After the success of the company’s first two months, Santana Reycontinues to operate Business Solutions. The November 30, 2017,unadjusted trial balance of Business Solutions (reflecting itstransactions for October and November of 2017) follows.

No.	Account Title	Debit			Credit
101	Cash	$	38,264
106	Accounts receivable		12,818
126	Computer supplies		2,645
128	Prepaid insurance		1,860
131	Prepaid rent		3,240
163	Office equipment		8,800
164	Accumulated depreciation—Office equipment				$	0
167	Computer equipment		22,400
168	Accumulated depreciation—Computer equipment					0
201	Accounts payable					0
210	Wages payable					0
236	Unearned computer services revenue					0
307	Common stock					72,000
318	Retained earnings					0
319	Dividends		6,000
403	Computer services revenue					29,859
612	Depreciation expense—Office equipment		0
613	Depreciation expense—Computer equipment		0
623	Wages expense		2,525
637	Insurance expense		0
640	Rent expense		0
652	Computer supplies expense		0
655	Advertising expense		1,708
676	Mileage expense		654
677	Miscellaneous expenses		210
684	Repairs expense—Computer		735
	Totals	$	101,859		$	101,859

Business Solutions had the following transactions and events inDecember 2017.   

Dec.	2		Paid $965 cash to Hillside Mall for Business Solutions’ shareof mall advertising costs.
	3		Paid $460 cash for minor repairs to the company’scomputer.
	4		Received $4,050 cash from Alex’s Engineering Co. for thereceivable from November.
	10		Paid cash to Lyn Addie for six days of work at the rate of $110per day.
	14		Notified by Alex’s Engineering Co. that Business Solutions’ bidof $7,100 on a proposed project has been accepted. Alex’s paid a$2,300 cash advance to Business Solutions.
	15		Purchased $1,300 of computer supplies on credit from HarrisOffice Products.
	16		Sent a reminder to Gomez Co. to pay the fee for servicesrecorded on November 8.
	20		Completed a project for Liu Corporation and received $5,675cash.
	22–26		Took the week off for the holidays.
	28		Received $3,300 cash from Gomez Co. on its receivable.
	29		Reimbursed S. Rey for business automobile mileage (500 miles at$0.24 per mile).
	31		The company paid $1,400 cash in dividends.

The following additional facts are collected for use in makingadjusting entries prior to preparing financial statements for thecompany’s first three months:

1. The December 31 inventory count of computer supplies shows $620still available.
2. Three months have expired since the 12-month insurance premiumwas paid in advance.
3. As of December 31, Lyn Addie has not been paid for four days ofwork at $110 per day.
4. The computer system, acquired on October 1, is expected to havea four-year life with no salvage value.
5. The office equipment, acquired on October 1, is expected tohave a five-year life with no salvage value.
6. Three of the four months' prepaid rent has expired.

Required:
1. Prepare journal entries to record each of theDecember transactions and events for Business Solutions.
2-a. Prepare adjusting entries to reflect athrough f.
2-b. Post the journal entries to record each ofthe December transactions, adjusting entries to the accounts in theledger.
3. Prepare an adjusted trial balance as ofDecember 31, 2017.
4. Prepare an income statement for the threemonths ended December 31, 2017.
5. Prepare a statement of retained earnings forthe three months ended December 31, 2017.
6. Prepare a balance sheet as of December 31,2017.
7. Record and post the necessary closing entriesas of December 31, 2017.
8. Prepare a post-closing trial balance as ofDecember 31, 2017.