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. Credit Debit $ 38,964 13,418 2,545 1,860 3,180 8,600 $ 23,200 @ O Number 101 106 126 128 131 163 164 167 168 201 210 236 307 318 319 403 612 613 623 637 640 652 655 Account Title Cash Accounts receivable 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 68,000 5,900 35,364 8 2,400 10 1,708 Prey 1 of 1 Next M 2,400 613 623 637 640 652 655 676 677 684 981 Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer Income summary Totals 0 1,708 674 180 735 A $ 183,364 $ 103,364 Business Solutions had the following transactions and events in December 2021. December 2 Paid $979 cash to Hillside Mall for Business Solutions's share of mall advertising costs. December 3 Paid $436 cash for minor repairs to the company's computer December 4 Received $4,450 cash from Alex's Engineering Company for the receivable from November December 1e 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 $2,400 cash advance to Business Solutions. December 15 Purchased $1,600 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 $6,475 cash. December 22-26 Took the week off for the holidays. December 28 Received $3,400 cash from Gomes Company on its receivable. December 29 Reimbursed S. Rey for business automobile mileage (600 miles at se.23 per mile). December 31 Paid $1,300 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 Prey 1 of 1 Next a. The December 31 inventory count of computer supplies shows $610 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-o. Prepare adjusting entries to reflect a through 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 Prenare inurnal entries to record each of the Deremher transactions. Dost those entries to the areounts in the ledoar Fon antv Prey 1 of 1 Next No Date General Journal Dobit Credit 1 December 02 Advertising expense Cash 970 970 2 December 03 Ropairs expense-Computer 430 Cash 430 3 December 04 Cash 4.450 Accounts recolvable 4.450 4 December 10 720 Wages expense Cash 720 5 December 14 Cash 2.400 Unearned computer services revenue 2,400 6 December 15 1,600 Computer supplies Accounts payable 1,600 Prev 1 of 1 Next 6 December 15 Computer supplies Accounts payable 1,600 1,600 December 16 No journal entry required 8 December 20 Cash 6,475 Computer services revenue 6,475 9 December 28 Cash 3,400 Accounts receivable 3,400 10 December 29 Mileage expense Cash 138 138 11 December 31 Dividends 1.300 Cash 1,300 Required 2A > Prex 1 of 1 SHE Next View transaction list View journal entry worksheet No Transaction Debit Credit 1 a General Journal Computer supplies expense Computer supplies 3,535 3,535 2 b. Insurance expense 465 Prepaid insurance 465 3 Wages expense Wages payable 480 48 4 d Depreciation expense--Computer equipment Accumulated depreciation-Computer equipment 1.450 1,450 5 e 430 Depreciation expense-Office equipment Accumulated depreciation-Office equipment 430 6 f Rent expense 2.385 Prepaid rent 2.385 Prey 1 of 1 Next Re Required 1 Required 2A Required 2B Required 3 Required 4 Required S 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 Date Debit 106: Accounts Receivable Debit Credit Credit Balance OOI Date December 01 December 04 December 28 970 430 E Balance 13.418 8,968 5,568 4.450 3.400 O 4.450 720 December 01 December 02 December 03 December 04 December 10 December 14 December 20 December 28 December 29 December 31 38.964 37 994 37.564 42014 41.294 43 694 50.169 53,569 53.431 52 131 000 2,400 6,475 3,400 SIS 138 1 300 Prey 1 of 1 Next 126: Computer Supplies Debit Credit 128: Prepaid Insurance Debit Credit Date December 01 December 15 December 31 Balance 2,545 4.145 610 Date December 01 December 31 Balance 1860 1,395 1,600 DO 465 3,535 131: Prepaid Rent Debit Credit 163: Office Equipment Debit Credit Date December 01 December 31 Balance 3,180 795 Date December 01 Balance 8,600 2,385 167: Computer Equipment Debit Credit Date 164: Accumulated Depreciation-Office Equipment Date Debit Credit Balance December 01 0 December 31 430 430 Balance 23 200 December 01 N. Prey 1 of 1 Next 168: Accumulated Depreciation Computer Equipment Date Debit Credit Balance December 01 0 December 31 1,450 1,450 201: Accounts Payable Debit Credit Date Balance December 01 December 15 0 1,600 1,600 210: Wages Payable Debit Credit Balance Date December 01 December 31 236: Unearned Computer Services Revenue Date Debit Credit Balance December 01 0 December 14 2,400 2.400 0 480 480 307: Common Stock Debit Credit Date December 01 318: Retained Earnings Debit Credit Balance 68,000 Date December 01 December 31 Balance 0 3 Prav 1 of 1 Next 319: Dividends Debit Credit Date December 01 December 31 403: Computer Services Revenue Debit Credit Balance 5.900 7,200 0 Date December 01 December 20 1,300 Balance 35,364 41,839 70,724 6,475 7.200 41.835 612: Depreciation Expense - Office Equipment Date Debit Credit Balance December 01 0 December 31 430 430 430 0 613: Depreciation Expense Computer Equipment Date Debit Credit Balance December 01 0 December 31 1.450 1,450 1.450 0 > Date December 01 623: Wages Expense Debit Credit 637: Insurance Expense Debit Credit Balance 2.400 Date December 01 Balance 0 Prey 1 of 1 Next Woestion indicate com 623: Wages Expense Debit Credit 637: Insurance Expense Debit Credit Date December 01 December 10 December 31 Balance 2,400 3.120 3,600 0 Date December 01 December 31 Balance 0 465 720 > 465 480 465 0 3,600 640: Rent Expense Debit Credit 652: Computer Supplies Expense Debit Credit Dato December 01 December 31 Balance 0 2,385 0 Date December 01 December 31 2,385 Balance 0 3,535 0 3.535 2,385 3.535 655: Advertising Expense Debit Credit 676: Mileage Expense Debit Credit Date Balance Date Balance Prey 1 of 1 Next 655: Advertising Expense Debit Credit Date December 01 December 02 676: Mileage Expense Debit Credit Balance 1,708 2,678 0 Date December 01 December 29 Balance 674 970 138 2,678 812 0 812 677: Miscellaneous Expense Debit Credit Date December 01 684: Repairs Experise--Computer Debit Credit Balance 180 0 Date December 01 December 03 180 Balanco 735 1.165 0 430 1.165 Prey SIE Next BUSINESS SOLUTIONS Adjusted Trial Balance December 31, 2021 Account Title Debit Credit Cash 52.131 Accounts receivable 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 Prey 1 of 1 Next 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 $ 52.131 $ 0 Required 2B Required 4 > Prey 1 of 1 Next BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2021 Revenue Expenses Total expenses 0 $ 0 Prey 1 of 1 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 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 Retained earnings, December 31, 2021 $ 0 Prey 1 of 1 Next 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 0 Plant assets ho 0 0 n Prey 1 of 1 Next 0 Plant assets 0 0 0 Liabilities Equity 0 Total equity Total Liabilities and Equity $ $ 0 Required 5 Required 7 > Prey 1 of 1 Next Journal entry worksheet 1 N 3 4 > Record the entry to close the revenue account(s). Note: Enter debits before credits. General Journal Debit Credit Date December 31 Record entry Clear entry View general journal Prey 1 of 1 Next Record the entry to close the expense account(s). Note: Enter debits before credits. General Journal Date December 31 Debit Credit Prey 1 of 1 Next Journal entry worksheet