SP $3$ Serial Problem Business Solutions $($Algo$)$ LO P$1,$ P$2,$ P$3,$ P$4,$ P$5$

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.

$\backslash$table$[[$Number$,$Account Title,Debit,Credit$],[,$Cash,$$33,664,],[106-,$Accounts receivable,$12,918,],[126,$Computer supplies,$2,645,],[128,$Prepaid insurance,$2,160,],[,$Prepaid rent,$3,180,],[,$office equipment,$8,500,,],[,$Accumulated depreciation$-$office equipment,,$$0],[167-1-,$Computer equipment,$22,800,],[168,$Accumulated depreciation$-$Computer equipment,,$0],[201-2,$Accounts payable,,$0],[210,$Wages payable,,$],[236,$Unearned computer services revenue,,$0],[,$Common stock,,$68,000],[318,$Retained earnings,,$0],[319,$Dividends,$6,500,],[,$Computer services revenue,,$34,719],[612,$Depreciation expense$-$office equipment,$0,],[613,$Depreciation expense$-$Computer equipment,$0,],[,$Wages expense,$2,125,],[,$Insurance expense,$0,],[640,$Rent expense,$0,],[652,$Computer supplies expense,$0,],[655,$Advertising expense,$1,678,2,-,,],[676,$Mileage expense,$644,],[677-2+2-2-1,$Miscellaneous expenses,$160,],[684,$Repairs expense$-$Computer,$745,],[901,$Income summary,,$0],[$Totals$,$$$102,719,102,719]]$

Business Solutions had the following transactions and events in December $2021.$ Journal entry worksheet

$2$

$3$

$4$

$5$

$6$

The December $31$ inventory count of computer supplies shows $$630$ still

available.

Note: Enter debits before credits.

Clear entry

View general joumal Business Solutions had the following transactions and events in December $2021.$

December $2$ Paid $$965$ cash to Hillside Ma$11$ for Business Solutions's share of mall advertising costs.

December $3$ Paid $$440$ cash for minor repairs to the company's computer.

December $4$ Received $$4,350$ cash from Alex's Engineering Company for the receivable from November.

December $10$ Paid cash to Lyn Addie for six days of work at the rate of $$120$ per day.

December $14$ Notified by Alex's Engineering Company that Business Solutions's bid of $$7,600$ on a proposed project has been

accepted. Alex's paid a $$2,400$ cash advance to Business Solutions.

December $15$ Purchased $$1,400$ of computer supplies on credit from Harris office Products.

December $16$ Sent a reminder to Gomez Company to pay the fee for services recorded on November $8.$

December $20$ Completed a project for Liu Corporation and received $$5,775$ cash.

December $22-26$ Took the week off for the holidays.

December $28$ Received $$3,400$ cash from Gomez Company on its receivable.

December $29$ Reimbursed S$.$ Rey for business automobile mileage $(400$ miles at $$0\mathrm{.}30$ per mile$).$

December $31$ Paid $$1,100$ cash for 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 $$630$ still availlable.

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:

Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger.

$2-$a$.$ Prepare adjusting entries to refiect a through $f.$

$2-$b$.$ Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger.

Prepare an adjusted trial balance as of December $31,2021.$

Prepare an income statement for the three months ended December $31,2021.$

Prepare a statement of retained earnings for the three months ended December $31,2021.$

Prepare a classified balance sheet as of December $31,2021.$

Record the necessary closing entries as of December $31,2021.$

Prepare a post$-$closing trial balance as of December $31,2021.$