Serial Problem Business Solutions LO P1, P2, P3, P4, P5, P6 After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30, 2019, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2019) follows. No. 101 Account Title Cash 106 Accounts receivable 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 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 Totals Debit Credit $ 38,664 13,218 2,645 2,040 2,920 8,200 0 23,600 0 0 0 0 66,000 0 6,600 37,564 0 2,450 0 0 0 1,648 614 180 785 $103,564 $103,564 Business Solutions had the following transactions and events in December 2019. Dec. 2 Paid $970 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 $4,550 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 $120 per day. 14 Notified by Alex's Engineering Co. that Business Solutions' bid of $7,300 on a proposed project has been accepted. Alex's paid a $2,000 cash advance to Business Solutions. 15 Purchased $2,000 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 $6,025 cash. 22- Took the week off for the holidays. 26 28 Received $3,400 cash from Gomez Co. on its receivable. 29 Reimbursed S. Rey for business automobile mileage (400 miles at $0.28 per mile). 31 The company paid $1,300 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 $590 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 $120 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 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, 2019. 4. Prepare an income statement for the three months ended December 31, 2019. 5. Prepare a statement of retained earnings for the three months ended December 31, 2019. 6. Prepare a balance sheet as of December 31, 2019. 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, 2019. 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 Req 8 Post the journal 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. 101: Cash 106: Accounts Receivable Date Debit Credit Balance Date Debit Credit Balance Dec. 01 38,664 Dec. 01 13,218 Dec. 02 970 37,694 Dec. 04 4,550 8,668 Dec. 03 410 37,284 Dec. 28 3,400 5,268 Dec. 04 4,550 41,834 Dec. 10 720 41,114 101: Cash Date Debit Credit Balance Date Dec. 01 38,664 Dec. 01 Dec. 02 970 37,694 Dec. 04 Dec. 03 410 37,284 Dec. 28 Dec. 04 4,550 41,834 Dec. 10 720 41,114 Dec. 14 2,000 43,114 Dec. 20 6,025 49,139 Dec. 28 3,400 52,539 Dec. 29 112 52,427 Dec. 31 1,300 51,127 Dec. 01 Dec. 15 Dec. 31 Date Date Dec. 01 Dec. 31 126: Computer Supplies Debit Credit Balance Date 2,645 Dec. 01 2,000 4,645 Dec. 31 4,055 590 131: Prepaid Rent Debit Credit Balance Date 2,190 2,920 730 Dec. 01 164: Accumulated Depreciation-Office Equipment Date Dec. 01 Dec. 31 Dec. 01 Debit Credit 410 Balance Date 0 410 Dec. 01 168: Accumulated Depreciation-Computer Equipment Date Debit Credit Balance Date 0 Dec. 01 106: Accounts Receivable Debit Credit Balance 13,218 4,550 8,668 3,400 5,268 128: Prepaid Insurance Debit Credit 163: Office Equipment Debit Balance 480 2,040 1,560 Credit Balance 8,200 167: Computer Equipment Debit Credit Balance 23,600 201: Accounts Payable Debit Credit Balance 0 168: Accumulated Depreciation-Computer Equipment Date Dec. 01 Dec. 31 Dec. 01 Dec. 31 Dec. 01 Dec. 01 Dec. 31 Dec. 31 Date Date Debit Credit 210: Wages Payable Debit 1,475 Credit 307: Common Stock Debit 319: Dividends Date Debit 1,300 480 Balance Date 0 Dec. 01 1,475 Dec. 15 Balance Date 0 Dec. 01 480 Dec. 14 Credit Balance Date 66,000 Dec. 01 Dec. 31 Dec. 31 Credit Balance Date 6,600 7,900 Dec. 01 612: Depreciation Expense-Office Equipment Date Dec. 01 Debit Credit 623: Wages Expense 201: Accounts Payable Debit Credit Balance 0 2,000 2,000 236: Unearned Computer Services Revenue Debit Credit 318: Retained Earnings Debit Balance 0 2,000 2,000 Credit Balance 0 403: Computer Services Revenue Debit Credit Balance 37,564 613: Depreciation Expense-Computer Equipment Balance Date 0 Dec. 01 Debit Credit 637: Insurance Expense DALIA Balance 0 Dalama Date Dec. 01 Dec. 01 Date Date Dec. 01 Dec. 01 Date Date 623: Wages Expense Debit Credit Balance Date 2,450 Dec. 01 640: Rent Expense Debit Credit Balance Date 0 Dec. 01 655: Advertising Expense Debit 637: Insurance Expense Debit Credit Balance 0 652: Computer Supplies Expense Debit Credit Balance 0 Credit Balance Date 676: Mileage Expense Debit Credit Balance 1,648 Dec. 01 614 677: Miscellaneous Expense Debit Credit Balance Date 180 Dec. 01 901: Income Summary Debit Credit Balance 684: Repairs Expense-Computer Debit Credit Balance 785