SP 3 Serial Problem Business Solutions (Static) 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	$ 38,264
106	Accounts receivable	12,618
126	Computer supplies	2,545
128	Prepaid insurance	2,220
131	Prepaid rent	3,300
163	Office equipment	8,000
164	Accumulated depreciationOffice equipment		$ 0
167	Computer equipment	20,000
168	Accumulated depreciationComputer equipment		0
201	Accounts payable		0
210	Wages payable		0
236	Unearned computer services revenue		0
307	Common stock		73,000
318	Retained earnings		0
319	Dividends	5,600
403	Computer services revenue		25,659
612	Depreciation expenseOffice equipment	0
613	Depreciation expenseComputer equipment	0
623	Wages expense	2,625
637	Insurance expense	0
640	Rent expense	0
652	Computer supplies expense	0
655	Advertising expense	1,728
676	Mileage expense	704
677	Miscellaneous expenses	250
684	Repairs expenseComputer	805
901	Income summary		0
	Totals	$ 98,659	$ 98,659

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

December 2	Paid $1,025 cash to Hillside Mall for Business Solutions's share of mall advertising costs.
December 3	Paid $500 cash for minor repairs to the companys computer.
December 4	Received $3,950 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 $125 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 $1,500 cash advance to Business Solutions.
December 15	Purchased $1,100 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 $5,625 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 (600 miles at $0.32 per mile).
December 31	Paid $1,500 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 $580 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 $125 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.

Prepare a post-closing trial balance as of December 31, 2021.

101: Cash

106: Accounts receivable

126: Computer supplies

128: Prepaid insurance

131: Prepaid rent

163: Office equipment

164: Accumulated depreciationOffice equipment

167: Computer equipment

168: Accumulated depreciationComputer equipment

201: Accounts payable

210: Wages payable

236: Unearned computer services revenue

307: Common stock

318: Retained earnings

319: Dividends

403: Computer services revenue

404: Interest revenue

612: Depreciation expenseOffice equipment

613: Depreciation expenseComputer equipment

623: Wages expense

637: Insurance expense

640: Rent expense

652: Computer supplies expense

655: Advertising expense

676: Mileage expense

677: Miscellaneous expenses

684: Repairs expenseComputer

901: Income summary

Prepare a post-closing trial balance as of December 31,2021