Serial Problem Business Solutions LO P1, P2, P3, P4, P5 After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30, 2017 unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2017) follows. Credit Debit $38.464 12,718 2,545 2,160 3,000 Account Title No. 101 Cash Accounts receivable Computer supplies Prepaid insurance Prepaid rent office equipment Accumulated depreciation-0ffice equipment Computer equipment Accumulated depreciation--Computer equipment Accounts payable Wages payable Unearned computer services revenue Common stock Retained earnings Dividends Computer services revenue 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 106 126 128 131 9,eee 163 164 23,600 167 168 201 210 236 78,000 307 318 5,800 319 32,844 403 612 e 613 2,400 623 637 640 652 1,658 655 614 676 160 677 725 684 $102,844 $102,844 Totals Business Solutions had the followina transactions and events in December 2017 Business Solutions had the following transactions and events in December 2017 2 Paid $960 cash to Hillside Mall for Business Solutions' share of mall advertising costs. 3 Paid $410 cash for minor repairs to the company's computer. 4 Received $4,250 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 $105 per day. 14 Notified by Alex's Engineering Co. that Business Solutions' bid of $7,500 on a proposed project has been accepted. Alex's paid a $2,500 cash advance to Business Solutions. 15 Purchased $1,800 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 $6,225 cash. 22- Took the week off for the holidays. Dec. 26 28 Received $3,600 cash from Gomez Co. on its receivable. 29 Reimbursed S. Rey for business automobile mileage (600 miles at $0.29 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 $680 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 value. f. Three of the four months' prepaid rent has 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, 2017 4. Prepare an income statement for the three months ended December 31, 2017 5. Prepare a statement of retained earnings for the three months ended December 31, 2017 6. Prepare a balance sheet as of December 31, 2017 7. Record and post the necessary closing entries as of December 31, 2017 8. Prepare a post-closing trial balance as of December 31, 2017. Req 1 Req 2A Req 2B Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Prepare adjusting entries to reflect a through f. View transaction list Journal entry worksheet 1 2 > 3 4 5 6 The December 31 inventory count of computer supplies shows $680 still available. Note: Enter debits before credits. Debit Credit General Journal Transaction Computer supplies expense Computer supplies a View general journal Clear entry Record entry Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3 Req 4 Req 5 Req 6 Req 7 Prepare adjusting entries to reflect a through f View transaction list Journal entry worksheet 1 2 3 4 6 5 Three months have expired since the 12-month insurance premium paid was in advance. Note: Enter debits before credits. Transaction General Journal Debit Credit b. View general journal Clear entry Record entry Req 1 Req 2A Req 2B Req 3 Req 4 Req 5 Req 6 Req 7 Req Prepare adjusting entries to reflect a through f View transaction list Journal entry worksheet 2 4 5 6 As of December 31, Lyn Addie has not been paid for four days of work at $105 per day. Note: Enter debits before credits. Transaction General Journal Debit Credit C View general journal Clear entry Record entry Req 1 Req 2A Req 2B Req 3 Req 4 Req 5 Req 6 Req 7 Prepare adjusting entries to reflect a through f. View transaction list Journal entry worksheet 1 2 4 5 > The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value. Note: Enter debits before credits. Transaction General Journal Debit Credit e. Clear entry View general journal Record entry Req 1 Req 2A Req 2B Req 3 Req 4 Req 5 Req 6 Req 7 Prepare adjusting entries to reflect a through f. View transaction list Journal entry worksheet K 2 3 5 6 Three of the four months' prepaid rent has expired. Note: Enter debits before credits. Credit Debit General Journal Transaction View general journal Clear entry Record entry Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger. Accounts Receivable Cash Debit Credit Balance Date Date Debit Credit Balance 38,464 Dec. 01 Dec. 01 12,718 Computer Supplies Prepaid Insurance Date Debit Credit Balance Date Debit Balance Credit Dec. 01 2.545 Dec. 01 2,160 Prepaid Rent Office Equipment Date Debit Balance Credit Date Debit Credit Balance Dec. 01 3,000 Dec. 01 9,000 Accumulated Depreciation-Office Equipment Computer Equipment Date Debit Credit Balance Date Debit Credit Balance Dec. 01 Dec. 01 C 23,600 Prepaid Rent Office Equipment Date Debit Credit Balance Date Debit Credit Balance Dec. 01 3,000 Dec. 01 9,000 Accumulated Depreciation-Office Equipment Computer Equipment Date Debit Credit Balance Date Debit Credit Balance Dec. 01 0 Dec. 01 23,600 Accumulated Depreciation-Computer Equipment Accounts Payable Date Debit Credit Balance Date Debit Credit Balance Dec. 01 Dec. 01 0 Wages Payable Unearned Computer Services Revenue Date Debit Credit Balance Date Debit Credit Balance Dec. 01 Dec. 01 0 Common Stock Retained Earnings Date Credit Date Balance Debit Balance Debit Credit Dec. 01 70.000 Dec. 01 0 Computer Services Revenue Dividends Date Balance Debit Credit Balance Date Debit Credit Dividends Computer Services Revenue Date Debit Credit Balance Date Debit Credit Balance Dec. 01 5,800 Dec. 01 32,844 Depreciation Expense -Office Equipment Depreciation Expense-Computer Equipment Date Debit Credit Balance Date Debit Credit Balance Dec. 01 0 Dec. 01 0 Wages Expense Insurance Expense Date Debit Credit Balance Date Debit Credit Balance Dec. 01 Dec. 01 2,400 0 Rent Expense Computer Supplies Expense Date Debit Credit Balance Date Debit Credit Balance Dec. 01 Dec. 01 0 Advertising Expense Mileage Expense Date Debit Credit Balance Date Debit Credit Balance Dec. 01 1,658 Dec. 01 614 Dividends Computer Services Revenue Date Debit Credit Balance Date Debit Credit Balance Dec. 01 Dec. 01 5,800 32,844 Depreciation Expense-Office Equipment Depreciation Expense Computer Equipment Date Debit Credit Balance Date Debit Credit Balance Dec. 01 0 Dec. 01 0 Wages Expense Insurance Expense Date Debit Credit Balance Date Debit Credit Balance Dec. 01 Dec. 01 2.400 0 Rent Expense Computer Supplies Expense Debit Credit Date Date Balance Debit Credit Balance Dec. 01 Dec 01 Advertising Expense Mileage Expense Balance Date Debit Credit Balance Date Debit Credit Dec 01 Dec. 01 614 1,658 Rent Expense Computer Supplies Expense Date Debit Credit Balance Date Debit Credit Balance Dec. 01 Dec. 01 C Advertising Expense Mileage Expense Date Debit Credit Balance Date Debit Credit Balance Dec. 01 Dec. 01 614 1,658 Miscellaneous Expense Repairs Expense-Computer Balance Balance Date Debit Credit Debit Credit Date 725 Dec. 01 Dec. 01 Income Summary Balance Credit Debit Date Req 3> Req 2A 160 Complete this question by entering your answ ers in the tabs below, Req 1 Req 2A Req 2B Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Prepare an income statement for the three months ended December 31, 2017. BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2017 Revenue Expenses Total expenses Reg 1 Req 2A Req 2B Req 3 Req 4 Req 5 Req 6 Req 7 Reg 8 a statement of retained earnings for the three months ended December 31, 2017. Prepare BUSINESS SOLUTIONS Statement of Retained Earnings For Three Months Ended December 31, 2017 Retained earnings, October 1, 2017 0 S 0 Retained earnings, December 31, 2017 Req 6> Req 5