itter the success of the company's first two months, Santana Rey continues to operate Business Solur nadjusted trial balance of Business Solutions (reflecting its transactions for October and November o 3usiness Solutions had the following transactions and events in December 2021. December 2 Paid 3940 cash to Hillside Mall for Business solutions's share of mall advertising costs Decenber '3 paid sane cash to williside mall for business solutions's share December a Received $4,650 cash from Alex's Engineering Company for the receivable fron November. December is Notified by Alex's Engineering Company that Business Solutions's bid of \$37, 3ee on a propo accepted. Alex's paid a \$2,500 cash advance to Business Solutions. The following additional facts are collected for use in making adjusting entries prior to preparing financial stotements for the company's first three months. a. The December 31 inventory count of computer supplies shows $660 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 $105 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 volue. 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 ledgec 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, 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 balance 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 Complete this question by entering your answers in the tabs below. Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledget. (if no entity ai required for a transaction/everit, select "No journal entry required" in the first account field.). The following additional facts are collected for use in making adjusting entries prior to preparing finat company's first three months. a. The December 31 inventory count of computer supptles shows $660 still avallable. 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 $105 per day. d. The computer system, acquired on October 1, is expected to have a four-year life with no salvage e. The office equipment, acquired on october 1, is expected to have a five-year life with no salvagev f. Three of the four months' prepaid rent have expired. Required: 1. Prepare journal entries to record each of the December transactions. Post those entrles to the acc 2-a. Prepare adjusting entries to reflect a through f. 2-b. Post the joumal entries to record each of the December transactions, adjusting entries to the ac 3. Prepare an adjusted tral 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 eamings for the three months ended December 31,2021 . 6. Prepare a classified balance 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Prepare a statement of retained earnings for the three months ended December 31,2021. 2-a. Prepare adjusting entries to refiect a through f. 2-b. Post the journal entries to record each of the December transactions, adjusting entries to the acco 3. Prepare an adjusted tral 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 balance 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 or December 31,2021. (8) Answer is not complete. Complete this question by entering your answers in the tabs below. Prepare an income statement for the three months ended December 31,2021. complete this question by entering your answers in the tabs . Prepare an adjusted trial balance as of December 31, 2021. After the success of the company's first twe months. Santana Rey continues to operate Business Solutions. The November 30,2021, unadjusted trial balance of Business Solutions (feffecting its transactions for October and November of 2021) follows. Business Solutions had the following transoctions and evento in December 2021 . Decenber 2 paid sa4e cash to miliside moll for ousiness solutions's share of nall advertisine costs. pecenber 3 Paid s43e cash for minor repairs to the company's concuter. Decenber 4 Recelved 14 , 6se cash from Alex's tneineering cancany for the recelvable froe noveaber. Decenber 10 paid cash to cyn Addie for six days of work at the rate of s1es per day. Decenter it wotified by Alex's Eneineerine concony that dusiness solvtions's bid of 37, see on a propesed preject aas beee accepted. Alee's peid o 52 , soe cash advance to lusiness solutions. Deceuber 16 sent a reninder to cooce company to pay the fee for services recordes en wovesoer a. Decteber 20 completed a project for tiu corporation and recelved 55 , c7s cash. Decenber 22.26. Took the week off for the hotidays. Decinber 2n Meceived 33, 100 cash from coner corvany on its receivable. Decentier 11 faid 11,400 cash for dividends. The following oddibonal focts are collected for use in making adjusting entries prior to presaring financul statemens for the company s tirst three mionths. 9. The December 31 inventory count of computer supplies thows 4600 sum macable. b. Thee monthe hove explied since the 12 -month insutance premium was paid in advance c. As of December 3t, Lyn Addie nas not been paid for four days of work at 3105 per day December 10 Payd cash to Lyn Addie tor s1x days of work at the rate of $185 per day. Decenber 14 Notified by Alex's Englneering conpany that Business. Solutions's bid of $7,300 on a proposed project has been accepted. Alex's paid a 52,500 cash advance to business solutions. December 15 Purchased $1,300 of computer supplies on credit from Harris office Praducts. December 16 sent a reminder to Gomez conpany to pay the fee for services recorded on Novenber s. Decenber 20 completed a project for Liu corporation and received $5,675 cash. Deceaber 22-26. Took the week off for the holidays. Deceober 28 received $3,100 cash from Gonez company on its receivable. Decenber 29 Reinbursed 5. Rey for business automobile nileage (40e miles at se.24 per nile). Decenber 31 Paid $1,46e 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 $660 sull avallable. b. Three months have expired since the 12 -month insurance premium was paid in advance. c. As of December 31, Lyn Addle has nor been paid for four days of work at $105 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 iffe 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 reffect a through t. 2-b. Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the leciger. 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 balance sheet as of December 31, 2021. 7. Record the necessary closing entries as of December 31, 2021 . 3. Prepare a post-closing trial balance as of December 31, 2021 . Complete this question by entering your answers in the tabs below. Prepare adjusting entries to reflect a through f. (If no entry is reguired for a transaction/evecti, select "Wo purmal entry required" in the first account field.]
