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JournAfter 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 Debit Credit

$101$ Cash $ $38,564$

$106$ Accounts receivable $12,618$

$126$ Computer supplies $2,545$

$128$ Prepaid insurance $2,160$

$131$ Prepaid rent $3,140$

$163$ Office equipment $8,700$

$164$ 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 $73,000$

$318$ Retained earnings $0$

$319$ Dividends $5,900$

$403$ Computer services revenue $29,624$

$612$ Depreciation expense$$Office equipment $0$

$613$ Depreciation expense$$Computer equipment $0$

$623$ Wages expense $2,500$

$637$ Insurance expense $0$

$640$ Rent expense $0$

$652$ Computer supplies expense $0$

$655$ Advertising expense $1,668$

$676$ Mileage expense $634$

$677$ Miscellaneous expenses $230$

$684$ Repairs expense$$Computer $765$

$901$ Income summary $0$

Totals $ $102,624$ $ $102,624$

Business Solutions had the following transactions and events in December $2021.$

December $2$ Paid $$990$ cash to Hillside Mall for Business Solutions's share of mall advertising costs.

December $3$ Paid $$410$ cash for minor repairs to the company$$s computer.

December $4$ Received $$4,750$ cash from Alex$$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$$s Engineering Company that Business Solutions's bid of $$7,900$ on a proposed project has been accepted. Alex$$s paid a $$2,300$ cash advance to Business Solutions.

December $15$ Purchased $$1,700$ 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 $$6,525$ cash.

December $22-26$ Took the week off for the holidays.

December $28$ Received $$3,100$ cash from Gomez Company on its receivable.

December $29$ Reimbursed S$.$ Rey for business automobile mileage $(500$ miles at $$0\mathrm{.}25$ per mile$).$

December $31$ Paid $$1,100$ 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.

The December $31$ inventory count of computer supplies shows $$640$ still available.

Three months have expired since the $12-$month insurance premium was paid in advance.

As of December $31,$ Lyn Addie has not been paid for four days of work at $$110$ per day.

The computer system, acquired on October $1,$ is expected to have a four$-$year life with no salvage value.

The office equipment, acquired on October $1,$ is expected to have a five$-$year life with no salvage value.

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 $31,2021.$al entry worksheet

$1$

$2$

$3$

$4$

$5$

$6$

The December $31$ inventory count of computer supplies shows $$640$ still

available.

Note: Enter debits before credits.

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