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. Number 101 Account Title Cash 106 Accounts receivable 126 Computer supplies 128 Prepaid insurance 131 Prepaid rent 163 Office equipment 164 Accumulated depreciation-Office equipment 167 Computer equipment 168 Accumulated depreciation-Computer equipment 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue 307 Common stock 318 Retained earnings 319 Dividends 403 Computer services revenue 612 613 Depreciation expense-Office equipment Depreciation expense-Computer equipment 623 Wages expense 637 Insurance expense 640 Rent expense 652 655 Computer supplies expense Advertising expense 676 Mileage expense 677 Miscellaneous expenses 684 Repairs expense-Computer 901 Income summary Totals Debit $ 38,864 Credit 12,918 2,645 1,980 3,300 8,200 20,000 0 0 73,000 0 6,300 26,909 0 0 2,475 0 0 0 1,698 624 190 715 $ 99,909 $ 99,909 Business Solutions had the following transactions and events in December 2021. December 2 Paid $960 cash to Hillside Mall 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 $4,050 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 $115 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 $1,900 cash advance to Business Solutions. December 15 Purchased $2,100 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 $6,225 cash. December 22-26 Took the week off for the holidays. December 28 Received $3,900 cash from Gomez Company on its receivable. December 29 Reimbursed S. Rey for business automobile mileage (400 miles at $0.25 per mile). December 31 Paid $1,400 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 $650 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 $115 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. 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 $115 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 ledger. 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. my Required 1 Required 2A Required 2B Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Prepare adjusting entries to reflect a through f. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Transaction General Journal 1 a. Computer supplies expense Computer supplies 2 b. Insurance expense Prepaid insurance 3 C. Wages expense Debit Credit 650 650 555 555 500 500 Wages payable 4 d. Depreciation expense-Computer equipment 1,250 Accumulated depreciation-Computer equipment 1,250 5 e. Depreciation expense-Office equipment Accumulated depreciation-Office equipment 400 400 6 f. Rent expense Prepaid rent 2,475 2,475 < Required 1 Required 2B > Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 28 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger. 101: Cash 106: Accounts Receivable Date December 01 Debit Credit Balance Date Debit Credit Balance 38,864 December 01 12.918 December 02 1,025 37.839 December 03 500 37,339 December 04 3,950 41,289 December 10 750 40.539 December 14 1,500 42,039 December 20 5,625 47,664 December 28 3,000 50,664 December 29 192 50,472 December 31 1,500 48.972 Date December 01 Date December 01 126: Computer Supplies Debit Credit Balance Date 2,645 December 01 131: Prepaid Rent Debit Credit Balance Date 3,300 December 01 164: Accumulated Depreciation-Office Equipment Date December 01 Debit Credit Balance Date December 01 168: Accumulated Depreciation-Computer Equipment Date December 01 Date December 01 Date December 01 Debit Credit 210: Wages Payable Debit Balance Date December 01 Credit Balance Date December 01 307: Common Stock Debit Date December 01 319: Dividends Debit Credit Balance Date 73,000 December 01 Credit Balance 6,300 Date December 01 612: Depreciation Expense-Office Equipment Date December 01 Date December 01 Date December 01 Debit Credit 623: Wages Expense Debit 128: Prepaid Insurance Debit Credit Balance 1,980 163: Office Equipment Debit Credit Balance 8.200 167: Computer Equipment Debit Credit Balance 20,000 201: Accounts Payable Debit Credit Balance 0 236: Unearned Computer Services Revenue Debit Credit 318: Retained Earnings Debit Balance 0 Credit Balance 0 403: Computer Services Revenue Debit Credit Balance 26,909 613: Depreciation Expense-Computer Equipment Balance Date December 01 Credit Balance Date 2,475 December 01 640: Rent Expense Debit Credit Balance Date 0 December 01 Date December 01 655: Advertising Expense Debit Credit Balance 1,698 Date December 01 Date December 01 677: Miscellaneous Expense Debit Credit Balance 190 Debit Credit 637: Insurance Expense Debit Balance 0 Credit Balance 652: Computer Supplies Expense Debit Credit 676: Mileage Expense Debit Balance 0 Credit Balance 624 Date December 01 684: Repairs Expense-Computer Debit Credit Balance 715 Required 1 Required 2A Required 2B Required 3 Required 4 Required 5 Required 6 Required 7 Requir Prepare an adjusted trial balance as of December 31, 2021. BUSINESS SOLUTIONS Cash Accounts receivable Adjusted Trial Balance December 31, 2021 Account Title Debit Credit 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 < Required 2B Required 4 > Required 1 Required 2A Required 2B Required 3 Required 4 Required 5 Required 6 Required 7 Require Prepare an income statement for the three months ended December 31, 2021. Revenue Expenses Total expenses BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2021 0 $ 0 < Required 3 Required 5 > Required 1 Required 2A Required 2B Required 3 Required 4 Required 5 Required 6 Required Prepare a statement of retained earnings for the three months ended December 31, 2021. BUSINESS SOLUTIONS Statement of Retained Earnings For Three Months Ended December 31, 2021 Retained earnings, October 1, 2021 0 Retained earnings, December 31, 2021 $ 0 Required 1 Required 2A Required 2B Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Prepare a classified balance sheet as of December 31, 2021. BUSINESS SOLUTIONS Balance Sheet December 31, 2021 Assets Current assets Plant assets 0 0 0 0 0 Liabilities Equity 0 Total equity Total Liabilities and Equity $ 0 $ 0 < Required 5 Required 7 > Required 1 Required 2A Required 2B Required 3 Required 4 Required 5 Required 6 Required 7 Required Record the necessary closing entries as of December 31, 2021. View transaction list Journal entry worksheet < 1 2 3 4 Record the entry to close the revenue account(s). Note: Enter debits before credits. Date December 31 General Journal Debit Credit Record entry Clear entry View general journal < Required 6 Required 8 > 1. 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 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. Required 1 Required 2A Required 2B Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Prepare a post-closing trial balance as of December 31, 2021. BUSINESS SOLUTIONS Post-Closing Trial Balance December 31, 2021 Totals Debit Credit $ 0 $ 0 < Required 7 Required 8 >