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 Number 101 106 126 128 Debit $ 38,964 13.418 2,545 1,860 3,180 8,600 131 $ 23,200 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 Mileage expense 163 164 167 168 201 210 236 307 318 319 403 612 613 623 637 640 652 655 676 68,000 5,900 35,364 2,400 o @ 1788 674 Prey 1 of 1 WEE Next 5,00 319 403 612 613 623 35,364 637 2,400 e 640 652 655 676 677 684 901 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 Income summary Totals 1,708 674 180 735 $ 103,364 $ 103,364 Business Solutions had the following transactions and events in December 2021 December 2 Paid $970 cash to Hillside Mall for Business Solutions is share of mall advertising costs. December 3 Paid $430 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 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 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 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 Gomez Company on its receivable. December 29 Reimbursed s. Rey for business automobile mileage (600 miles at $0.23 per mile) December 31 Paid $1,300 cash for dividends. Prey 1 of 1 HIE Next Che 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 $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 1. 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 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. Recora 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. Proy 1 of 3 Next 101: Cash Debit Credit 106: Accounts Receivable Debit Credit Date December 01 December 04 December 28 970 430 Balance 13 418 8.968 5,568 DO SIS 4.450 3,400 4.450 Date December 01 December 02 December 03 December 04 December 10 December 14 December 20 December 28 December 29 December 31 720 Balance 38,964 37,994 37564 42,014 41,294 43.694 50.169 53,569 53.431 52 131 IS 2,400 6,475 3,400 138 1,300 126: Computer Supplies Debit Credit 128: Prepaid Insurance Debit Credit Date December 01 December 15 Balance 2.545 4.145 Date December 01 December 31 Balance 1860 1.395 1,600 465 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 1,860 1,395 1.600 465 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 Prey 1 of 1 !!! Next 201: Accounts Payable Debit Credit 168: Accumulated Depreciation Computer Equipment Dato Debit Credit Balance December 01 0 December 31 1.450 1.450 Data December 01 December 15 Balance 0 1,600 1,600 210: Wages Payable Debit Credit Date December 01 December 31 Balance 0 236: Uneamed Computer Services Revenue Date Debit Credit Balance December 01 0 December 14 2.400 2,400 480 >> 480 307: Common Stock Debit Credit 318: Retained Earnings Debit Credit Date December 01 Balance 68,000 Balance 0 Data December 01 December 31 December 31 X WE Prey 1 of 1 Next Return 313: Dividends Debit Credit 403: Computer Services Revente Debit Credit Date December 01 December 31 December 31 1.300 Balance 5,900 7,200 0 Date December 01 December 20 December 31 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 December 31 4303 0 613: Depreciation Expense-Computer Equipment Date Debit Credit Balance December 01 0 December 31 1.450 1.450 December 31 1.450 0 > O * 623: Wages Expense Debit Credit Date 637: Insurance Expense Debit Credit Balance Date Balance Prey 1 of 1 Next Ret 623: Wages Expense Debit Credit 637: Insurance Expense Debit Credit Balance 0 Date December 01 December 10 December 31 December 31 >> 720 480 Balance 2.400 3.120 3,600 0 Date December 01 December 31 December 31 465 IX 465 0 465 X 3,6003 640: Rent Expense Debit Credit 652: Computer Supplies Expense Debit Credit Balance 0 Balance 0 Date December 01 December 31 December 31 Date December 01 December 31 December 31 2,385 > 2,385 0 3.535 3 2.385 3,535 0 3,535 % 655: Advertising Expense Debit Credit 676: Mileage Expense Debit Credit Date Balance Date Balance Prey 1 of 1 !!! Next Return 655 Advertising Expense Debit Credit 676: Mileage Expense Debit Credit Date December 01 December 02 December 31 Balance 1,708 2,678 0 Date December 01 December 29 December 31 Balance 674 812 970 138 & 2,678 % 812 0 677: Miscellaneous Expense Dobit Credit 684 Repairs Expense Computer Debit Credit Date December 01 December 31 Balance 180 Date December 01 December 03 December 31 Balance 735 1.165 0 180 0 430 1.165