On October 1, 2015, Hisham Ahmed launched a computer services company called Techno- Solutions, which provides consulting services, computer system installations, and custom program development. Hisham adopts the calendar year for reporting purposes and expects to prepare the company's first set of financial statements on December 31, 2015. The company's chart of accounts follows. Required Part 1a. Prepare journal entries to record each of the following transactions for Business Solutions. Oct.1 Hisham invested $40,000 cash, a $50,000 computer system, and $10,000 of office equipment in the company. 2 The company paid $3,300 cash for four months' rent. (Hint: Debit Prepaid Rent for $3,300.) 3 The company purchased $1,420 of computer supplies on credit from Harris Office Products. 5 The company paid $2,220 cash for one year's premium on a property and liability insurance policy. (Hint: Debit Prepaid Insurance for $2,220.) 6 The company billed Easy Leasing $4,000 for services performed in installing a new Web server. 10 8 The company paid $1,420 cash for the computer supplies purchased from Harris Office Products on October 3. The company hired Lyn Addie as a part-time assistant for $125 per day, as needed. 12 The company billed Easy Leasing another $1,400 for services performed. 15 The company received $4,000 cash from Easy Leasing as partial payment on its account. 17 The company paid $805 cash to repair computer equipment that was damaged when moving it. 20 The company paid $1,728 cash for advertisements published in the local newspaper. 22 The company received $1,400 cash from Easy Leasing on its account. 28 The company billed IFM Company $5,208 for services performed. 31 The company paid $875 cash for Lyn Addie's wages for seven days' work. 31 Hisham withdrew $3,600 cash from the company for personal use. Nov.1 The company reimbursed Hisham in cash for business automobile mileage allowance (Hisham logged 1,000 miles at $0.32 per mile). 2 The company received $4,500 cash from Liu Corporation for computer services performed. 5 The company purchased computer supplies for $1,125 cash from Harris Office Products. 8 The company billed Gomez Co. $5,668 for services performed. 18 The company received $2,208 cash from IFM Company as partial payment of the October 28 bill. 22 The company donated $250 cash to the United Way in the company's name. The company completed work for Alex's Engineering Co. and sent it a bill for $3,950. The company reimbursed Hisham in cash for business automobile mileage (1,200 miles at $0.32 per mile). 30 The company paid $1,750 cash for Lyn Addie's wages for 14 days' work. 30 Hisham withdrew $2,000 cash from the company for personal use. 2 24 28 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 a 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. 28 Received $3,000 cash from Gomez Co. on its receivable. 29 Reimbursed Hisham for business automobile mileage (600 miles at $0.32 per mile). 31 Hisham withdrew $1,500 cash from the company for personal use. Part 1.b. Adjustments. 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. As of December 31, Lyn Addie has not been paid for four days of work at $125 per day. d. The company's computer is expected to have a four-year life with no salvage value. The office equipment is expected to have a five-year life with no salvage value. f. Three of the four months' prepaid rent has expired. c. e. Required 1. Prepare journal entries to record each of the October to December transactions and events for Business Solutions. Post those entries to the accounts in the ledger. 2. Prepare adjusting entries to reflect a through f. Post those entries to the accounts in the ledger. 3. Prepare an adjusted trial balance using working sheet as of December 31, 2015. 4. Prepare an income statement for the three months ended December 31, 2015. 5. Prepare a statement of owner's equity for the three months ended December 31, 2015. 6. Prepare a balance sheet as of December 31, 2015. 7. Post-closing trial balance