Serial Problem Business Solutions LO P1, P2, P3, P4, P5, P6 163 0 168 After the success of the company's first two months, Santano 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 181 Cash $38, 264 106 Accounts receivable 12,618 126 Computer supplies 2,545 128 Prepaid insurance 2,220 131 Prepaid rent 3,300 office equipment 8,000 164 Accunulated depreciation office equipment $ 167 Conputer equipment Accumulated depreciation Computer equipment 20,000 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue 307 Cominon stock 73,000 318 Retained earnings 0 Dividends 5,600 403 Computer services revenue 25,650 612 Depreciation expense-office equipment 613 Depreciation expense-Computer equipment 623 Wages expense 2,625 637 Insurance expense o 640 Rent expense 652 Computer supplies expense 0 Advertising expense 1,728 676 Mileage expense 704 677 Miscellaneous expenses 250 684 Repairs expense-Computer 805 Totals $ 98,659 $98,650 655 Business Solutions had the following transactions and events in December 2019 Dec. 2 Paid $1,025 cash to Hillside Mall for Business Solutions' share of all advertising costs. 3 Paid $500 cash for minor repairs to the company's computer. 4 Received $3,950 cash from Alex's Engineering Co. for the receivable fron November 10 Paid cash to Lyn Addie for six days of work at the rate of $125 per day 14 Notified by Alex's Engineering Co that Business Solutions' bid of $7,000 on a proposed project has been accepted. Alex's paid a 31,500 cash advance to Business Solutions 15 Purchased $1,100 of computer supplies on credit from Harris Office Products 16 Sent a reninder to Gomez Co to pay the fee for services recorded on November 8. 20 Completed a project for Liu Corporation and received $5,625 cash. 22-26 Took the week off for the holidays 28 Received 3,000 cash from Gomez co on its receivable 20 Reimbursed S. Rey for business autonobile mileage (600 miles at 80.32 per mile) 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 $580 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 $125 per day d. The computer system, acquired on October 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 t. 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 ht 2-1. Post the journal entries to record each of the December transactions from Requirement 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 Proy BB a. I ne computer system, acquirea on uctober 1, is expected to nave a four-year we with no savage value e. The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value. 1. 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 2-6. 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 28. 3. Prepare a post-closing trial balance as of December 31, 2019. Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Reg 28 Req Reg 4 Req5 Reg 6 Reg 2 Reg 8 Prepare journal entries to record each of the December transactions and events for Business Solutions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 5 6 7 11 >