Prepare an income statement for the three months ended December 31, 2018. BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2018 Revenue Computer services revenue Expenses Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs e Total expenses Net income BUSINESS SOLUTIONS Statement of Retained Earnings For Three Months Ended December 31, 2018 Retained earnings, October 1, 2018 Add: Net income Less: Dividends Retained earnings, December 31, 2018 KReq 4 Req 6 Prepare a balance sheet as of December 31, 2018 BUSINESS SOLUTIONS Balance Sheet December 31, 2018 Assets Cash Accounts receivable Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciation-Office equipment Computer equipment Accumulated de Total Assets preciatio puter equipment Liabilities Accounts payable Wages payable Unearned computer services revenue Total Liabilities Equity Common stock Retained earnings Record and post the necessary closing entries as of December 31, 2018. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet Date General Journal Debit Credit Dec. 31 Computer services revenue Income summary 2 Dec. 31 Income summary Accumulated depreciation-Office equipment Accumulated depreciation-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer Dec. 31 Income summary Retained earnings BUSINESS SOLUTIONS Post-Closing Trial Balance December 31, 2018 Credit Debit Cash Accounts receivable Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciation-Office equipment Computer equipment Accumulated depreciatio Accounts payable Wages payable Unearned computer services revenue Common stock Retained earnings Totals puter equipment After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30, 2018 unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2018) follows Debit $38,664 13,218 2,645 2,160 3,060 8,400 Account Title Credit 101 Cash 106 Accounts receivable 126 Computer supplies 128 Prepaid insurance 131 163 office equipment 164 Accumulated depreciation-Office equipment 167 Computer equipment 168 Accumulated depreciation-Computer equipment 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue 307 Common stock 318 Retained earnings 319 Dividends 403 Computer services revenue 612 Depreciation expense-Office equipment 613 Depreciation expense-Computer equipment 623 Wages expense 637 Insurance expense 640 Rent expense 652 Computer supplies expense 655 Advertising expense 676 Mileage expense 677 Miscellaneous expenses 684 Repairs expense-Computer Prepaid rent 24,000 72,000 6,400 31,979 2,275 1,658 604 180 715 $103,979 $103,979 Totals Business Solutions had the following transactions and events in December 2018 Dec. 2 Paid $1,020 cash to Hillside Mall for Business Solutions' share of mall advertising costs 3 Paid $480 cash for minor repairs to the company's computer 4 Received $4,450 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 $115 per day 14 Notified by Alex's Engineering Co. that Business Solutions' bid of $8,000 on a proposed project has been accepted. Alex's paid a $2,000 cash advance to Business Solutions. 15 Purchased $1,500 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 $5,775 cash. 22- Took the week off for the holidays. 26 28 Received $3,600 cash from Gomez Co. on its receivable. 29 Reimbursed S. Rey for business automobile mileage (500 miles at $0.23 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 $640 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, 2018 4. Prepare an income statement for the three months ended December 31, 2018 5. Prepare a statement of retained earnings for the three months ended December 31, 2018 6. Prepare a balance sheet as of December 31, 2018 7. Record and post the necessary closing entries as of December 31, 2018 8. Prepare a post-closing trial balance as of December 31, 2018 Complete this question by entering your answers in the tabs below Req 1 Req 2B Req 3 Req 4 Req 5 Req 6 Req 7 Req 2A Req 8 Prepare adjusting entries to reflect a through f. View transaction list Journal entry worksheet 2 6 4 The December 31 inventory count of computer supplies shows $640 still Req 2A Req 4 Req 1 Req 2B Req 3 Req 5 Req 6 Req 7 Req 8 Prepare adjusting entries to reflect a through f. View transaction list View journal entry worksheet Credit General Journal Debit Transaction Computer supplies expense Computer supplies 2 Insurance expense Prepaid insurance Wages expense Wages payable 4 Depreciation expense-Computer equipment Accumulated depreciation-Computer equipment Depreciation expense-Office equipment Accumulated depreciation-Office equipment Rent expense Prenaid rent Req 4 Req 1 Req 2A Req 2B Req 3 Req 5 Req 6 Req 7 Req 8 Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger. Cash Accounts Receivable Debit Debit Date Credit Date Credit Balance Balance 13,218 17,668 21,268 Dec. 01 ec. 02 ec. 03 ec. 04 ec. 10 ec. 14 ec. 20 ec. 28 ec. 29 ec. 31 38,664Dec. 01 37,644 37,164 41,614 41,499 43,499 49,274 52,874 52,759 51,659 1,020 4,450 3,600 ec. 04 480 ec. 28 4,450 115 2,000 5,775 3,600 115 1,100 Computer Supplies Debit Prepaid Insurance Debit Date Credit Date Credit Balance Balance Dec. 01 ec. 15 ec. 31 2,645 Dec. 01 4,145 2,160 1,500 ec. 31 Prepare an adjusted trial balance as of December 31, 2018 BUSINESS SOLUTIONS Adjusted Trial Balance December 31, 2018 Debit Credit Account Title Cash Accounts receivable Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable Wages payable Unearned computer services revenue Common stock Retained earnings BUSINESS SOLUTIONS Post-Closing Trial Balance December 31, 2018 Credit Debit Cash Accounts receivable Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciation-Office equipment Computer equipment Accumulated depreciatio Accounts payable Wages payable Unearned computer services revenue Common stock Retained earnings Totals puter equipment