transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 Dec 02 975 Advertising expense Cash 975 2 Dec 03 500 Repairs expense-Computer Cash 500 3 Dec 04 Cash 4,750 Accounts receivable 4,750 4 Dec 10 600 Wages expense Cash 600 5 Dec 14 Cash 1,900 Unearned computer services revenue 1,900 6 Dec 15 2,000 Computer supplies Accounts payable 2,000 8 Dec 20 6,325 Cash Computer services revenue 6,325 9 Dec 28 3,700 Cash Accounts receivable 3,700 10 Dec 29 156 Mileage expense Cash 156 11 Dec 31 1,100 Dividends Cash 1,100 2-a. Prepare adjusting entries to reflect a through t. 2-b. Post the journal entries to record each of the December transactions from Requirement 1 and adjusting entries from Requirement 2A. After completing Requirement 7 post the closing entries to the general ledger accounts. 3. Prepare an adjusted trial balance as of December 31, 2020. 4. Prepare an income statement for the three months ended December 31, 2020. 5. Prepare a statement of retained earnings for the three months ended December 31, 2020. 6. Prepare a balance sheet as of December 31, 2020. 7. Record the necessary closing entries as of December 31, 2019 and then post the closing entries to the general ledger in Requirement 28. 8. Prepare a post-closing trial balance as of December 31, 2020. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req3 Req 4 Req 5 Req 6 Req 7 Req 8 Prepare adjusting entries to reflect a through f. View transaction list View journal entry worksheet Transaction Debit Credit No 1 a. General Journal Computer supplies expense Computer supplies 4,015 4,015 2 2 b. 525 Insurance expense Prepaid insurance 525 3 C. 400 Wages expense Wages payable 400 4 d. 1,475 Depreciation expense-Computer equipment Accumulated depreciation-Computer equipment 1,475 ) 420 Depreciation expense-Office equipment Accumulated depreciation Office equipment 420 f. 2,220 Rent expense Prepaid rent 2,220 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 $630 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 $100 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 and events for Business Solutions. 2-a. Prepare adjusting entries to reflect a through f. 2-b. Post the journal entries to record each of the December transactions from Requirement 1 and adjusting entries from Requirement 2A. After completing Requirement 7, post the closing entries to the general ledger accounts. 3. Prepare an adjusted trial balance as of December 31, 2020. 4. Prepare an income statement for the three months ended December 31, 2020. 5. Prepare a statement of retained earnings for the three months ended December 31, 2020. 6. Prepare a balance sheet as of December 31, 2020. 7. Record the necessary closing entries as of December 31, 2019 and then post the closing entries to the general ledger in Requirement 2B. 8. Prepare a post-closing trial balance as of December 31, 2020. Prepare an adjusted trial balance as of December 31, 2020. BUSINESS SOLUTIONS Adjusted Trial Balance December 31, 2020 Account Title Debit Credit Cash Accounts receivable Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciationOffice 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 Miscellaneous expenses Repairs expense-Computer Totals $ 0 $ 0 Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Req 2B Req3 Reg 4 Req 5 Reg 6 Req 7 Req 8 Prepare an income statement for the three months ended December 31, 2020. BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2020 Revenue Expenses Total expenses 0 Complete this question by entering your answers in the tabs below. Req Req 2A Req 2B Reg 3 Reg 4 Reg 5 Reg 6 Req 7 Reg 8 Prepare a statement of retained earnings for the three months ended December 31, 2020. BUSINESS SOLUTIONS Statement of Retained Earnings For Three Months Ended December 31, 2020 Retained earnings, October 1, 2020 Retained earnings, December 31, 2020 $ Reg 1 Req 2A Req 2B Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 Prepare a balance sheet as of December 31, 2020. BUSINESS SOLUTIONS Balance Sheet December 31, 2020 Assets 0 0 $ 0 Total Assets Liabilities 0 Total Liabilities Equity 0 Total equity Total Liabilities and Equity $ 0 Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Reg 2B Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Req 8 Record the necessary closing entries as of December 31, 2019 and then post the closing entries to the general ledger in Requirement 2B. View transaction list Journal entry worksheet Record the closure of revenue account(s). Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31 Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Req 2B Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Req 8 Prepare a post-closing trial balance as of December 31, 2020. BUSINESS SOLUTIONS Post-Closing Trial Balance December 31, 2020 Debit Credit Cash Accounts receivable Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciationOffice equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable Wages payable Unearned computer services revenue Common stock Retained earnings Totals 0 $ After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30, 2020, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2020) follows. Credit Debit $ 38,364 12,718 2,645 2,100 2,960 8,400 $ $ 23,600 a No. 101 106 126 128 131 163 164 167 168 201 210 236 307 318 319 403 612 613 623 637 640 652 655 676 677 684 66,000 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 Miscellaneous expenses Repairs expense-Computer Totals 5,900 36,219 a 2,175 0 1,638 684 240 795 $102,219 $102, 219 Business Solutions had the following transactions and events in December 2020. Dec. 2 Paid $975 cash to Hillside Mall for Business Solutions's share of mall advertising costs. 3 Paid $500 cash for minor repairs to the company's computer. 4 Received $4,750 cash from Alex's Engineering Co. for the receivable from November. 10 Paid cash to Lyn Addie for six days of work at the rate of $100 per day. 14 Notified by Alex's Engineering Co. that Business Solutions's bid of $7,500 on a proposed project has been accepted. Alex's paid a $1,900 cash advance to Business Solutions. 15 Purchased $2,000 of computer supplies on credit from Harris Office Products. 16 Sent a reminder to Gomez Co. to pay the fee for services recorded on November 8. 20 Completed a project for Liu Corporation and received $6,325 cash. 22- Took the week off for the holidays. 26 28 Received $3,700 cash from Gomez Co. on its receivable. 29 Reimbursed 5. Rey for business automobile mileage (600 miles at $0.26 per mile). 31 The company paid $1,100 cash in dividends