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 612 613 623 Wages expense 637 640 Rent expense 652 655 Depreciation expense-Office equipment Depreciation expense-Computer equipment Insurance expense Computer supplies expense Advertising expense 676 Mileage expense 677 Miscellaneous expenses 684 Repairs expense-Computer 901 Income summary Totals Debit Credit $ 38,264 13,618 2,545 1,860 3,080 8,000 $ 0 22,800 0 0 0 71,000 0 5,900 30,679 0 0 2,375 0 0 0 1,648 644 220 725 0 $ 101,679 $ 101,679 Business Solutions had the following transactions and events in December 2021. December 2 Paid $985 cash to Hillside Mall for Business Solutions's share of mall advertising costs. December 3 Paid $460 cash for minor repairs to the company's computer. December 4 Received $4,750 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 $100 per day. December 14 Notified by Alex's Engineering Company that Business Solutions's bid of $7,900 on a proposed project has been accepted. Alex's paid a $2,000 cash advance to Business Solutions. December 15 Purchased $1,800 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 $6,575 cash. December 22-26 Took the week off for the holidays. December 28 Received $3,300 cash from Gomez Company on its receivable. December 29 Reimbursed S. Rey for business automobile mileage (400 miles at $0.31 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 $640 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 $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 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 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.) View transaction list View journal entry worksheet No Date General Journal 1 December 02 Advertising expense Cash 2 December 03 Repairs expense-Computer Cash Debit Credit 985 985 460 460 3 December 04 Cash 4,750 Accounts receivable 4,750 4 December 10 Wages expense Cash 600 600 5 December 14 Cash 2,000 Unearned computer services revenue 2,000 6 December 15 Computer supplies Accounts payable 7 December 16 No journal entry required 1,800 1,800 8 December 20 Cash 6,575 Computer services revenue 6,575 Prev 1 of 7 Next 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 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 Wages payable Debit Credit 3,705 3,705 465 465 400 400 4 d. Depreciation expense-Computer equipment 1,425 Accumulated depreciation-Computer equipment 1,425 5 e. Depreciation expense-Office equipment Accumulated depreciation-Office equipment 400 400 6 f. Rent expense Prepaid rent 2,310 2,310 < Required 1 Required 2B > Required 1 Required 2A Required 2B 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 38,264 December 01 13,618 December 02 985 37,279 December 04 4,750 8,868 December 03 460 36,819 December 28 3,300 5,568 December 04 4,750 41,569 December 10 400 41,169 December 14 2,000 43,169 December 20 6,575 49,744 December 28 4,750 54,494 December 29 124 54,370 December 31 1,100 53,270 Date December 01 December 15 December 31 Date December 01 December 31 126: Computer Supplies Debit Credit Balance 1,800 3,705 2,545 4,345 640 Date December 01 December 31 131: Prepaid Rent Debit 128: Prepaid Insurance Debit Credit Balance 1,860 465 1,395 163: Office Equipment Credit Balance Date Debit Credit Balance 2,310 3,080 770 December 01 8,000 164: Accumulated Depreciation-Office Equipment Date December 01 December 31 Debit Credit 400 Balance 0 Date December 01 400 168: Accumulated Depreciation-Computer Equipment Date December 01 December 31 Date December 01 December 31 Date December 01 Debit Credit 210: Wages Payable Debit Credit 307: Common Stock Debit Balance Date 0 December 01 1,425 1,425 December 15 400 Balance 0 400 Date December 01 December 14 167: Computer Equipment Debit Credit Balance 22,800 201: Accounts Payable Debit Credit Balance 0 1,800 1,800 236: Unearned Computer Services Revenue Debit Credit 2,000 Balance 0 2,000 318: Retained Earnings Credit Balance Date Debit Credit Balance 71,000 December 01 0 319: Dividends Date Debit Credit Balance December 01 December 31 1,100 5,900 7,000 Date December 01 December 20 403: Computer Services Revenue Debit Credit Balance 30,679 6,575 37,254 612: Depreciation Expense-Office Equipment Date December 01 December 31 Date December 01 Debit 400 Credit 623: Wages Expense Debit December 10 600 December 31 400 Date December 01 December 31 Date December 01 December 02 613: Depreciation Expense-Computer Equipment Balance 0 Date December 01 400 December 31 Debit 1,425 Credit Balance 1,425 637: Insurance Expense Credit Balance Date Debit Credit Balance 2,375 2,975 3,375 December 01 December 31 0 465 465 640: Rent Expense Debit 2,310 Credit Balance Date 0 2,310 December 01 December 31 655: Advertising Expense Debit 985 652: Computer Supplies Expense Debit 3,705 Credit Balance 0 3,705 676: Mileage Expense Credit Balance 1,648 2,633 Date December 01 December 29 Debit Credit Balance 644 124 768 Date December 01 677: Miscellaneous Expense Debit Credit Balance 220 Date December 01 December 03 684: Repairs Expense-Computer Debit 460 Credit Balance 725 1,185 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 an adjusted trial balance as of December 31, 2021. BUSINESS SOLUTIONS Cash Accounts receivable Computer supplies Prepaid insurance Prepaid rent Adjusted Trial Balance December 31, 2021 Account Title Office equipment Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable Wages payable Unearned computer services revenue Debit Credit $ 53,270 5,568 640 1,395 770 8,000 $ 400 22,800 1,425 1,800 400 2,000 71,000 Common stock Retained earnings Dividends 7,000 Computer services revenue 37,254 Depreciation expense-Office equipment 400 Depreciation expense-Computer equipment 1,425 Wages expense 3,375 Insurance expense 3,705 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 Prepare an income statement for the three months ended December 31, 2021. BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2021 Revenue Expenses Total expenses < Required 3 0 $ 0 Required 5 > 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 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 $ Required 6 > Retained earnings, December 31, 2021 < Required 4 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 Total equity Total Liabilities and Equity Liabilities Equity 0 $ 6969 $ 0 Required 1 Required 2A Required 2B Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 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 > 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 Record the necessary closing entries as of December 31, 2021. View transaction list Journal entry worksheet < 1 2 3 Record the entry to close the expense account(s). Note: Enter debits before credits. Date December 31 General Journal Debit Credit Record entry Clear entry View general iournal > 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 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 Income summary account. Note: Enter debits before credits. Date December 31 General Journal Debit Credit Record entry Clear entry View general journal < Required 6 Required 8 > > 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 <12 1 2 3 Record the entry to close the dividends account. Note: Enter debits before credits. Date December 31 General Journal Debit Credit Record entry Clear entry View general journal < Required 6 Required 8 > 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 Debit Credit Totals $ 0 < Required 7 Required 8