SP 3 Serial Problem Business Solutions (Algo) LO P1, P2, P3, P4, P5 After the success of the companys 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 Debit Credit 101 Cash $ 38,964 106 Accounts receivable 13,118 126 Computer supplies 2,645 128 Prepaid insurance 2,100 131 Prepaid rent 3,260 163 Office equipment 8,300 164 Accumulated depreciationOffice equipment $ 0 167 Computer equipment 20,400 168 Accumulated depreciationComputer equipment 0 201 Accounts payable 0 210 Wages payable 0 236 Unearned computer services revenue 0 307 Common stock 70,000 318 Retained earnings 0 319 Dividends 6,300 403 Computer services revenue 30,784 612 Depreciation expenseOffice equipment 0 613 Depreciation expenseComputer equipment 0 623 Wages expense 2,400 637 Insurance expense 0 640 Rent expense 0 652 Computer supplies expense 0 655 Advertising expense 1,698 676 Mileage expense 654 677 Miscellaneous expenses 210 684 Repairs expenseComputer 735 901 Income summary 0 Totals $ 100,784 $ 100,784 Business Solutions had the following transactions and events in December 2021 December 2 Paid $1,005 cash to Hillside Mall for Business Solutions's share of mall advertising costs December 3 Paid $490 cash for minor repairs to the companys computer December 4 Received $4,450 cash from Alexs 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 Alexs Engineering Company that Business Solutions's bid of $7,000 on a proposed project has been accepted Alexs paid a $1,600 cash advance to Business Solutions December 15 Purchased $1,700 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 $5,925 cash December 22 26 Took the week off for the holidays December 28 Received $3,800 cash from Gomez Company on its receivable December 29 Reimbursed S Rey for business automobile mileage (600 miles at $0 27 per mile) December 31 Paid $1,200 cash for dividends The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the companys first three months The December 31 inventory count of computer supplies shows $660 still available Three months have expired since the 12 month insurance premium was paid in advance As of December 31, Lyn Addie has not been paid for four days of work at $100 per day The computer system, acquired on October 1, is expected to have a four year life with no salvage value The office equipment, acquired on October 1, is expected to have a five year life with no salvage value 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 Paid $1,005 cash to Hillside Mall for Business Solutions's share of mall advertising costs Paid $490 cash for minor repairs to the companys computer Received $4,450 cash from Alexs Engineering Company for the receivable from November Paid cash to Lyn Addie for six days of work at the rate of $100 per day Notified by Alex's Engineering Company that Business Solutions's bid of $7,000 on a proposed project has been accepted Alexs paid a $1,600 cash advance to Business Solutions Purchased $1,700 of computer supplies on credit from Harris Office Products Sent a reminder to Gomez Company to pay the fee for services recorded on November 8 Completed a project for Liu Corporation and received $5,925 cash Received $3,800 cash from Gomez Company on its receivable Reimbursed S Rey for business automobile mileage (600 miles at $0 27 per mile) Paid $1,200 cash for dividends

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SP 3 Serial Problem Business Solutions (Algo) LO P1, P2, P3, P4, P5 After the success of the companys first two months, Santana Rey continues

SP 3 Serial Problem Business Solutions (Algo) LO P1, P2, P3, P4, P5

After the success of the companys 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	Debit	Credit
101	Cash	$ 38,964
106	Accounts receivable	13,118
126	Computer supplies	2,645
128	Prepaid insurance	2,100
131	Prepaid rent	3,260
163	Office equipment	8,300
164	Accumulated depreciationOffice equipment		$ 0
167	Computer equipment	20,400
168	Accumulated depreciationComputer equipment		0
201	Accounts payable		0
210	Wages payable		0
236	Unearned computer services revenue		0
307	Common stock		70,000
318	Retained earnings		0
319	Dividends	6,300
403	Computer services revenue		30,784
612	Depreciation expenseOffice equipment	0
613	Depreciation expenseComputer equipment	0
623	Wages expense	2,400
637	Insurance expense	0
640	Rent expense	0
652	Computer supplies expense	0
655	Advertising expense	1,698
676	Mileage expense	654
677	Miscellaneous expenses	210
684	Repairs expenseComputer	735
901	Income summary		0
	Totals	$ 100,784	$ 100,784

Business Solutions had the following transactions and events in December 2021.

December 2	Paid $1,005 cash to Hillside Mall for Business Solutions's share of mall advertising costs.
December 3	Paid $490 cash for minor repairs to the companys computer.
December 4	Received $4,450 cash from Alexs 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 Alexs Engineering Company that Business Solutions's bid of $7,000 on a proposed project has been accepted. Alexs paid a $1,600 cash advance to Business Solutions.
December 15	Purchased $1,700 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 $5,925 cash.
December 22-26	Took the week off for the holidays.
December 28	Received $3,800 cash from Gomez Company on its receivable.
December 29	Reimbursed S. Rey for business automobile mileage (600 miles at $0.27 per mile).
December 31	Paid $1,200 cash for dividends.

The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the companys first three months.

The December 31 inventory count of computer supplies shows $660 still available.
Three months have expired since the 12-month insurance premium was paid in advance.
As of December 31, Lyn Addie has not been paid for four days of work at $100 per day.
The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.
The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.
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.

Paid $1,005 cash to Hillside Mall for Business Solutions's share of mall advertising costs.
Paid $490 cash for minor repairs to the companys computer.
Received $4,450 cash from Alexs Engineering Company for the receivable from November.
Paid cash to Lyn Addie for six days of work at the rate of $100 per day.
Notified by Alex's Engineering Company that Business Solutions's bid of $7,000 on a proposed project has been accepted. Alexs paid a $1,600 cash advance to Business Solutions.
Purchased $1,700 of computer supplies on credit from Harris Office Products.
Sent a reminder to Gomez Company to pay the fee for services recorded on November 8.
Completed a project for Liu Corporation and received $5,925 cash.
Received $3,800 cash from Gomez Company on its receivable.
Reimbursed S. Rey for business automobile mileage (600 miles at $0.27 per mile).
Paid $1,200 cash for dividends.