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After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30, 2019, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2019) follows. NO Account Title Debit Credit 101 Cash $ 38,264 106 Accounts receivable 12,618 126 Computer Supplies 2,545 128 Prepaid insurance 2,220 131 Prepaid rent 3,3ee 163 Office equipment 8,000 164 Accumulated depreciation-office equipment $ @ 167 Computer equipment 20,000 168 Accumulated depreciation-Computer equipment 201 Accounts payable a 218 Wages payable e 236 Unearned computer services revenue e 301 S. Rey, Capital 73,000 S. Rey, Withdrawals 403 5,6ee Computer services revenue 25,659 612 Depreciation expense-Office equipment 613 Depreciation expense-Computer equipment 623 Wages expense 637 2,625 Insurance expense Rent expense 652 Computer supplies expense 655 Advertising expense 676 1,728 Mileage expense 784 677 Miscellaneous expenses 250 684 Repairs expense-Computer 805 Totals $ 98,659 $98,659 382 640 Business Solutions had the following transactions and events in December 2019, Dec. 2 Paid $1,25 cash to Hillside Mall for Business Solutions share of mall advertising costs. 3 Paid $500 cash for minor repairs to the company's computer. 4 Received $3,95e 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. 14 Notified by Alex's Engineering Co. that Business Solutions bid of 57,000 on a proposed project has been accepted. Alex's paid a $1,500 cash advance to Business Solutions. 15 Purchased 51,100 of computer supplies on credit from Harris Office Products 16 Sent a reminder to Gomes Co. to pay the fee for services recorded on November 8. 2e Completed a project for Liu Corporation and received 35,625 cash 22-26 Took the week off for the holidays. 28 Received $3,000 cash from Gomez Co. on its receivable. 29 Reimbursed 5. Rey for business automobile mileage (600 miles at 50.32 per mile) 31 S. Rey withdrew $1,500 cash from the company for personal use. Business Solutions had the following transactions and events in December 2019. Dec. 2 Paid $1,025 cash to Hillside Mall for Business Solutions' share of mall advertising costs. 3 Paid $500 cash for minor repairs to the company's computer 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. 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. 16 Sent cainder to Gomez Co to pay the fee for services recorded on November 8. 2e 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. Ray for business automobile mileage (600 miles at 59.32 per mile). 31 3. 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 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. 1. 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 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 owner's equity for the three months ended December 31, 2019. 6. Prepare a balance sheet as of December 31, 2019. 210 The December 31, 2019, adjusted trial balance of Business Solutions (reflecting its transactions from October through December of 2019) follows No Account Title Debit Credit 101 Cash $ 48,372 196 Accounts receivable 5,668 126 Computer supplies 580 128 Prepaid insurance 131 1,665 Prepaid rent 825 163 Office equipment 164 Accumulated depreciation office equipment 8,600 $ 400 167 Computer equipent 20,000 168 Accumulated depreciation-Computer equipment 201 1,250 Accounts payable 1,100 Wages payable 236 Unearned computer services revenue 301 5. Rey, Capital 1,500 302 73,000 5. Rey, withdrawals 403 Computer services revenue 7,100 612 31,284 Depreciation expense-Office equipment 613 400 Depreciation expense-Computer equipment 1,250 623 Wages expense 637 3,875 Insurance expense 640 555 Rent expense 2,475 652 Computer supplies expense 655 3,065 Advertising expense 2,753 676 Mileage expense 896 677 Miscellaneous expenses Repairs expense-Computer 1,305 901 Income summary Totals $ 109,034 $ 109,034 Seo 250 Required; 1. Record the closing entries as of December 31, 2019. 2. Prepare a post-closing trial balance as of December 31, 2019