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 joumal entries to record each of the December transactions from Requirement 1 and adjusting entries from Requirement 2A. After completing Requirement 7. post the closing entries to the general ledger accounts. 3. Prepare an adjusted trial balance as of December 31,2020. 4. Prepare an income statement for the three months ended December 31, 2020, 5. Prepare a statement of retained earnings for the three months ended December 31, 2020. 6. Prepare a balance sheet as of December 31,2020 7. Record the necessary closing entries as of December 31, 2019 and then post the closing entries to the general ledger in Requirement 2B. 8. Prepare a post-closing trial balance as of December 31, 2020. Journal entry worksheet Record the closure of revenue account(s). Note: Enter debits before credits. Journal entry worksheet The December 31 inventory count of computer supplies shows $600 still available. Note: Enter debits before credits. After the success of the company's first two months. Santana Rey continues to operate Business Solutions. The November 30, 2020 . unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2020) follows. Business Solutions had the following transactions and events in December 2020. BUSINESS SOLUTIONS Adjusted Trial Balance December 31,2020 \begin{tabular}{|c|c|c|} \hline Account Title & Debit & Credit \\ \hline \multicolumn{3}{|l|}{ Cash } \\ \hline \multicolumn{3}{|l|}{ Accounts receivable } \\ \hline \multicolumn{3}{|l|}{ Computer supplies } \\ \hline \multicolumn{3}{|l|}{ Prepaid insurance } \\ \hline \multicolumn{3}{|l|}{ Prepaid rent } \\ \hline \multicolumn{3}{|l|}{ Office equipment } \\ \hline \multicolumn{3}{|l|}{ Accumulated depreciation-Office equipment } \\ \hline \multicolumn{3}{|l|}{ Computer equipment } \\ \hline \multicolumn{3}{|l|}{ Accumulated depreciation-Computer equipment } \\ \hline \multicolumn{3}{|l|}{ Accounts payable } \\ \hline \multicolumn{3}{|l|}{ Wages payable } \\ \hline \multicolumn{3}{|l|}{ Unearned computer services revenue } \\ \hline \multicolumn{3}{|l|}{ Common stock } \\ \hline \multicolumn{3}{|l|}{ Retained earnings } \\ \hline \multicolumn{3}{|l|}{ Dividends } \\ \hline \multicolumn{3}{|l|}{ Computer services revenue } \\ \hline \multicolumn{3}{|l|}{ Depreciation expense - Office equipment } \\ \hline \multicolumn{3}{|l|}{ Depreciation expense - Computer equipment } \\ \hline Wages expense & & \\ \hline \end{tabular} Journal entry worksheet 5678 Paid $950 cash to Hillside Mall for Business Solutions's share of mall advertising costs. Note: Enter debits before credits. \begin{tabular}{|l|c|r|r|} \hline \multicolumn{4}{|c|}{ 131: Prepaid Rent } \\ \hline Date & Debit & Credit & Balance \\ \hline December 01 & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ 163: Office Equipment } \\ \hline Date & Debit & Credit & Balance \\ \hline December 01 & & & 8,200 \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ 164: Aceumulated Depreciation-Office Equipment } \\ \hline Date & Debit & Credit & Balance \\ \hline December 01 & & & 0 \\ \hline & & & \\ \hline & & & \\ \hline \multicolumn{4}{|c|}{ 168: Accumulated Depreciation-Computer Equipment } \\ \hline Date & Debit & Credit & Balance \\ \hline December 01 & & & 0 \\ \hline 7 & & & \\ \hline & & & \\ \hline \multicolumn{4}{|c|}{ 210: Wages Payable } \\ \hline Date & Debit & Credit & Balance \\ \hline December 01 & & & 0 \\ \hline on. & & & \\ \hline & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ 167: Computer Equipment } \\ \hline Date & Debit & Credit & \multicolumn{1}{|c|}{ Balance } \\ \hline December 01 & & & 20,400 \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ 201: Accounts Payable } \\ \hline Date & Debit & Credit & Balance \\ \hline December 01 & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} 236: Unearned Computer Services Revenue \begin{tabular}{|l|l|l|l|} \hline \multicolumn{1}{|c|}{ Date } & Debit & Credit & Balance \\ \hline December 01 & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} 307: Common Stock 318: Retained Earnings \begin{tabular}{|l|l|l|} \hline Unearned computer services revenue & & \\ \hline Common stock & & \\ \hline Retained earnings & & \\ \hline Dividends & & \\ \hline Computer services revenue & & \\ \hline Depreciation expense-Office equipment & & \\ \hline Depreciation expense-Computer equipment & & \\ \hline Wages expense & & \\ \hline Insurance expense & & \\ \hline Rent expense & & \\ \hline Computer supplies expense & & \\ \hline Advertising expense & & \\ \hline Mileage expense & & \\ \hline Miscellaneous expenses & & \\ \hline Repairs expense Computer & & \\ \hline Totals & & \\ \hline \end{tabular} BUSINESS SOLUTIONS Post-Closing Trial Balance December 31, 2020 \begin{tabular}{|l|l|l|} \hline Cash & & \\ \hline Accounts receivable & & \\ \hline Computer supplies & & \\ \hline Prepaid insurance & & \\ \hline Prepaid rent & & \\ \hline Office equipment & & \\ \hline Accumulated depreciation-Office equipment & & \\ \hline Computer equipment & & \\ \hline Accumulated depreciation-Computer equipment & & \\ \hline Accounts payable & & \\ \hline Wages payable & & \\ \hline Unearned computer services revenue & \\ \hline Common stock & \\ \hline Retained earnings & \\ \hline Totals & \\ \hline \end{tabular} Req 7 BUSINESS SOLUTIONS Statement of Retained Earnings For Three Months Ended December 31, 2020 Retained earnings, October 1,2020 Retained earnings, December 31, 2020 Req 4 \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline \multicolumn{4}{|c|}{ 101: Cash } & \multicolumn{4}{|c|}{ 106: Accounts Receivable } \\ \hline Date & Debit & Credit & Balance & Date & Debit & Credit & Balance \\ \hline December 01 & & & 38,764 & December 01 & & & 13,418 \\ \hline & & & & & & & \\ \hline & & & & & & & \\ \hline & & & + & & & & \\ \hline & & & & & & & \\ \hline & & & & & & & \\ \hline & & & & & & & \\ \hline & & & & & & & \\ \hline & & & & & & & \\ \hline & & & & & & & \\ \hline & Compute & & & & Prepaid I & & \\ \hline Date & Debit & Credit & Balance & Date & Debit & Credit & Balance \\ \hline December 01 & & = & 2,545 & December 01 & & & 2,100 \\ \hline & & & & & & & \\ \hline & & & & & & & \\ \hline & & & & & & & \\ \hline \end{tabular} Business Solutions had the following transactions and events in December 2020. Deceaber 2 Paid 5950 cash to Hillside Mall for Business Solutions's share of nall advertising costs. Decenber 3 Paid $460 cash for ainor repairs to the company's computer. Decenber 4 Received $4,150 cash from Alex' Engineering Co. for the receivable from Novenber. December 10 paid cash to lyn Addie for six days of work at the rate of $105 per day. Decenber 14 Motified by Alex's Enginewring Coepany that Business Solutions's bid of $7,400 on a proposed project has been accepted. Alex's paid a $2,400 cash advance to Business solutions. Decenber 15 Purchased $1,800 of computer supplies on credit fron Harris office Products. December 16 Sent a reainder to Gomez Company to pay the fee for services recorded on November 8. December 20 Completed a project for lifu Corporation and received $6,425 cash. Deceaber 22-26 Took the week off for the holidays. Decenber 28 Received $3,100 cash fron Goaez Conpany on its receivable. Decenber 29 Reinbursed 5 . Rey for business automobile mileage ( 500 miles at 50.25 per mile). Decenber 31 The company paid $1,500 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 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 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