Serial Problem Business Solutions LO P1, P2, P3, P4, P5

After the success of the company’s first two months, Santana Reycontinues to operate Business Solutions. The November 30, 2015,unadjusted trial balance of Business Solutions (reflecting itstransactions for October and November of 2015) follows.

No.	Account Title	Debit			Credit
101	Cash	$	38,264
106	Accounts receivable		12,618
126	Computer supplies		2,545
128	Prepaid insurance		2,220
131	Prepaid rent		3,300
163	Office equipment		8,000
164	Accumulated depreciation—Office equipment				$	0
167	Computer equipment		20,000
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
307	Retainedearnings					0
319	Dividends		5,600
403	Computer services revenue					25,659
612	Depreciation expense—Office equipment		0
613	Depreciation expense—Computer equipment		0
623	Wages expense		2,625
637	Insurance expense		0
640	Rent expense		0
652	Computer supplies expense		0
655	Advertising expense		1,728
676	Mileage expense		704
677	Miscellaneous expenses		250
684	Repairs expense—Computer		805
	Totals	$	98,659		$	98,659

BusinessSolutions had the following transactions and events in December2015.

   

Dec.	2	Paid$1,025 cash to Hillside Mall for Business Solutions’ share of malladvertising costs.
	3	Paid$500 cash for minor repairs to the company’s computer.
	4	Received $3,950 cash from Alex’s Engineering Co. for the receivablefrom November.
	10	Paidcash to Lyn Addie for six days of work at the rate of $125 perday.
	14	Notified by Alex’s Engineering Co. that Business Solutions’ bidof $7,000 on a proposed project   has been accepted.Alex’s paid a $1,500 cash advance to Business Solutions.
	15	Purchased $1,100 of computer supplies on credit from Harris OfficeProducts.
	16	Sent areminder to Gomez Co. to pay the fee for services recorded onNovember 8.
	20	Completed a project for Liu Corporation and received $5,625cash.
22–26		Tookthe week off for the holidays.
	28	Received $3,000 cash from Gomez Co. on its receivable.
	29	Reimbursed S. Rey for business automobile mileage (600 miles at$0.32 per mile).
	31	Thecompany paid $1,500 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:

a.	The December 31inventory count of computer supplies shows $580 stillavailable.
b.	Three monthshave expired since the 12-month insurance premium was paid inadvance.
c.	As of December31, Lyn Addie has not been paid for four days of work at $125 perday.
d.	The computer system, acquired on October 1, is expected to havea four-year life with no salvage value.
e.	The office equipment, acquired on October 1, is expected to havea five-year life with no salvage value.
f.	Three of thefour months' prepaid rent has expired.

Required:

1.

Prepare journal entries to record each of the Decembertransactions and events for Business Solutions. (If noentry is required for a transaction/event, select "No Journal EntryRequired" in the first account field.) 2.1 Prepare adjustingentries to reflect a through f. 2.2 Post the journalentries to record each of the December transactions, adjustingentries to the accounts in the ledger. 3. Prepare an adjustedtrial balance as of December 31, 2015. 4. Prepare an incomestatement for the three months ended December 31, 2015. 5. Prepare a statement ofowner’s equity for the three months ended December 31, 2015.(Enter all amounts as positive values.) 6. Prepare a balancesheet as of December 31, 2015. 7. Record and post thenecessary closing entries for Business Solutions. (If noentry is required for a transaction/event, select "No Journal EntryRequired" in the first account field.) 8. Prepare a post-closingtrial balance as of December 31, 2015.