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What am I missing and/or done wrong? After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November
What am I missing and/or done wrong?
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. Business Solutions had the following transactions and events in December 2021. December 2 Paid \$1,015 cash to Hillside Mall for Business Solutions's share of mall advertising costs. Decerber 3 Paid $480 cash for minor repairs to the company's computer. Decenber 4 Received 54,750 cash from Alex's Engineering Company for the receivable from Novenber. December 10 Pald cash to Lyn Addie for six days of work at the rate of $125 per day. Deceaber 14 Notifled by Alex's Engineering Conpany that Business Solutions's bid of $7, 800 on a proposed project has been accepted. Alex's paid a $1, $00 cash advance to Business Solutions. Deceaber 15 Purchased $1,500 of computer supplies on credit from Harris office Products. Decenber 16 Sent a reninder to Gonez Company to pay the fee for services recorded on llovember 8. December 20 Completed a project for Liu Corporation and received \$6,025 cash. Deceaber 22-26 Took the week off for the holldays. December 28 Received $3,600 cash from Gomez Company on its receivable. December 29 Reimbursed S. Rey for business automobile mileage ( $00 miles at 50.30 per mile). Deceaber 31 Paid $1,160 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. a. The December 31 inventory count of computer supplies shows $660 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. Post those entries to the accounts in the ledger, 2-a. Prepare adjusting entries to reflect a through f. 2-b. Post the joumal 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-clasing trial balance as of December 31, 2021. Complete this question by entering your answers in the tabs below. Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)Step by Step Solution
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