SP 3 Serial Problem Buisness Solutions (Algo) LO P1,P2,P3,P4,P5
SP 3 Serial Problem Business Solutions (Algo) 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 30,2021, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2021 ) follows. Business Solutions had the following transactions and events in December 2021 . December 2 Paid $935 CaBh to Hillside Mall for Business Solutions's ahare of mall advertising costa. Decenber 3 Paid $460 cash for ainor repairi to the company's conputer. December 4 Received $4,650 cash from Alex's Engineering Conpany for the receivable from Noveober. December 10 paid cakh to Lyn Addio for aix dayn of work at the rate of $100 per day. Decenber 14 Notified by Alex's Engineering Conpany that Business solutions's bid of $6,000 on a proposed project bas been accepted. Alex's paid a $2,200 eash advance to Baniness solutiona. December 15 purchased $1,700 of computer supplies on eredit from Harrin office Produets. Decenber 16 Sent a reminder to coeez Company to pay the fee for servicen recorded on Noveaber 8. December 20 completed a project for tiu Corporation and received $6,475cath. December 2226 Took the weok off for the holidaya. December 28 Meceived $3,300 eash fron Coes Conpany on its receivable. becember 29 Relmbursed s. Rey for business automobile nileage (400 miles at 50.29 per aile). December 31 paid $1,100 cash for dividends. The following additional facts are collected for use in making odjusting 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 avalable. 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 $100 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. Post those entries to the accounts in the ledgec, 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 31,2021. 4. Prepare an income statement for the three months ended December 31, 2021. 5. Prepare a statement of retained earnings for the three months ended December 31, 2021. 6. Prepare a classified balance sheet as of December 31,2021 . 7. Record the necessary closing entries as of December 31,2021. 8. Prepare a post-closing trial balance as of December 31,2021 . Complete this question by entering your answers in the tabs below. Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) first account field.) Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger. Prepare an income statement for the three months ended December 31, 2021. Complete this question by entering your answers in the tabs below. Prepare a statement of retained earnings for the three months ended December 31,2021. Plant assets Journal entry worksheet Record the entry to close the revenue account(s). Note: Enter debits before credits. Record the entry to close the expense account(s). Note: Enter debits before credits. Journal entry worksheet Record the entry to close the Income summary account. Note: Enter debits before credits. Journal entry worksheet 1 Record the entry to close the dividends account. Note: Enter debits before credits. Prepare a post-closing trial balance as of December 31,2021
