Reference no: EM132484268

After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30, 2019, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2019) follows.

Account Title Debit Credit

101 Cash $ 38,364

106 Accounts receivable 13,318

126 Computer supplies 2,545

128 Prepaid insurance 1,860

131 Prepaid rent 3,080

163 Office equipment 8,400

164 Accumulated depreciation-Office equipment $ 0

167 Computer equipment 23,200

168 Accumulated depreciation-Computer equipment 0

201 Accounts payable 0

210 Wages payable 0

236 Unearned computer services revenue 0

307 Common stock 64,000

318 Retained earnings 0

319 Dividends 5,900

403 Computer services revenue 38,269

612 Depreciation expense-Office equipment 0

613 Depreciation expense-Computer equipment 0

623 Wages expense 2,275

637 Insurance expense 0

640 Rent expense 0

652 Computer supplies expense 0

655 Advertising expense 1,708

676 Mileage expense 634

677 Miscellaneous expenses 230

684 Repairs expense-Computer 755

Totals $ 102,269 $ 102,269

Business Solutions had the following transactions and events in December 2019.

1. Dec. 2 Paid $940 cash to Hillside Mall for Business Solutions' share of mall advertising costs.
2. 3 Paid $500 cash for minor repairs to the company's computer.
3. 4 Received $4,950 cash from Alex's Engineering Co. for the receivable from November.
4. 10 Paid cash to Lyn Addie for six days of work at the rate of $110 per day.
5. 14 Notified by Alex's Engineering Co. that Business Solutions' bid of $7,000 on a proposed project has been accepted. Alex's paid a $2,400 cash advance to Business Solutions.
6. 15 Purchased $1,200 of computer supplies on credit from Harris Office Products.
7. 16 Sent a reminder to Gomez Co. to pay the fee for services recorded on November 8.
8. 20 Completed a project for Liu Corporation and received $6,325 cash. 22-26 Took the week off for the holidays.
9. 28 Received $3,700 cash from Gomez Co. on its receivable.
10. 29 Reimbursed S. Rey for business automobile mileage (400 miles at $0.26 per mile).
11. 31 The company paid $1,400 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.

1. The December 31 inventory count of computer supplies shows $590 still available.
2. Three months have expired since the 12-month insurance premium was paid in advance.
3. As of December 31, Lyn Addie has not been paid for four days of work at $110 per day.
4. The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.
5. The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.
6. Three of the four months' prepaid rent have expired.

Required:

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

Question 2-a. adjusting entries to reflect a through f.

Question 2-b. Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger.

Question 3.an adjusted trial balance as of December 31, 2019.

Question 4. income statement for the three months ended December 31, 2019.

Question 5. statement of retained earnings for the three months ended December 31, 2019.

Question 6. balance sheet as of December 31, 2019.

Question 7. Record and post the necessary closing entries as of December 31, 2019.

Question 8. post-closing trial balance as of December 31, 2019.