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Serial Problem Business Solutions LO P1, P2, P3 After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30, 2017 unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2017) follows. Credit Debit $ 38,364 13,418 2,645 2,220 2,920 8.700 $ 20,600 168 210 No. Account Title 101 Cash 106 Accounts receivable 126 Computer supplies 128 Prepaid insurance 131 Prepaid rent 163 Office equipment 164 Accumulated depreciation-office equipment 167 Computer equipoent Accumulated depreciation-Computer equipment 201 Accounts payable Wages payable 236 Unearned computer Services revenue 301 S. Rey, Capital 302 S. Rey, withdrawals 403 Computer services revenue 612 Depreciation expense-office equipment Depreciation expense-Computer equipment 623 Wages expense 637 Insurance expense 640 Rent expense 652 Computer supplies expense 655 Advertising expense 676 Mileage expense 677 Miscellaneous expenses 684 Repairs expense Computer Totals 71,000 5,800 28,579 613 2,275 1,658 644 220 715 $ 99,579 $99,579 Business Solutions had the following transactions and events in December 2017 Dec. 2 Paid $955 cash to Hillside Mall for Business Solutions share of mall advertising costs. 3 Paid $490 cash for minor repairs to the company's computer. 4 Received $4,350 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 $115 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 $2,300 cash advance to Business Solutions 15 Purchased $1.900 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 B. 20 Completed a project for Liu Corporation and received $6,475 cash. 22- Took the week off for the holidays. 26 28 Received $3,700 cash from Gomez Col on its receivable 29 Reimbursed S Rey for business automobile mileage (500 miles at $0.28 per mile). 31 S. Rey withdrew $1,108 cask from the company for personal use. 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 $660 still available. b. Three months have expired since the 12-month insurance premium was paid in advance. c. As of December 31, Lyn Addle has not been paid for four days of work at $115 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 1. Three of the four months prepaid rent has 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 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, 2017 4. Prepare an income statement for the three months ended December 31, 2017 5. Prepare a statement of owner's equity for the three months ended December 31, 2017 6. Prepare a balance sheet as of December 31, 2017 Reg 2A Reg 1 Req 2B Reg 3 Reg 4 Reg 6 Reg 5 Prepare a statement of owner's equity for the three months ended December 31, 2017. BUSINESS SOLUTIONS Statement of Owner's Equity For Three Months Ended December 31, 2017 S. Rey, Capital, October 1, 2017 S Rey, Capital, December 31, 2017 Reg 4 Reg 5 Req 1 Reg 3 Reg 6 Req 2A Reg 2B Prepare a balance sheet as of December 31, 2017 BUSINESS SOLUTIONS Balance Sheet December 31, 2017 Assets Total assets Liabilities Total liabilities Equity Total liabilities and equity

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