The November 30, 2020, unadjusted trial balance of Business Solutions is found in the Trial balance tab Business Solutions had the following transactions and events in December 2020 December 2 Paid $1,025 cash to Hillside Mall for Business Solutions 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 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 The company paid $1,500 cash in 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 has expired Requirement General Journal Income Statement Balance Sheet Impact on Income General Journal tab Prepare journal entries for each of the December transactions Then, using the information given for adjustments, prepare the adjusting entry necessary to correctly report the revenue earned or the expense incurred After adjusting the accounts, review the general ledger and trial balance for accuracy Income Statement tab Use the drop downs to select the accounts properly included on the income statement The unadjusted or adjusted balances will appear for each account, based on your selection Balance Sheet tab Use the drop downs to select the accounts properly included on the balance sheet The unadjusted or adjusted balances will appear for each account, based on your selection Impact on Income tab For each adjustment, indicate the income statement and balance sheet account affected, and the impact on net income If an adjustment caused net income to decrease, enter the amount as a negative value Net income before adjustments can be found on the income statement tab (Hint Select unadjusted on the dropdown )

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The November 30, 2020, unadjusted trial balance of Business Solutions is found in the Trial balance tab. Business Solutions had the following transactions and events

The November 30, 2020, unadjusted trial balance of Business Solutions is found in the Trial balance tab. Business Solutions had the following transactions and events in December 2020.

December 2	Paid $1,025 cash to Hillside Mall for Business Solutions 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 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	The company paid $1,500 cash in 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 has expired.

Requirement

General Journal
Income Statement
Balance Sheet
Impact on Income

General Journal tab - Prepare journal entries for each of the December transactions. Then, using the information given for adjustments, prepare the adjusting entry necessary to correctly report the revenue earned or the expense incurred. After adjusting the accounts, review the general ledger and trial balance for accuracy.

Income Statement tab - Use the drop-downs to select the accounts properly included on the income statement. The unadjusted or adjusted balances will appear for each account, based on your selection.

Balance Sheet tab - Use the drop-downs to select the accounts properly included on the balance sheet. The unadjusted or adjusted balances will appear for each account, based on your selection.

Impact on Income tab - For each adjustment, indicate the income statement and balance sheet account affected, and the impact on net income. If an adjustment caused net income to decrease, enter the amount as a negative value. Net income before adjustments can be found on the income statement tab. (Hint: Select unadjusted on the dropdown.)