Business Solutions had the following transactions and events in December 2021. December 2 Paid $930 cash to Hillside Mall for Business Solutions's share of mall advertising costs. December 3 Paid $470 cash for minor repairs to the conpany's computer. December 4 Received $4,450 cash from Alex's Engineering Company for the receivable fron November. December 10 Paid cash to Lyn Addie for six days of work at the rate of $110 per day. December 14 Notified by Alex's Engineering Company that Business Solutions's bid of $7,700 on a proposed project h been accepted. Alex's paid a $2,200 cash advance to Business Solutions. Decenber 15 Purchased $1,608 of computer supplies on credit from Harris office Products. December 16 Sent a reninder to Gomez Company to pay the fee for services recorded on November 8 , December 2 Paid $930 cash to Hillside Mall for Business Solutions's share of mall advertising costs. December 3 Paid $470 cash for minor repairs to the company's computer. Decenber 4 Received $4,450 cash fron Alex's Engineering Company for the receivable fron November. December 10 Paid cash to Lyn Addie for six days of work at the rate of $110 per day. December 14 Notified by Alex's Engineering Company that Business Solutions's bid of 57,700 on a proposed project has been accepted. Alex's paid a $2,200 cash advance to Business Solutions. December 15 Purchased $1,600 of computer supplies on credit from Harris office Products. December 16 Sent a reninder to Gomez Company to pay the fee for services recorded on November 8. December 20 Completed a project for Liu Corporation and received $5,925 cash. December 22-26 Took the week off for the holidays. Decenber 28 Received $3,900 cash from Gomez Conpany on its receivable. December 29 Reimbursed 5. Rey for business automobile mileage (600 miles at 50.29 per mite). Decenber 31 Paid $1,400 cash for 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 $610 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 have expired. Required: 1. Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger. 2-a. Prepare adjusting entries to reflect o through t. 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 31,2021. 4. Prepare an income statement for the three months ended December 31, 2021. 5. Prepare a statement of retained earnings for the three months ended December 31,2021 . 6. Prepare a classified batance sheet as of December 31, 2021. 7. Record the necessary closing entries as of December 31, 2021. 8. Prepare a post-closing trial balance as of December 31, 2021 . Business Solutions had the following transactions and events in December 2021. December 2 Paid $930 cash to Hillside Mall for Business Solutions's share of mall advertising costs. December 3 Paid $470 cash for minor repairs to the conpany's computer. December 4 Received $4,450 cash from Alex's Engineering Company for the receivable fron November. December 10 Paid cash to Lyn Addie for six days of work at the rate of $110 per day. December 14 Notified by Alex's Engineering Company that Business Solutions's bid of $7,700 on a proposed project h been accepted. Alex's paid a $2,200 cash advance to Business Solutions. Decenber 15 Purchased $1,608 of computer supplies on credit from Harris office Products. December 16 Sent a reninder to Gomez Company to pay the fee for services recorded on November 8 , December 2 Paid $930 cash to Hillside Mall for Business Solutions's share of mall advertising costs. December 3 Paid $470 cash for minor repairs to the company's computer. Decenber 4 Received $4,450 cash fron Alex's Engineering Company for the receivable fron November. December 10 Paid cash to Lyn Addie for six days of work at the rate of $110 per day. December 14 Notified by Alex's Engineering Company that Business Solutions's bid of 57,700 on a proposed project has been accepted. Alex's paid a $2,200 cash advance to Business Solutions. December 15 Purchased $1,600 of computer supplies on credit from Harris office Products. December 16 Sent a reninder to Gomez Company to pay the fee for services recorded on November 8. December 20 Completed a project for Liu Corporation and received $5,925 cash. December 22-26 Took the week off for the holidays. Decenber 28 Received $3,900 cash from Gomez Conpany on its receivable. December 29 Reimbursed 5. Rey for business automobile mileage (600 miles at 50.29 per mite). Decenber 31 Paid $1,400 cash for 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 $610 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 have expired. Required: 1. Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger. 2-a. Prepare adjusting entries to reflect o through t. 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 31,2021. 4. Prepare an income statement for the three months ended December 31, 2021. 5. Prepare a statement of retained earnings for the three months ended December 31,2021 . 6. Prepare a classified batance sheet as of December 31, 2021. 7. Record the necessary closing entries as of December 31, 2021. 8. Prepare a post-closing trial balance as of December 31, 2021
