Serial Problem Business Solutions LO P1, P2, P3, P4, P5

After the success of the companys first two months, Santana Rey continues to operate Business Solutions. The November 30, 2016, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2016) follows.

No. Account Title Debit Credit 101 Cash $ 38,764 106 Accounts receivable 12,918 126 Computer supplies 2,645 128 Prepaid insurance 2,160 131 Prepaid rent 3,280 163 Office equipment 8,300 164 Accumulated depreciationOffice equipment $ 0 167 Computer equipment 22,400 168 Accumulated depreciationComputer equipment 0 201 Accounts payable 0 210 Wages payable 0 236 Unearned computer services revenue 0 307 Common stock 66,000 318 Retained earnings 0 319 Dividends 5,700 403 Computer services revenue 35,779 612 Depreciation expenseOffice equipment 0 613 Depreciation expenseComputer equipment 0 623 Wages expense 2,325 637 Insurance expense 0 640 Rent expense 0 652 Computer supplies expense 0 655 Advertising expense 1,708 676 Mileage expense 654 677 Miscellaneous expenses 220 684 Repairs expenseComputer 705 Totals $ 101,779 $ 101,779

Business Solutions had the following transactions and events in December 2016.

Dec. 2 Paid $950 cash to Hillside Mall for Business Solutionss share of mall advertising costs. 3 Paid $440 cash for minor repairs to the companys computer. 4 Received $4,550 cash from Alexs 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 Alexs Engineering Co. that Business Solutionss bid of $7,100 on a proposed project has been accepted. Alexs paid a $2,500 cash advance to Business Solutions. 15 Purchased $1,400 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 $6,525 cash. 2226 Took the week off for the holidays. 28 Received $3,400 cash from Gomez Co. on its receivable. 29 Reimbursed S. Rey for business automobile mileage (600 miles at $0.32 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 companys first three months:

The December 31 inventory count of computer supplies shows $590 still available. Three months have expired since the 12-month insurance premium was paid in advance. As of December 31, Lyn Addie has not been paid for four days of work at $105 per day. The computer system, acquired on October 1, is expected to have a four-year life with no salvage value. The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value. 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2.1 Prepare adjusting entries to reflect a through f.

a) The december 31 inventory count of computer supplies shows $590 still available.

2.2 Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger.

General Ledger Accounts

3. Prepare an adjusted trial balance as of December 31, 2016.

4. Prepare an income statement for the three months ended December 31, 2016.

5. Prepare a statement of retained earnings equity for the three months ended December 31, 2016.

6. Prepare a balance sheet as of December 31, 2016.

7. Record and post the necessary closing entries for Business Solutions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

a) Record the entry to close the revenue account. b)Record the entry to close the expense accounts. c)Record the entry to close the income summary account. d)Record the entry to close the dividends accounts. 8. Prepare a post-closing trial balance as of December 31, 2016. 9) Prepare the required unadjusted trial balance dated December 31, 2016 Business Solutions Unadjusted Trial Balance December 31, 2016 10) Analyze your results For Business Solutions calculate and define the following four ratios for 12/31/2016. Use the amounts from the financial statements a. Return on assets (for beginning total assets use total assets use the initial investment to Common Stock for the start-up period only) b. Debt ratio c. Profit margin ratio (Use Computer Services Revenue as Net Sales) d. Current ratio