1. Prepare journal entries to record each of the December transactions and events for Business Solutions....

  

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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, 2021. Number Account Title Debit Credit 101 Cash $ 38,864 106 Accounts receivable 12,718 126 Computer supplies 2,545 128 Prepaid insurance 2,100 131 Prepaid rent 3,280 163 office equipment 8,000 164 167 Computer equipment 168 Accumulated depreciation-office equipment Accumulated depreciation-Computer equipment 20,400 201 Accounts payable 0 210 Wages payable 0 236 Unearned computer services revenue 0 301 S. Rey, Capital 64,000 302 S. Rey, Withdrawals 5,800 403 Computer services revenue 35,459 612 613 623 Wages expense 637 640 Rent expense 652 Depreciation expense-Office equipment Depreciation expense-Computer equipment Insurance expense Computer supplies expense 0 0 2,525 0 0 655 Advertising expense 1,648 676 Mileage expense 614 677 Miscellaneous expenses 190 684 Repairs expense-Computer Totals 775 $ 99,459 $ 99,459 Business Solutions had the following transactions and events in December 2021. December 2 Paid $975 cash to Hillside Mall for Business Solutions's share of mall advertising costs. December 3 Paid $470 cash for minor repairs to the company's computer. December 4 Received $4,750 cash from Alex's Engineering Company for the receivable from November. December 10 Paid cash to Lyn Addie for six days of work at the rate of $105 per day. December 14 Notified by Alex's Engineering Company that Business Solutions's bid of $7,900 on a proposed project has been accepted. Alex's paid a $1,700 cash advance to Business Solutions. December 15 Purchased $1,300 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 $5,025 cash. December 22-26 Took the week off for the holidays. December 28 Received $3,100 cash from Gomez Company on its receivable.. December 29 Reimbursed B. Rey for business automobile mileage (500 miles at $0.24 per mile). December 31 S. Rev withdrew $1.200 cash from the company for personal use. 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 $105 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. 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, 2021. Number Account Title Debit Credit 101 Cash $ 38,864 106 Accounts receivable 12,718 126 Computer supplies 2,545 128 Prepaid insurance 2,100 131 Prepaid rent 3,280 163 office equipment 8,000 164 167 Computer equipment 168 Accumulated depreciation-office equipment Accumulated depreciation-Computer equipment 20,400 201 Accounts payable 0 210 Wages payable 0 236 Unearned computer services revenue 0 301 S. Rey, Capital 64,000 302 S. Rey, Withdrawals 5,800 403 Computer services revenue 35,459 612 613 623 Wages expense 637 640 Rent expense 652 Depreciation expense-Office equipment Depreciation expense-Computer equipment Insurance expense Computer supplies expense 0 0 2,525 0 0 655 Advertising expense 1,648 676 Mileage expense 614 677 Miscellaneous expenses 190 684 Repairs expense-Computer Totals 775 $ 99,459 $ 99,459 Business Solutions had the following transactions and events in December 2021. December 2 Paid $975 cash to Hillside Mall for Business Solutions's share of mall advertising costs. December 3 Paid $470 cash for minor repairs to the company's computer. December 4 Received $4,750 cash from Alex's Engineering Company for the receivable from November. December 10 Paid cash to Lyn Addie for six days of work at the rate of $105 per day. December 14 Notified by Alex's Engineering Company that Business Solutions's bid of $7,900 on a proposed project has been accepted. Alex's paid a $1,700 cash advance to Business Solutions. December 15 Purchased $1,300 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 $5,025 cash. December 22-26 Took the week off for the holidays. December 28 Received $3,100 cash from Gomez Company on its receivable.. December 29 Reimbursed B. Rey for business automobile mileage (500 miles at $0.24 per mile). December 31 S. Rev withdrew $1.200 cash from the company for personal use. 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 $105 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.

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