OOOOOO 128 After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30, 2015, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2015) follows. No. Account Title Debit Credit 101 Cash $ 38,764 106 Accounts receivable 13,518 126 Computer supplies 2,545 Prepaid insurance 2,160 131 Prepaid rent 3,100 163 Office equipment 8,400 164 Accumulated depreciation - Office equipment $ 0 167 Computer equipment 24,000 168 Accumulated depreciation-Computer equipment 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue 307 Common stock 72,000 318 Retained earnings 319 Dividends 5,700 403 Computer services revenue 31,839 612 Depreciation expense-Office equipment 0 613 Depreciation expense-Computer equipment 0 623 Wages expense 2.275 637 Insurance expense 0 640 Rent expense 0 652 Computer supplies expense 0 655 Advertising expense 1.718 676 Mileage expense 704 677 Miscellaneous expenses 210 684 Repairs expense Computer 745 Totals $ 103,839 $ 103,839 Business Solutions had the following transactions and events in December 2015 Dec. 2 Paid $1,025 cash to Hillside Mall for Business Solutions' share of mall advertising costs. 3 Paid $420 cash for minor repairs to the company's computer 4 Received $4,350 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 $110 per day 14 Notified by Alex's Engineering Co, that Business Solutions' bid of $7.200 on a proposed Business Solutions had the following transactions and events in December 2015. Dec. 2 Paid $1,025 cash to Hillside Mall for Business Solutions' share of mall advertising costs. 3 Paid $420 cash for minor repairs to the company's computer. 4 Received $4,350 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 $110 per day. 14 Notified by Alex's Engineering Co that Business Solutions' bid of $7,200 on a proposed project has been accepted. Alex's paid a $1,700 cash advance to Business Solutions. 15 Purchased $2,000 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 $5,825 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 (400 miles at $0.32 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 company's first three months a. The December 31 inventory count of computer supplies shows $600 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 $110 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 has expired. Required: 1. Prepare journal entries to record each of the December transactions and events for Business Solutions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 2.1 Prepare adjusting entries to reflect a through f. View transaction list Journal entry worksheet 2 6 The December 31 inventory count of computer supplies shows $600 still available Note: Enter debits before credits. Debit Credit Transaction General Journal Computer supplies expense Computer supplies Record entry Clear entry View general Journal 2.1 Prepare adjusting entries to reflect a through f. View transaction list Journal entry worksheet As of December 31, Lyn Addie has not been paid for four days of work at $110 per day. Note: Enter debits before credits. General Journal Debit Credit Transaction Wages expense Wages payable C. Record entry Clear entry View general journal .1 Prepare adjusting entries to reflect a through f. View transaction list Journal entry worksheet The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value. Note: Enter debits before credits Debit Credit Transaction General Journal e. Depreciation expense-Office equipment Accumulated depreciation Office equipment Record entry Clear entry View general Journal -1 Prepare adjusting entries to reflect a through f. View transaction list Journal entry worksheet