After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 3

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After The Success Of The Company S First Two Months Santana Rey Continues To Operate Business Solutions The November 3 1 (38.36 KiB) Viewed 10 times

After The Success Of The Company S First Two Months Santana Rey Continues To Operate Business Solutions The November 3 2 (68.54 KiB) Viewed 10 times

After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30, 2020, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2020) follows. Account Title: Number 101 106 126 128 31 163 164 Accumulated depreciation-office equipment 167 168 201 210 236 307 318 319 403 612 613 623 637 640 652 655 676 Cash. Accounts receivable Computer supplies Prepaid insurance Prepaid rent office equipment 677 684 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 Debit $ 39,164 12,918 2,645 1,980 3,280 8,800 23,200 6,100 0 0 2,400 0 0 0 1,688 664 210 735 $ 103,784 Credit $0 0 0 0 0 67,000 0 36,784 $ 103,784 Business Solutions had the following transactions and events in December 2020.
December 2 Paid $1,000 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 $4,850 cash from Alex's Engineering Co. for the receivable from November. December 10 Paid cash to Lyn Addie for six days of work at the rate of $120 per day. December 14 Notified by Alex's Engineering Company that Business Solutions's bid of $7,600 on a proposed project has been accepted. Alex's paid a $2,400 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. pecember 20 Completed a project for Liu Corporation and received $5,875 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 (400 miles at $0.22 per mile). December 31 The company paid $1,200 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. a. The December 31 inventory count of computer supplies shows $600 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 $120 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 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 from Requirement 1 and adjusting entries from Requirement 2A. After completing Requirement 7, post the closing entries to the general ledger accounts. 3. Prepare an adjusted trial balance as of December 31, 2020. 4. Prepare an income statement for the three months ended December 31, 2020. 5. Prepare a statement of retained earnings for the three months ended December 31, 2020. 6. Prepare a balance sheet as of December 31, 2020. 7. Record the necessary closing entries as of December 31, 2019 and then post the closing entries to the general ledger in Requirement 28. 8. Prepare a post-closing trial balance as of December 31, 2020.