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 Account Title 101 Cash 106 Accounts receivable 126 Computer supplies 128 Prepaid insurance Prepaid rent 131 163 Office equipment 164 167 168 201 210 Wages payable 236 307 318 319 403 612 Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation-Computer equipment Accounts 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 613 623 637 640 Rent expense 652 655 676 Mileage expense 677 Miscellaneous expenses 684 Repairs expense-Computer 901 Income summary Totals Computer supplies expense Advertising expense Debit $ 38,664 13,318 2,645 1,920 3,220 8,000 22,800 6,200 0 0 2,250 0 0 0 1,708 654 190 775 Credit $0 0 0 0 0 72,000 0 30,344 0 $ $ 102,344 102,344 Business Solutions had the following transactions and events in December 2021. December 2 Paid $925 cash to Hillside Mall for Business Solutions's share of mall. advertising costs. December 3 Paid $400 cash for minor repairs to the company's computer. December 4 Received $4,650 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 $7,800 on a proposed project has been accepted. Alex's paid a $2,200 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 $6,625 cash. December 22-26 Took the week off for the holidays. December 28 Received $3,700 cash from Gomez Company on its receivable. December 29 Reimbursed S. Rey for business automobile mileage (500 miles at $0.26 per mile). December 31 Paid $1,500 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. Required Requir... Requir... Requir... Requir... Requir... Requir... Requir... Requir... 1 2A 2B 3 4 5 6 7 8 Prepare journal entries to record each of the December transactions. Post those entri accounts in the ledger. (If no entry is required for a transaction/event, select "No jour required" in the first account field.) View transaction list View journal entry worksheet General Journal K K N K KN N IN No 1 2 3 4 5 6 7 8 9 10 11 Date December 02 December 03 December 04 December 10 December 14 December 15 December 16 December 20 December 28 December 29 December 31 Advertising expense Cash Repairs expense-Computer Cash Cash Accounts receivable Wages expense Cash Cash Unearned computer services revenue Computer supplies Cash No journal entry required Cash Computer services revenue Cash Accounts receivable Mileage expense Cash Dividends Cash Debit 925 400 4,650 660 2,200 2,100 6,625 3,700 130 1,500 Credit 925 400 4,650 660 2,200 2,100 6,625 3,700 130 1,500 Required Requir... Requir... Requir... Requir... Requir... Requir... Requir... Requir... 1 2A 2B 3 4 5 6 7 8 Prepare adjusting entries to reflect a through f. (If no entry is required for a transacti select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet General Journal No Transaction a. 1 2 3 4 5 6 b. C. d. Computer supplies expense Computer supplies f. Insurance expense Prepaid insurance Wages expense Cash Depreciation expense-Computer equipment Accumulated depreciation-Computer equipment e. Depreciation expense-Office equipment Accumulated depreciation Office equipment Rent expense Prepaid rent Debit 640 480 440 1,425 500 2,460 Credit 640 480 440 1,425 500 2,460 www. C Date December 01 Date December 01 Date December 01 Date December 01 Date December 01 101: Cash Date December 01 Debit Date December 01 Credit 126: Computer Supplies Debit Credit 131: Prepaid Rent Debit Credit Equipment Debit 164: Accumulated Depreciation-Office Date Credit Balance December 01 Equipment Debit 168: Accumulated Depreciation-Computer Credit 210: Wages Payable Debit Credit 307: Common Stock Debit Credit 319: Dividends Debit Balance Date 38,664 December 01 Credit Balance 2,645 Balance 3,220 Balance Balance 0 Balance 0 0 Balance 106: Accounts Receivable Debit Credit 6,200 Date December 01 Date December 01 Date December 01 Date 72,000 December 01 167: Computer Equipment Debit Date December 01 128: Prepaid Insurance Debit Credit 163: Office Equipment Debit Credit 201: Accounts Payable Debit Credit Balance 13,318 Balance 318: Retained Earnings Debit Credit 1,920 Balance Credit Balance 22,800 8,000 236: Unearned Computer Services Revenue Date Debit Credit Balance December 01 Balance 403: Computer Services Revenue Debit Date December 01 Balance 0 0 0 Credit Balance 30,344 Date December 01 Date December 01 Date December 01 Date December 01 612: Depreciation Expense-Office Equipment Credit Balance 319: Dividends Debit Date December 01 Credit Debit Date December 01 623: Wages Expense Debit Credit 655: Advertising Expense Debit Credit 640: Rent Expense Debit Credit 677: Miscellaneous Expense Debit Balance 6,200 Balance Date 0 December 01 Balance 403: Computer Services Revenue Date Debit Date 2,250 December 01 Balance December 01 1,708 Credit Balance 190 613: Depreciation Expense-Computer Date December 01 Credit Balance 30,344 Equipment Debit 652: Computer Supplies Expense Debit Date 0 December 01 Credit 637: Insurance Expense Debit Credit Debit Balance 676: Mileage Expense Debit Credit Balance Credit Balance 684: Repairs Expense-Computer Date December 01 Balance 0 0 0 654 Credit Balance 775 Required Requir... Requir... Requir... Requir... Requir... Requir... Requir... Req 7 1 2A 2B 3 4 5 6 Prepare an adjusted trial balance as of December 31, 2021. BUSINESS SOLUTIONS Adjusted Trial Balance December 31, 2021 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 $ EA Debit Credit 0 $ 0 Required Requir... Requir... Requir... Requir... Requir... Requ 1 2A 2B 3 4 5 E Prepare a classified balance sheet as of December 31, 2021 Current assets Plant assets BUSINESS SOLUTIONS Balance Sheet December 31, 2021 Assets Liabilities Total equity Total Liabilities and Equity Equity $ SASA $ 0 0 0 0 0 0 0 0 Required Requir... Requir... Requir... Requir... 1 2A 2B 3 4 Prepare a statement of retained earnings for th BUSINESS SOLUTIONS Statement of Retained Earnings For Three Months Ended December 31, 2021 Retained earnings, October 1, 2021 Retained earnings, December 31, 2021 $ 0 0 View transaction list Journal entry worksheet 1 2 3 4 Record the entry to close the revenue account(s). Note: Enter debits before credits. General Journal Date December 31 Record entry Note: Enter debits before credits. General Journal Journal entry worksheet < 1 2 3 4 Record the entry to close the Income summary account. Date December 31 Record entry Clear entry Debit Credit < Required 6 View general journal Debit Credit View general journal Required 8 > Journal entry worksheet < 12 3 4 Record the entry to close the expense account(s). Note: Enter debits before credits. General Journal Date December 31 Record entry Note: Enter debits before credits. General Journal Journal entry worksheet < 1 2 3 4 Record the entry to close the dividends account. Date December 31 Record entry Debit Clear entry Credit View general journal Debit Credit View general journal > View transaction list Journal entry worksheet 1 2 3 4 Record the entry to close the revenue account(s). Note: Enter debits before credits. General Journal Date December 31 Record entry Note: Enter debits before credits. General Journal Journal entry worksheet < 1 2 3 4 Record the entry to close the Income summary account. Date December 31 Record entry Clear entry Debit Credit < Required 6 View general journal Debit Credit View general journal Required 8 > Journal entry worksheet < 12 3 4 Record the entry to close the expense account(s). Note: Enter debits before credits. General Journal Date December 31 Record entry Note: Enter debits before credits. General Journal Journal entry worksheet < 1 2 3 4 Record the entry to close the dividends account. Date December 31 Record entry Debit Clear entry Credit View general journal Debit Credit View general journal > Required Requir... Requir... Requir... Requir... Requir... Requir. 1 2A 2B 3 4 5 6 Prepare an income statement for the three months ended Dec Revenue BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2021 Expenses Total expenses $ 0 0 Totals BUSINESS SOLUTIONS Post-Closing Trial Balance December 31, 2021 $ Debit Credit 0 $ 0 N 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 Account Title 101 Cash 106 Accounts receivable 126 Computer supplies 128 Prepaid insurance Prepaid rent 131 163 Office equipment 164 167 168 201 210 Wages payable 236 307 318 319 403 612 Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation-Computer equipment Accounts 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 613 623 637 640 Rent expense 652 655 676 Mileage expense 677 Miscellaneous expenses 684 Repairs expense-Computer 901 Income summary Totals Computer supplies expense Advertising expense Debit $ 38,664 13,318 2,645 1,920 3,220 8,000 22,800 6,200 0 0 2,250 0 0 0 1,708 654 190 775 Credit $0 0 0 0 0 72,000 0 30,344 0 $ $ 102,344 102,344 Business Solutions had the following transactions and events in December 2021. December 2 Paid $925 cash to Hillside Mall for Business Solutions's share of mall. advertising costs. December 3 Paid $400 cash for minor repairs to the company's computer. December 4 Received $4,650 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 $7,800 on a proposed project has been accepted. Alex's paid a $2,200 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 $6,625 cash. December 22-26 Took the week off for the holidays. December 28 Received $3,700 cash from Gomez Company on its receivable. December 29 Reimbursed S. Rey for business automobile mileage (500 miles at $0.26 per mile). December 31 Paid $1,500 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. Required Requir... Requir... Requir... Requir... Requir... Requir... Requir... Requir... 1 2A 2B 3 4 5 6 7 8 Prepare journal entries to record each of the December transactions. Post those entri accounts in the ledger. (If no entry is required for a transaction/event, select "No jour required" in the first account field.) View transaction list View journal entry worksheet General Journal K K N K KN N IN No 1 2 3 4 5 6 7 8 9 10 11 Date December 02 December 03 December 04 December 10 December 14 December 15 December 16 December 20 December 28 December 29 December 31 Advertising expense Cash Repairs expense-Computer Cash Cash Accounts receivable Wages expense Cash Cash Unearned computer services revenue Computer supplies Cash No journal entry required Cash Computer services revenue Cash Accounts receivable Mileage expense Cash Dividends Cash Debit 925 400 4,650 660 2,200 2,100 6,625 3,700 130 1,500 Credit 925 400 4,650 660 2,200 2,100 6,625 3,700 130 1,500 Required Requir... Requir... Requir... Requir... Requir... Requir... Requir... Requir... 1 2A 2B 3 4 5 6 7 8 Prepare adjusting entries to reflect a through f. (If no entry is required for a transacti select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet General Journal No Transaction a. 1 2 3 4 5 6 b. C. d. Computer supplies expense Computer supplies f. Insurance expense Prepaid insurance Wages expense Cash Depreciation expense-Computer equipment Accumulated depreciation-Computer equipment e. Depreciation expense-Office equipment Accumulated depreciation Office equipment Rent expense Prepaid rent Debit 640 480 440 1,425 500 2,460 Credit 640 480 440 1,425 500 2,460 www. C Date December 01 Date December 01 Date December 01 Date December 01 Date December 01 101: Cash Date December 01 Debit Date December 01 Credit 126: Computer Supplies Debit Credit 131: Prepaid Rent Debit Credit Equipment Debit 164: Accumulated Depreciation-Office Date Credit Balance December 01 Equipment Debit 168: Accumulated Depreciation-Computer Credit 210: Wages Payable Debit Credit 307: Common Stock Debit Credit 319: Dividends Debit Balance Date 38,664 December 01 Credit Balance 2,645 Balance 3,220 Balance Balance 0 Balance 0 0 Balance 106: Accounts Receivable Debit Credit 6,200 Date December 01 Date December 01 Date December 01 Date 72,000 December 01 167: Computer Equipment Debit Date December 01 128: Prepaid Insurance Debit Credit 163: Office Equipment Debit Credit 201: Accounts Payable Debit Credit Balance 13,318 Balance 318: Retained Earnings Debit Credit 1,920 Balance Credit Balance 22,800 8,000 236: Unearned Computer Services Revenue Date Debit Credit Balance December 01 Balance 403: Computer Services Revenue Debit Date December 01 Balance 0 0 0 Credit Balance 30,344 Date December 01 Date December 01 Date December 01 Date December 01 612: Depreciation Expense-Office Equipment Credit Balance 319: Dividends Debit Date December 01 Credit Debit Date December 01 623: Wages Expense Debit Credit 655: Advertising Expense Debit Credit 640: Rent Expense Debit Credit 677: Miscellaneous Expense Debit Balance 6,200 Balance Date 0 December 01 Balance 403: Computer Services Revenue Date Debit Date 2,250 December 01 Balance December 01 1,708 Credit Balance 190 613: Depreciation Expense-Computer Date December 01 Credit Balance 30,344 Equipment Debit 652: Computer Supplies Expense Debit Date 0 December 01 Credit 637: Insurance Expense Debit Credit Debit Balance 676: Mileage Expense Debit Credit Balance Credit Balance 684: Repairs Expense-Computer Date December 01 Balance 0 0 0 654 Credit Balance 775 Required Requir... Requir... Requir... Requir... Requir... Requir... Requir... Req 7 1 2A 2B 3 4 5 6 Prepare an adjusted trial balance as of December 31, 2021. BUSINESS SOLUTIONS Adjusted Trial Balance December 31, 2021 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 $ EA Debit Credit 0 $ 0 Required Requir... Requir... Requir... Requir... Requir... Requ 1 2A 2B 3 4 5 E Prepare a classified balance sheet as of December 31, 2021 Current assets Plant assets BUSINESS SOLUTIONS Balance Sheet December 31, 2021 Assets Liabilities Total equity Total Liabilities and Equity Equity $ SASA $ 0 0 0 0 0 0 0 0 Required Requir... Requir... Requir... Requir... 1 2A 2B 3 4 Prepare a statement of retained earnings for th BUSINESS SOLUTIONS Statement of Retained Earnings For Three Months Ended December 31, 2021 Retained earnings, October 1, 2021 Retained earnings, December 31, 2021 $ 0 0 View transaction list Journal entry worksheet 1 2 3 4 Record the entry to close the revenue account(s). Note: Enter debits before credits. General Journal Date December 31 Record entry Note: Enter debits before credits. General Journal Journal entry worksheet < 1 2 3 4 Record the entry to close the Income summary account. Date December 31 Record entry Clear entry Debit Credit < Required 6 View general journal Debit Credit View general journal Required 8 > Journal entry worksheet < 12 3 4 Record the entry to close the expense account(s). Note: Enter debits before credits. General Journal Date December 31 Record entry Note: Enter debits before credits. General Journal Journal entry worksheet < 1 2 3 4 Record the entry to close the dividends account. Date December 31 Record entry Debit Clear entry Credit View general journal Debit Credit View general journal > View transaction list Journal entry worksheet 1 2 3 4 Record the entry to close the revenue account(s). Note: Enter debits before credits. General Journal Date December 31 Record entry Note: Enter debits before credits. General Journal Journal entry worksheet < 1 2 3 4 Record the entry to close the Income summary account. Date December 31 Record entry Clear entry Debit Credit < Required 6 View general journal Debit Credit View general journal Required 8 > Journal entry worksheet < 12 3 4 Record the entry to close the expense account(s). Note: Enter debits before credits. General Journal Date December 31 Record entry Note: Enter debits before credits. General Journal Journal entry worksheet < 1 2 3 4 Record the entry to close the dividends account. Date December 31 Record entry Debit Clear entry Credit View general journal Debit Credit View general journal > Required Requir... Requir... Requir... Requir... Requir... Requir. 1 2A 2B 3 4 5 6 Prepare an income statement for the three months ended Dec Revenue BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2021 Expenses Total expenses $ 0 0 Totals BUSINESS SOLUTIONS Post-Closing Trial Balance December 31, 2021 $ Debit Credit 0 $ 0 N

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The detailed answer for the above question is provided below Requirement a Date General Journal Debit Credit Dec02 Advertising expense 925 Cash 925 To record advertising expense paid Dec03 Repairs exp... View the full answer