If previous chapter seg SERIAL PROBLEM Business Solutions P1 P2 P3 This serial problem began in Chapter 1 and continues through most of the book. It previous chapter ments were not completed, the serial problem can still begin ar this point. SP 3 After the success of the company's first two months, Santana Rey continues to operate Busin Solutions. (Transactions for the first two months are described in the Chapter 2 serial problem.) November 30, 2017, unadjusted trial balance of Business Solutions (reflecting its transactions for Octobe and November of 2017) follows. Debit Credit No. Account Title $38,264 12,618 2,545 2.220 3,300 8,000 20,000 Alexander ImageShutterstock RF 101 106 126 128 131 163 164 167 168 201 210 236 301 302 403 612 613 623 637 640 652 655 676 677 684 73,000 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 ........... S. Rey, Capital .... S. Rey, Withdrawals .............. 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 5,600 EEEEEEEEEEEEEEEEEEEEE 25,659 2,625 1,728 704 250 805 $98,659 $98,659 Cildpler 3 Adjusting Accounts for Financial Statements Business Solutions had the fo 2 Paid $1,025 cash to Hillsi 3 Paid $500 cash form 4 Received $3,950 cash 10 Paid cash to Lyn Addie 14 Notified by Alex's Engine ect has been accepted. Alex' 15 Purchased $1,100 of com a the following transactions and events in December 2017. Hillside Mall for Business Solutions's share of mall advertising costs. cash for minor repairs to the company's computer. 3.950 cash from Alex's Engineering Co. for the receivable from November. Lyn Addie for six days of work at the rate of $125 per day. v Alex's Engineering Co. that Business Solutions's bid of $7,000 on a proposed proj- been accepted. Alex's paid a $1,500 cash advance to Business Solutions. based $1.100 of computer supplies on credit from Harris Office Products. 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. 22-26 Took the week off for the holidays. 28 Received $3,000 cash from Gomez Co. on its receivable. 29 Reimbursed S. Rey for business automobile mileage (600 miles at $0.32 per mile). 31 S. Rey withdrew $1,500 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 $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. 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. Three of the four months' prepaid rent has expired. Required 1. Prepare journal entries to miles to record each of the December transactions and events for Business Solutions. ost those entries to the accounts in the ledger. 2. Prepare adjusting entries to 3. Prepare an adjust entries to reflect a through f. Post those entries to the accounts in the ledger. an adjusted trial balance as of December 31, 2 Prepare an income stateme 5. Prepare a stala 6. Prepare a balan Prepare a statement of owner's equity statement for the three months ended December 31, 2017. ner's equity for the three months ended December 31, 2017 leet as of December 31, 2017. financial statements as o