After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30,2018 , unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2018) follows. Business Solutions had the following transactions and events in December 2018. Dec. 2 Paid $955 cash to Hillside Mall for Business Solutions' share of mall advertising costs. 3 Paid $410 cash for minor repairs to the company's computer. 4 Received $4,050 cash from Alex's Engineering Co. for the receivable from November. 10 Paid cash to Lyn Addie for six days of work at the rate of $120 per day. 14 Notified by Alex's Engineering Co. that Business Solutions' bid of $7,100 on a proposed project has been accepted. Alex's paid a $2,100 cash advance to Business Solutions. 15 Purchased $1,300 of computer supplies on credit from Harris Office Products. 16 Sent a reminder to Gomez Co. to pay the fee for services recorded on November 8. 20 Completed a project for Liu Corporation and received $6,175 cash. 22- Took the week off for the holidays. 26 28 Received $3,500 cash from Gomez Co. on its receivable. 29 Reimbursed S. Rey for business automobile mileage (500 miles at $0.23 per mile). 31 The company paid $1,100 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 $650 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. The following additional tacts are collected tor use in making adjusting entries prior to preparing tinancial statements tor the company's first three months: a. The December 31 inventory count of computer supplies shows $650 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, adjusting entries to the accounts in the ledger. 3. Prepare an adjusted trial balance as of December 31, 2018. 4. Prepare an income statement for the three months ended December 31, 2018. 5. Prepare a statement of retained earnings for the three months ended December 31, 2018. 6. Prepare a balance sheet as of December 31, 2018. 7. Record and post the necessary closing entries as of December 31, 2018. 8. Prepare a post-closing trial balance as of December 31, 2018. View transaction list View journal entry worksheet \begin{tabular}{|l|l|l|} \hline \multicolumn{1}{|c|}{ Adjusted Trial Balance } & & \\ \hline \multicolumn{1}{|c|}{ December 31, 2018 } & Credit \\ \hline \multicolumn{1}{|c|}{ Account Title } & & \\ \hline Cash & & \\ \hline Accounts receivable & & \\ \hline Computer supplies & & \\ \hline Prepaid insurance & & \\ \hline Prepaid rent & & \\ \hline Office equipment & & \\ \hline Accumulated depreciation-Office equipment & & \\ \hline Computer equipment & & \\ \hline Accumulated depreciation-Computer equipment & & \\ \hline Accounts payable & & \\ \hline Wages payable & & \\ \hline Unearned computer services revenue & & \\ \hline Common stock & & \\ \hline Retained earnings & & \\ \hline Dividends & & \\ \hline Computer services revenue & & \\ \hline Depreciation expense-Office equipment & & \\ \hline Depreciation expense-Computer equipment & & \\ \hline Wages expense & & \\ \hline Insurance expense & & \\ \hline Rent expense & & \\ \hline Combuter subblies expense & & \\ \hline \end{tabular} BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2018 Revenue BUSINESS SOLUTIONS Statement of Retained Earnings For Three Months Ended December 31, 2018 Retained earnings, October 1, 2018 Add: Net income Less: Dividends Retained earnings, December 31, 2018 $ 0 \begin{tabular}{|l|l|l|} \hline \multicolumn{1}{|c|}{ BUSINESS SOLUTIONS } & \multicolumn{1}{c|}{ Balance Sheet } & \\ \hline \multicolumn{1}{|c|}{ December 31, 2018 } & \\ \hline Assets & & \\ \hline Cash & & \\ \hline Accounts receivable & & \\ \hline Computer supplies & & \\ \hline Prepaid insurance & & \\ \hline Prepaid rent & & \\ \hline Office equipment & & \\ \hline Accumulated depreciation-Office equipment & & \\ \hline Computer equipment & & \\ \hline Accumulated depreciation-Computer equipment & & \\ \hline Total Assets & & \\ \hline Liabilities & & \\ \hline Accounts payable & & \\ \hline Wages payable & & \\ \hline Unearned computer services revenue & & \\ \hline Total Liabilities & & \\ \hline Equity & & \\ \hline Common stock & & \\ \hline Retained earnings & & \\ \hline Total Liabilities and Equity & & \\ \hline \end{tabular} Prepare a post-closinq trial balance as of December 31,2018. After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30,2018 , unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2018) follows. Business Solutions had the following transactions and events in December 2018. Dec. 2 Paid $955 cash to Hillside Mall for Business Solutions' share of mall advertising costs. 3 Paid $410 cash for minor repairs to the company's computer. 4 Received $4,050 cash from Alex's Engineering Co. for the receivable from November. 10 Paid cash to Lyn Addie for six days of work at the rate of $120 per day. 14 Notified by Alex's Engineering Co. that Business Solutions' bid of $7,100 on a proposed project has been accepted. Alex's paid a $2,100 cash advance to Business Solutions. 15 Purchased $1,300 of computer supplies on credit from Harris Office Products. 16 Sent a reminder to Gomez Co. to pay the fee for services recorded on November 8. 20 Completed a project for Liu Corporation and received $6,175 cash. 22- Took the week off for the holidays. 26 28 Received $3,500 cash from Gomez Co. on its receivable. 29 Reimbursed S. Rey for business automobile mileage (500 miles at $0.23 per mile). 31 The company paid $1,100 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 $650 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. The following additional tacts are collected tor use in making adjusting entries prior to preparing tinancial statements tor the company's first three months: a. The December 31 inventory count of computer supplies shows $650 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, adjusting entries to the accounts in the ledger. 3. Prepare an adjusted trial balance as of December 31, 2018. 4. Prepare an income statement for the three months ended December 31, 2018. 5. Prepare a statement of retained earnings for the three months ended December 31, 2018. 6. Prepare a balance sheet as of December 31, 2018. 7. Record and post the necessary closing entries as of December 31, 2018. 8. Prepare a post-closing trial balance as of December 31, 2018. View transaction list View journal entry worksheet \begin{tabular}{|l|l|l|} \hline \multicolumn{1}{|c|}{ Adjusted Trial Balance } & & \\ \hline \multicolumn{1}{|c|}{ December 31, 2018 } & Credit \\ \hline \multicolumn{1}{|c|}{ Account Title } & & \\ \hline Cash & & \\ \hline Accounts receivable & & \\ \hline Computer supplies & & \\ \hline Prepaid insurance & & \\ \hline Prepaid rent & & \\ \hline Office equipment & & \\ \hline Accumulated depreciation-Office equipment & & \\ \hline Computer equipment & & \\ \hline Accumulated depreciation-Computer equipment & & \\ \hline Accounts payable & & \\ \hline Wages payable & & \\ \hline Unearned computer services revenue & & \\ \hline Common stock & & \\ \hline Retained earnings & & \\ \hline Dividends & & \\ \hline Computer services revenue & & \\ \hline Depreciation expense-Office equipment & & \\ \hline Depreciation expense-Computer equipment & & \\ \hline Wages expense & & \\ \hline Insurance expense & & \\ \hline Rent expense & & \\ \hline Combuter subblies expense & & \\ \hline \end{tabular} BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2018 Revenue BUSINESS SOLUTIONS Statement of Retained Earnings For Three Months Ended December 31, 2018 Retained earnings, October 1, 2018 Add: Net income Less: Dividends Retained earnings, December 31, 2018 $ 0 \begin{tabular}{|l|l|l|} \hline \multicolumn{1}{|c|}{ BUSINESS SOLUTIONS } & \multicolumn{1}{c|}{ Balance Sheet } & \\ \hline \multicolumn{1}{|c|}{ December 31, 2018 } & \\ \hline Assets & & \\ \hline Cash & & \\ \hline Accounts receivable & & \\ \hline Computer supplies & & \\ \hline Prepaid insurance & & \\ \hline Prepaid rent & & \\ \hline Office equipment & & \\ \hline Accumulated depreciation-Office equipment & & \\ \hline Computer equipment & & \\ \hline Accumulated depreciation-Computer equipment & & \\ \hline Total Assets & & \\ \hline Liabilities & & \\ \hline Accounts payable & & \\ \hline Wages payable & & \\ \hline Unearned computer services revenue & & \\ \hline Total Liabilities & & \\ \hline Equity & & \\ \hline Common stock & & \\ \hline Retained earnings & & \\ \hline Total Liabilities and Equity & & \\ \hline \end{tabular} Prepare a post-closinq trial balance as of December 31,2018