,800 26,400 1,550 1,950 Accounts receivable Computer supplies Prepaid insurance Prepaid rent Office equipment Computer equipment Accounts payable Unearned computer services revenue J. Byrnes, Capital J. Byrnes, Withdrawals Computer services revenue Wages expense Advertising expense Mileage expense Miscellanous expenses Repairs expense - Computer Total 77,500 7,600 36,600 4,320 3,028 960 340 1,760 117,600 $ $ 117,600 Prime Solutions began operations on October 1, 2021. The November 30, 2021 unadjusted trial balance is included on the trial balance tab. Record the following transactions and events for December, 2021. December 2 Paid $1,300 cash to Westside Mall for Prime Solutions' share of mall advertising costs. December 3 Paid $680 cash for minor repairs to the company's computer. December 4 Received $5,800 cash from Clark Engineering Company for the receivable from November. December 10 Paid cash to Kathy Byrnes for six days of work at the rate of $160 per day. December 14 Notified by Clark Engineering Company that Prime Solutions' bid of $7,900 on a proposed project has been accepted. Clark paid a $1,950 cash advance to Prime Solutions. December 15 Purchased $1,550 of computer supplies on credit from Hayes Office Products. December 16 Sent a reminder to Potter Company to pay the fee for services recorded on November 8. December 20 Completed a project for Miller Corporation and received $6,500 cash. December 28 Received $3,200 cash from Potter Company on its receivable. December 29 Reimbursed J. Byrnes for business automobile mileage (800 miles at $0.32 per mile). December 31 J. Byrnes withdrew $1,900 cash from the company for personal use. 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 $940 still available. b. Three months have expired since the 12-month insurance premium was paid in advance. c. As of December 31, Kathy Byrnes has not been paid for four days of work at $160 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. Requirement General Journal General Ledger Trial Balance Income Statement St Owners Equity Balance Sheet Impact on Income Prepare journal entries for each of the December transactions. If no journal entry is required, select "No journal entry required" in the first account field. Then, using the 3-step adjusting entry process, and the information given for adjustments, prepare the adjusting entry necessary to correctly report the revenue earned or the expense incurred. After adjusting the accounts, review the general ledger and trial balance for accuracy. Show less Requirement General Journal General Ledger Trial Balance Income Statement St Owners Equity Balance Sheet Impact on Income General Journal tab - Prepare journal entries for each of the December transactions. Then, using the information given for adjustments, prepare the adjusting entry necessary to correctly report the revenue earned or the expense incurred. After adjusting the accounts, review the general ledger and trial balance for accuracy. General Ledger tab - Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted or adjusted balances. Trial Balance tab - You may view either the unadjusted or adjusted trial balance by choosing from the dropdown box below. Your choice will determine the reported values on the financial statement tabs. Income Statement tab - Use the drop-downs to select the accounts properly included on the income statement. The unadjusted or adjusted balances will appear for each account, based on your selection. Statement of Owner's Equity tab - The unadjusted or adjusted balances will appear for each account, based on your selection. Balance Sheet tab - Use the drop-downs to select the accounts properly included on the balance sheet. The unadjusted or adjusted balances will appear for each account, based on your selection. Impact on Income tab - For each adjustment, indicate the income statement and balance sheet account affected, and the impact on net income. If an adjustment caused net income to decrease, enter the amount as a negative value. Net income before adjustments can be found on the income statement tab. (Hint: Select unadjusted on the dropdown.) PRIME SOLUTIONS Trial Balance December 31, 2021 Account Title Debit Credit Cash $ 45,922 5,400 4,370 3,600 5,100 8,800 26,400 1,550 1,950 Accounts receivable Computer supplies Prepaid insurance Prepaid rent Office equipment Computer equipment Accounts payable Unearned computer services revenue J. Byrnes, Capital J. Byrnes, Withdrawals Computer services revenue Wages expense Advertising expense Mileage expense Miscellanous expenses Repairs expense - Computer Total 77,500 7,600 36,600 4,320 3,028 960 340 1,760 117,600 $ $ 117,600