Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Date General Journal December 02 Advertising expense Cash 2 December 03 Repairs expense-Computer Cash Debit Credit 1,025 1,025 500 500 December 04 Cash 3,950 Accounts receivable 3,950 December 10 Wages expense Cash 750 750 5 December 14 Cash 1,500 Uneamed computer services revenue 1.500 6 9 December 15 7 December 16 Computer supplies Cash No journal entry required No journal entry required e December 20 Cash Computer services revenue December 28 Cash Accounts receivable 10 December 29 Mileage expense Cash 11 December 31 Dividends Cash 3 1.100 1.100 5.625 5,825 3,000 3.000 102 192 1.500 1,500 Required 1 Required 2A Required 2B Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Prepare adjusting entries to reflect a through f. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No 1 Transaction General Journal m 9. Computer supplies expense Computer supplies 2 b 3 C 5 AXA CLI Insurance expense Prepaid insurance Wages expense Wages payable Depreciation expense-Computer equipment Accumulated depreciation-Computer equipment Accumulated depreciation-Office equipment Accumulated depreciation-Office equipment f Rent expense Prepaid rent Debit Credit 3,065 3,085 555 555 500 500 1.250 1,250 500 500X 2.475 2.475 Post the journal entries to record each of Required 3 Required? Required 8 December transactions, adjusting entries to the scesunts in the ledger. Debit Credit Balance December 04 9 1.025 36.739 40.689 December 10 1300 Q 41.439 December 5 5.625 C December 28 # 3.000 December t 128: Computer Supplies Debit 1.100 1300 9 108: Accounts Receivable Dobit Credit Balance 12619 Credit Balance Data Debit Balance 2.545 2.220 131: Propaid Ront Debit Gradie Balance Date December 01 184: Accumulated Depreplation-offioa Equipment Dobt Credit Balance 188: Accumulated Dsproclation-Computer Equlpment Dobit Date 210 Wagos Payable Dobit Cradil Balance Date December 01 307: Common Stock Debit Data December 01 183: Office Equipment Dabit Credit Salanoai 187: Computer Equipment Dabit Creat Balanoa 201: Accounts Payable 288: Unearned Computer Sarvloes Revenue Dablt ROURIRE Balanca $13: Rotainad Earnings Balance Data Dabit Credit Balance $18: Dividende Dobit Balance 403 Computer Services Revenue Dobit Credit Balance 7100 812 Dapreolation Expance Equipment Balance 813: Dapreolation Expence-Computer Equipment Dobit Credit Balance Required 1 Required 2A Required 2B Required 3 Required 4 Required 5 Req Prepare an adjusted trial balance as of December 31, 2021. BUSINESS SOLUTIONS Adjusted Trial Balance December 31, 2021 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 Debit Credit $ 47.272 X 5,668 580 1,665 825 8,000 69 500 X 20,000 1,250 1,500 73,000 Retained earnings Dividends 7,100 Computer services revenue 31,284 Depreciation expense-Office equipment 500 Depreciation expense-Computer equipment 1,250 Wages expense 3,375 X Insurance expense 555 Rent expense 2,475 Computer supplies expense 3.065 Advertising expense 2,753 Mileage expense 896 Miscellaneous expenses 250 Repairs expense-Computer 1,305 Totals $ 107.534 $ 107,534 Required 1 Required 2A Required 2B Required 3 Required 4 Required 5 Require Prepare an income statement for the three months ended December 31, 2021. BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2021 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 expense-Computer Total expenses Net income 500 pc 1,250 3,875 555 2,475 3,065 2,753 896 (250) (1,305) $ 31,284 13.814 2 $ 17.470 Required 1 Required 2A Required 2B Required 3 Required 4 Required 5 Prepare a statement of retained earnings for the three months ended December BUSINESS SOLUTIONS Statement of Retained Earnings For Three Months Ended December 31, 2021 Retained earnings, October 1, 2021 Add: Net income Less: Dividends Retained earnings, December 31, 2021 14.360 x 14,360 7,100 S 7,260 Required 1 Required 2A Required 2B Required 3 Required 4 Required 5 Required 6 Prepare a classified balance sheet as of December 31, 2021. BUSINESS SOLUTIONS Balance Sheet December 31, 2021 Current assets Cash Accounts receivable Computer supplies Prepaid insurance Prepaid rent Total assets Assets Plant assets Office equipment Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable Wages payable Unearned computer services revenue Common stock Retained earnings Total equity Total liabilities and equity Liabilities $ 47,272 x 5,668 580 1,665 825 56,010 8,000 500X 7,500 20,000 1,250 18.750 26.250 S 82,260 S 500x 500 500X 1,500 Equity 73,000 7,260 x 80,260 81.760 Required 1 Required 2A Required 2B Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Record the necessary closing entries as of December 31, 2021. No Date General Journal 1 December 31 Computer services revenue Income summary 2 December 31 Income summary Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense 3 Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer December 31 Income summary Retained earnings 4 December 31 Retained earnings Dividends Debit Credit 31,284 31,284 16,924 x 500 x 1,250 3.875 555 2,475 3,065 2,753 896 250 1,305 14.360x 14,360 x 7,100 7,100 Required 1 Required 2A Required 2B Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Prepare a post-closing trial balance as of December 31, 2021. BUSINESS SOLUTIONS Cash Accounts receivable Computer supplies Prepaid insurance Prepaid rent Post-Closing Trial Balance December 31, 2021 Office equipment Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable Wages payable Unearned computer services revenue Common stock Retained earnings Totals Debit Credit $ 47,272x 5,668 580 1,665 825 8,000 500 X 20,000 1,250 500 1,500 73,000 7,260 X 84,010 84,010 After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30, 2021, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2021) follows. Number 101 Cash Account Title Accounts receivable 106 126 Computer supplies 128 Prepaid insurance 131 Prepaid rent 163 Office equipment 164 167 Computer equipment 168 Accumulated depreciation-Office equipment 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 612 613 623 Wages expense 637 640 Rent expense 652 Depreciation expense-Office equipment Depreciation expense-Computer equipment Insurance expense Computer supplies expense 655 Advertising expense 676 Mileage expense 677 Miscellaneous expenses 684 901 Repairs expense-Computer Income summary Totals Debit $ 38,264 Credit 12,618 2,545 2,220 3,300 8,000 $ 0 20,000 0 0 73,000 0 5,600 25,659 0 0 2,625 0 1,728 704 250 805 0 $ 98,659 $ 98,659 Business Solutions had the following transactions and events in December 2021. December 2 Paid $1,025 cash to Hillside Mall for Business Solutions's share of mall advertising costs. December 3 Paid $500 cash for minor repairs to the company's computer. December 4 Received $3,950 cash from Alex's Engineering Company for the receivable from November. December 10 Paid cash to Lyn Addie for six days of work at the rate of $125 per day. December 14 Notified by Alex's Engineering Company that Business Solutions's bid of $7,000 on a proposed project has been accepted. Alex's paid a $1,500 cash advance to Business Solutions. December 15 Purchased $1,100 of computer supplies on credit from Harris Office Products. December 16 Sent a reminder to Gomez Company to pay the fee for services recorded on November 8. December 20 Completed a project for Liu Corporation and received $5,625 cash. December 22-26 Took the week off for the holidays. December 28 Received $3,000 cash from Gomez Company on its receivable. December 29 Reimbursed S. Rey for business automobile mileage (600 miles at $0.32 per mile). December 31 Paid $1,500 cash for dividends. 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 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. The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company's first three months. 1. The December 31 inventory count of computer supplies shows $580 still available. >. Three months have expired since the 12-month insurance premium was paid in advance. :. As of December 31, Lyn Addie has not been paid for four days of work at $125 per day. 1. 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.