SP 3 Serial Problem Business Solutions (Algo) LO P1, P2, P3, P4, P5 1 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 Boo 101 106 126 120 Debit $ 30,064 11,210 2,645 2.260 renta 163 164 3.500 16 10,000 201 110 0 Account title Cash Accounts receivable Computer supplies Prepaid insurance Prepaid rent orice culent Accumulated depreciation office equipment Computer equip Accumulated depreciation Computer ruipent Accounts payable payable Une and computer vise Contacte Bened was Dividende Computer Services rehue Depreciation pense-office equipment Depreciation expense-Computer runt Magesexperte Insurance Rent expense Computer supplies Advertising expense pen Miscellaneous 68,000 6, 31 310 403 612 11 623 37,129 2,575 40 52 655 D 0 1, 654 160 Business Solutions had the following transactions and events in December 2021 look December 2 Pald $950 cash to Hillside Hall for Business Solutions's share of wall advertising costs. December 3 Paid $410 cash for sinor repairs to the company's computer December 4 Received $4,850 cash fron 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 $105 per day December 14 Notified by Alex's Engineering Company that Business Solutions's bid of $7,100 on a proposed project has been accepted. Alex's paid a $1,900 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 Lu Corporation and received 56,475 cash December 22-26 took the week off for the holidays. December 20 Received 53.100 cash from Gomez Company on its receivable December 29 Reimbursed 5. Rey for business automobile sileage (500 miles at 50.24 per aile) December 31 paid $1.000 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 Print rence a. The December 31 inventory count of computer supplies shows $620 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 S105 per day d. 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 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 2-0. 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 SP 3 Serial Problem Business Solutions (Algo) LO P1, P2, P3, P4, P5 1 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 Boo 101 106 126 120 Debit $ 30,064 11,210 2,645 2.260 renta 163 164 3.500 16 10,000 201 110 0 Account title Cash Accounts receivable Computer supplies Prepaid insurance Prepaid rent orice culent Accumulated depreciation office equipment Computer equip Accumulated depreciation Computer ruipent Accounts payable payable Une and computer vise Contacte Bened was Dividende Computer Services rehue Depreciation pense-office equipment Depreciation expense-Computer runt Magesexperte Insurance Rent expense Computer supplies Advertising expense pen Miscellaneous 68,000 6, 31 310 403 612 11 623 37,129 2,575 40 52 655 D 0 1, 654 160 Business Solutions had the following transactions and events in December 2021 look December 2 Pald $950 cash to Hillside Hall for Business Solutions's share of wall advertising costs. December 3 Paid $410 cash for sinor repairs to the company's computer December 4 Received $4,850 cash fron 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 $105 per day December 14 Notified by Alex's Engineering Company that Business Solutions's bid of $7,100 on a proposed project has been accepted. Alex's paid a $1,900 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 Lu Corporation and received 56,475 cash December 22-26 took the week off for the holidays. December 20 Received 53.100 cash from Gomez Company on its receivable December 29 Reimbursed 5. Rey for business automobile sileage (500 miles at 50.24 per aile) December 31 paid $1.000 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 Print rence a. The December 31 inventory count of computer supplies shows $620 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 S105 per day d. 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 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 2-0. 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
