unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2019) follows. Credit No. 101 106 126 128 131 Debit $ 38,464 13,518 2,545 2,160 2,960 8,700 164 Accu 20,400 64,000 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 167 168 201 210 236 307 318 319 403 612 613 623 637 640 652 655 676 677 6,200 36,639 2,425 1,648 644 190 785 $100,639 $100,639 Business Solutions had the following transactions and events in December 2019. Dec. 2 Paid $1,025 cash to Hillside Mall for Business Solutions' share of mall advertising costs. 3 Paid $500 cash for minor repairs to the company's computer. 4 Received $4,050 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 $125 per day. 14 Notified by Alex's Engineering Co. that Business Solutions' bid of $7,500 on a proposed project has been accepted. Alex's paid a $2,100 cash advance to Business Solutions. 15 Purchased $1,200 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 $6,175 cash. 22- Took the week off for the holidays. 26 28 Received $3,700 cash from Gomez Co. on its receivable. 29 Reimbursed s. Rey for business automobile mileage (600 miles at $0.24 per mile). 31 The company paid $1,000 cash in 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. a. The December 31 inventory count of computer supplies shows $640 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 $125 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, adjusting entries to the accounts in the ledger. 3. Prepare an adjusted trial balance as of December 31, 2019. 4. Prepare an income statement for the three months ended December 31, 2019 5. Prepare a statement of retained earnings for the three months ended December 31, 2019. 6. Prepare a balance sheet as of December 31, 2019. 7. Record and post the necessary closing entries as of December 31, 2019 8. Prepare a post-closing trial balance as of December 31, 2019. Req 1 Req 2A Reg 2B Req3 Reg 4 Req 5 Reg 6 Req 7 Req 8 Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger. 101: Cash Debit 106: Accounts Receivable Debit Credit Credit Date Dec. 01 Balance 38,464 Date Dec. 01 Balance 13,518 126: Computer Supplies Debit Credit 128: Prepaid Insurance Debit Credit Date Dec. 01 Balance 2,545 Date Dec. 01 Balance 2,160 131: Prepaid Rent Debit Credit 163: Office Equipment Debit Credit Date Dec. 01 Balance 2,960 Date Dec. 01 Balance 8,700 164: Accumulated Depreciation Office Equipment Date Debit Credit Balance Dec. 01 167: Computer Equipment Debit Credit Date Dec. 01 Balance 20,400 0 168: Accumulated Depreciation Computer Equipment Date Debit Credit Balance Dec. 01 201: Accounts Payable Debit Credit Balance Date Dec. 01 0 210: Wages Payable Debit Credit Balance Date Dec. 01 236: Unearned Computer Services Revenue Date Debit Credit Balance Dec. 01 307: Common Stock Debit Credit 318: Retained Earnings Debit Credit Balance Date Dec. 01 Balance 64,000 Date Dec 01 319: Dividends Debit Credit Credit Date Dec. 01 Balance Balance 6,200 Date Date Dec. 01 comer services Revenue Debit Credit Balance 36,639 677: Miscellaneous Expense Debit Credit 684: Repairs Expense-Computer Debit Credit Date Dec. 01 Balance 190 Date Dec. 01 Balance 785 901: Income Summary Debit Credit Date Balance