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. Account Title Debit Credit 101 Cash $ 38,964 106 Accounts receivable 13,018 126 Computer supplies 2,545 128 Prepaid insurance 2,160 131 Prepaid rent 2,900 163 Office equipment 8,600 164 Accumulated depreciation-office equipment 167 Computer equipment 20,400 168 Accumulated depreciation-Computer equipment 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue 307 Common stock 64,000 318 Retained earnings 319 Dividends 6,600 403 Computer services revenue 37,039 612 Depreciation expense-Office equipment @ 613 Depreciation expense-Computer equipment @ 623 Wages expense 2,475 637 Insurance expense 640 Rent expense 652 Computer supplies expense 655 Advertising expense 1,708 676 Mileage expense 684 677 Miscellaneous expenses 190 684 Repairs expense-Computer 795 Totals $101,039 $101,039 0 Business Solutions had the following transactions and events in December 2019. Dec. 2 Paid $940 cash to Hillside Mall for Business Solutions' share of mall advertising costs. 3 Paid $470 cash for minor repairs to the company's computer. 4 Received $4,650 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 $7,600 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. 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 $6,175 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 $0.27 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 $670 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. Req 1 Req 2A Req 2B Req3 Req 4 Req 5 Req 6 Req 7 Req 8 Prepare journal entries to record each of the December transactions and events for Business Solutions. (If no entry transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet No General Journal Debit Credit Date Dec 02 940 Advertising expense Cash 940 2 Dec 03 470 Repairs expense-Computer Cash 470 3 Dec 04 4,650 Cash Accounts receivable 4,650 4 Dec 10 Wages expense 720 Cash 720 5 Dec 14 2,000 Cash Unearned computer services revenue 2,000 5 Dec 14 Cash 2,000 Unearned computer services revenue 2,000 6 Dec 15 2,000 Computer supplies Accounts payable 2,000 7 Dec 16 No journal entry required 8 Dec 20 6,175 Cash Computer services revenue 6,175 9 Dec 28 Cash 3,400 Accounts receivable 3,400 10 Dec 29 108 Mileage expense Cash 108 11 Dec 31 Dividends 1,300 Cash 1,300 Req 1 Req 2A Req 2B Reg 3 Req 4 Reg 5 Req 6 Reg 7 Req 8 Prepare adjusting entries to reflect a through f. View transaction list Journal entry worksheet The December 31 inventory count of computer supplies shows $670 still available. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Computer supplies Req 1 Reg 2A Req 2B Reg 3 Reg 4 Reg 5 Reg 6 Req 7 Reg 8 Post the journal entries to record each of the December transactions from Requirement 1 and adjusting entries from Requirement 2A Requirement 7, post the closing entries to the general ledger accounts. 101: Cash Debit 106: Accounts Receivable Debit Credit Date Credit Balance Balance 38,964 Date Dec, 01 Dec. 01 13,018 126: Computer Supplies Debit Credit 128: Prepaid Insurance Debit Credit Date Balance 2,545 Date Dec. 01 Balance 2,160 Dec. 01 Reg 1 Req 2A Reg 2B Reg 3 Reg 4 Reg 5 Reg 6 Rec Credit Prepare an adjusted trial balance as of December 31, 2019. BUSINESS SOLUTIONS Adjusted Trial Balance December 31, 2019 Account Title Debit 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 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 Totals $ 0 $ 0 Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req3 Req 4 Req 5 Req6 Rec Prepare an income statement for the three months ended December 31, 2019. BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2019 Revenue Expenses Total expenses 0 Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req3 Req 4 Req 5 Req 6 Rec Prepare a statement of retained earnings for the three months ended December 31, 2019. BUSINESS SOLUTIONS Statement of Retained Earnings For Three Months Ended December 31, 2019 Retained earnings, October 1, 2019 0 Retained earnings, December 31, 2019 $ 0 Prev 1 of 1 Next > Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Req 2B Reg 3 Req 4 Req 5 Reg 6 Re Prepare a balance sheet as of December 31, 2019. BUSINESS SOLUTIONS Balance Sheet December 31, 2019 Assets 0 0 0 Total Assets Liabilities 0 Total Liabilities Equity $ 0 Total equity Total Liabilities and Equity S 0 Req5 Req 7 he Keu hey Credit Prepare a post-closing trial balance as of December 31, 2019. BUSINESS SOLUTIONS Post-Closing Trial Balance December 31, 2019 Debit 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 Totals 0 $ $