On October 1, 2019, Santana Rey launched a computer services company called Business Solutions, which provides consulting services, computer system installations, and custom program development. Rey adopts the calendar year for reporting purposes and expects to prepare the companys first set of financial statements on December 31, 2019. After the success of the companys 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	$38,364
106	Accounts receivable	12,718
126	Computer supplies	2,645
128	Prepaid insurance	1,860
131	Prepaid rent	3,080
163	Office equipment	8,900
164	Accumulated depreciation- Office equipment		$0
167	Computer equipment	21,600
168	Accumulated depreciation-Computer equipment		0
201	Accounts payable		0
210	Wages payable		0
236	Unearned computer services revenue		0
307	Common stock		67,000
318	Retained earnings		0
319	Dividends	6,300
403	Computer services revenue		33,914
612	Depreciation expense- Office equipment	0
613	Depreciation expense- Computer equipment	0
623	Wages expense	2,150
637	Insurance expense	0
640	Rent expense	0
652	Computer supplies expense	0
655	Advertising expense	1,668
676	Mileage expense	654
677	Miscellaneous expenses	230
684	Repairs expense- Computer	745
	Totals	$100,914	$100,914

Business Solutions had the following transactions and events in December 2019.

Dec.	2	Paid $930 cash to Hillside Mall for Business Solutions share of mall advertising costs.
	3	Paid $450 cash for minor repairs to the companys computer.
	4	Received $4,350 cash from Alexs Engineering Co. for the receivable from November.
	10	Paid cash to Lyn Addie for six days of work at the rate of $115 per day.
	14	Notified by Alexs Engineering Co. that Business Solutions bid of $7,500 on a proposed project has been accepted. Alexs paid a $1,600 cash advance to Business Solutions.
	15	Purchased $1,900 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 $6,225 cash.
	22-26	Took the week off for the holidays.
	28	Received $3,400 cash from Gomez Co. on its receivable
	29	Reimbursed S. Rey for business automobile mileage (500 miles at $0.30 per mile).
	31	The company paid $1,100 cash in dividends.

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

a	The December 31 inventory count of computer supplies shows $590 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 $115 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.

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 f.
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 retained earnings for the three months ended December 31, 2019.
6	Prepare a balance sheet as of December 31, 2019.
7	Record and post the necessary closing entries as of December 31, 2019.
8	Prepare a post-closing trial balance as of December 31, 2019.