After the success of the company's first two months, Santana Rey continues to operate Business Solutions....

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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. Number 101 Account Title Cash 106 Accounts receivable 126 Computer supplies 128 Prepaid insurance 131 Prepaid rent 163 Office equipment 164 Accumulated depreciation-office equipment 167 Computer equipment 168 Accumulated depreciation-Computer equipment 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue 307 Common stock 318 Retained earnings 319 Dividends 403 Computer services revenue 612 613 Depreciation expense-Office equipment Depreciation expense-Computer equipment 623 Wages expense 637 Insurance expense 640 Rent expense 652 Computer supplies expense 655 Advertising expense 676 Mileage expense 677 Miscellaneous expenses 684 Repairs expense-Computer 901 Income summary Totals Debit Credit $ 39,064 12,718 2,545 1,860 3,120 8,000 $ 0 20,400 0 0 0 0 67,000 0 5,600 32,069 0 0 2,575 0 0 1,638 634 200 715 0 $ 99,069 $ 99,069 Business Solutions had the following transactions and events in December 2021. December 2 Paid $935 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 $4,150 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 $110 per day. December 14 Notified by Alex's Engineering Company that Business Solutions's bid of $7,500 on a proposed project has been accepted. Alex's paid a $1,600 cash advance to Business Solutions. December 15 Purchased $2,100 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 $6,525 cash. December 22-26 Took the week off for the holidays. December 28 Received $3,500 cash from Gomez Company on its receivable. December 29 Reimbursed S. Rey for business automobile mileage (400 miles at $0.23 per mile). December 31 Paid $1,200 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 $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 $110 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 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. 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-closing trial balance as of December 31, 2021. Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger. Note: If no entry is required for a transaction or event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 11 Paid $935 cash to Hillside Mall for Business Solutions's share of mall advertising costs. Note: Enter debits before credits. Date December 02 General Journal Debit Credit Record entry Clear entry View general journal Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger. Note: If no entry is required for a transaction or event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < 1 2 3 45678 Paid $470 cash for minor repairs to the company's computer. Note: Enter debits before credits. Date December 03 11 > General Journal Debit Credit Record entry Clear entry View general journal Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger. Note: If no entry is required for a transaction or event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 3 4 5678 Received $4,150 cash from Alex's Engineering Company for the receivable from November. Note: Enter debits before credits. Date December 04 11 General Journal Debit Credit View general journal Record entry Clear entry Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger. Note: If no entry is required for a transaction or event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 3 4 5678 Paid cash to Lyn Addie for six days of work at the rate of $110 per day. Note: Enter debits before credits. Date December 10 > 11 General Journal Debit Credit Record entry Clear entry View general journal Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger. Note: If no entry is required for a transaction or event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 11 Notified by Alex's Engineering Company that Business Solutions's bid of $7,500 on a proposed project has been accepted. Alex's paid a $1,600 cash advance to Business Solutions. Note: Enter debits before credits. Date December 14 General Journal Debit Credit Record entry Clear entry View general journal Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger. Note: If no entry is required for a transaction or event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 11 Purchased $2,100 of computer supplies on credit from Harris Office Products. Note: Enter debits before credits. Date December 15 General Journal Debit Credit Record entry Clear entry View general journal Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger. Note: If no entry is required for a transaction or event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 11 > Sent a reminder to Gomez Company to pay the fee for services recorded on November 8. Note: Enter debits before credits. Date December 16 General Journal Debit Credit Record entry Clear entry View general journal Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger. Note: If no entry is required for a transaction or event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 11 Completed a project for Liu Corporation and received $6,525 cash. Note: Enter debits before credits. Date December 20 General Journal Debit Credit Record entry Clear entry View general journal Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger. Note: If no entry is required for a transaction or event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < 1 .... 4 5 6 7 8 9 10 11 Received $3,500 cash from Gomez Company on its receivable. Note: Enter debits before credits. Date December 28 General Journal Debit Credit Record entry Clear entry View general journal Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger. Note: If no entry is required for a transaction or event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 ... 4 56-789 10 11 Reimbursed S. Rey for business automobile mileage (400 miles at $0.23 per mile). Note: Enter debits before credits. Date December 29 General Journal Debit Credit Record entry Clear entry View general journal Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger. Note: If no entry is required for a transaction or event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < 1 4 5 6 7 8 9 10 11 Paid $1,200 cash for dividends. Note: Enter debits before credits. General Journal Debit Credit Date December 31 Record entry Clear entry View general journal 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. Number 101 Account Title Cash 106 Accounts receivable 126 Computer supplies 128 Prepaid insurance 131 Prepaid rent 163 Office equipment 164 Accumulated depreciation-office equipment 167 Computer equipment 168 Accumulated depreciation-Computer equipment 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue 307 Common stock 318 Retained earnings 319 Dividends 403 Computer services revenue 612 613 Depreciation expense-Office equipment Depreciation expense-Computer equipment 623 Wages expense 637 Insurance expense 640 Rent expense 652 Computer supplies expense 655 Advertising expense 676 Mileage expense 677 Miscellaneous expenses 684 Repairs expense-Computer 901 Income summary Totals Debit Credit $ 39,064 12,718 2,545 1,860 3,120 8,000 $ 0 20,400 0 0 0 0 67,000 0 5,600 32,069 0 0 2,575 0 0 1,638 634 200 715 0 $ 99,069 $ 99,069 Business Solutions had the following transactions and events in December 2021. December 2 Paid $935 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 $4,150 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 $110 per day. December 14 Notified by Alex's Engineering Company that Business Solutions's bid of $7,500 on a proposed project has been accepted. Alex's paid a $1,600 cash advance to Business Solutions. December 15 Purchased $2,100 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 $6,525 cash. December 22-26 Took the week off for the holidays. December 28 Received $3,500 cash from Gomez Company on its receivable. December 29 Reimbursed S. Rey for business automobile mileage (400 miles at $0.23 per mile). December 31 Paid $1,200 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 $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 $110 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 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. 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-closing trial balance as of December 31, 2021. Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger. Note: If no entry is required for a transaction or event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 11 Paid $935 cash to Hillside Mall for Business Solutions's share of mall advertising costs. Note: Enter debits before credits. Date December 02 General Journal Debit Credit Record entry Clear entry View general journal Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger. Note: If no entry is required for a transaction or event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < 1 2 3 45678 Paid $470 cash for minor repairs to the company's computer. Note: Enter debits before credits. Date December 03 11 > General Journal Debit Credit Record entry Clear entry View general journal Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger. Note: If no entry is required for a transaction or event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 3 4 5678 Received $4,150 cash from Alex's Engineering Company for the receivable from November. Note: Enter debits before credits. Date December 04 11 General Journal Debit Credit View general journal Record entry Clear entry Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger. Note: If no entry is required for a transaction or event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 3 4 5678 Paid cash to Lyn Addie for six days of work at the rate of $110 per day. Note: Enter debits before credits. Date December 10 > 11 General Journal Debit Credit Record entry Clear entry View general journal Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger. Note: If no entry is required for a transaction or event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 11 Notified by Alex's Engineering Company that Business Solutions's bid of $7,500 on a proposed project has been accepted. Alex's paid a $1,600 cash advance to Business Solutions. Note: Enter debits before credits. Date December 14 General Journal Debit Credit Record entry Clear entry View general journal Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger. Note: If no entry is required for a transaction or event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 11 Purchased $2,100 of computer supplies on credit from Harris Office Products. Note: Enter debits before credits. Date December 15 General Journal Debit Credit Record entry Clear entry View general journal Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger. Note: If no entry is required for a transaction or event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 11 > Sent a reminder to Gomez Company to pay the fee for services recorded on November 8. Note: Enter debits before credits. Date December 16 General Journal Debit Credit Record entry Clear entry View general journal Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger. Note: If no entry is required for a transaction or event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 11 Completed a project for Liu Corporation and received $6,525 cash. Note: Enter debits before credits. Date December 20 General Journal Debit Credit Record entry Clear entry View general journal Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger. Note: If no entry is required for a transaction or event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < 1 .... 4 5 6 7 8 9 10 11 Received $3,500 cash from Gomez Company on its receivable. Note: Enter debits before credits. Date December 28 General Journal Debit Credit Record entry Clear entry View general journal Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger. Note: If no entry is required for a transaction or event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 ... 4 56-789 10 11 Reimbursed S. Rey for business automobile mileage (400 miles at $0.23 per mile). Note: Enter debits before credits. Date December 29 General Journal Debit Credit Record entry Clear entry View general journal Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger. Note: If no entry is required for a transaction or event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < 1 4 5 6 7 8 9 10 11 Paid $1,200 cash for dividends. Note: Enter debits before credits. General Journal Debit Credit Date December 31 Record entry Clear entry View general journal