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 Account Title 101 Cash 106 Accounts receivable 126 Computer supplies 128 Prepaid insurance 131 Prepaid rent 163 Office equipment 164 167 Computer equipment 168 201 Accounts payable 210 Wages payable 236 Accumulated depreciation-office equipment Accumulated depreciation-Computer equipment Unearned computer services revenue 307 Common stock 318 Retained earnings. 319 Dividends 403 612 613 623 Wages expense 637 640 Rent expense 652 Computer services revenue Depreciation expense-Office equipment Depreciation expense-Computer equipment Insurance expense Computer supplies expense 655 Advertising expense 676 Mileage expense 677 Miscellaneous expenses 684 Repairs expense-Computer 901 Income summary Debit $ 38,764 Credit 13,518 2,545 2,160 2,960 8,500 22,000 0 0 0 66,000 0 6,300 36,394 0 0 2,450 0 1,628 644 160 765 $ 102,394 $ 102,394 Totals Business Solutions had the following transactions and events in December 2021. December 2 Paid $1,000 cash to Hillside Hall 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 $4,050 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 $120 per day. December 14 Notified by Alex's Engineering Company that Business Solutions's bid of $7,400 on a proposed project has been accepted. Alex's paid a $1,800 cash advance to Business Solutions. December 15 Purchased $1,200 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 $6,275 cash. December 22-26 Took the week off for the holidays. December 28 Received $3,000 cash from Gomez Company on its receivable. December 29 Reimbursed S. Rey for business automobile mileage (500 miles at $0.27 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 $680 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 $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: 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 28 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 Journal entry worksheet 3 4 5 67 8..... 11 Paid $1,000 cash to Hillside Mall for Business Solutions's share of mall advertising costs. Note: Enter debits before credits. Date December 02 General Journali Debit Credit b. Prepare a classmed Daiance sneet 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 28 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- required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 11 Paid $460 cash for minor repairs to the company's computer. Note: Enter debits before credits. Date December 03 General Journal Debit Credit Record entry Clear entry View general journal required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 2 3. 4 5 6 7 8..... 11 Received $4,050 cash from Alex's Engineering Company for the receivable from November. Note: Enter debits before credits. Date: December 04 General Journal Debit Credit Record entry Clear entry View general Journal Required Required 2A > Journal entry worksheet < 1 2 3 4 5 6 7 8 11 Paid cash to Lyn Addie for six days of work at the rate of $120 per day. Note: Enter debits before credits. Date December 10 General Journal Debit Credit Record entry Clear entry View general journal Required Required 2A > Journal entry worksheet > 1 2 3 4 5. 6 7 8 11 Notified by Alex's Engineering Company that Business Solutions's bid of $7,400 on a proposed project has been accepted. Alex's paid a $1,800 cash advance to Business Solutions. Note: Enter debits before credits. Date December 14 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 7 11 Purchased $1,200 of computer supplies on credit from Harris Office Products. Note: Enter debits before credits. Date December 15 General Journal Debit Credit Record entry Clear entry View general journal Required Required 2A > eBook 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 Journal entry worksheet < 1 2 3 4 5 6 7 11 Sent a reminder to Gomez Company to pay the fee for services recorded on November 8. Note: Enter debits before credits.) Date December 16 General Journal Debit Credit Record entry Clear entry View general journal Required Required 2A > View transaction list Journal entry worksheet y required in the mist account herd.) 1 2 3 4 56 7 8 11 Completed a project for Liu Corporation and received $6,275 cash. Note: Enter debits before credits. Date December 20 General Journal Debit Credit Record entry Clear entry View general journal Required Required 2A > Journal entry worksheet < 1 ... 4 5 6 7 8 9 11 Received $3,000 cash from Gomez Company on its receivable. Note: Enter debits before credits. Date December 28 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 4 56 7 8. 9 10 11 Reimbursed S. Rey for business automobile mileage (500 miles at $0.27 per mile). Note: Enter debits before credits. Date December 29 General Journal Debit Credit Record entry Clear entry View general Journal Required Required 2A > Journal entry worksheet 1 ... 4 5 6 7 8 9 Paid $1,400 cash for dividends. Note: Enter debits before credits. Date December 31 10 10 11 11 General Journal Debit Credit Record entry Clear entry View general Journal