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After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30, 2019, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2019) follows. No. Account Title 101 Cash Debit Credit 106 Accounts receivable $ 38,464 126 Computer supplies 12,818 128 Prepaid insurance 2,645 131 2,100 Prepaid rent 163 3, 120 Office equipment 164 Accumulated depreciation-office equipment 8,680 $ 167 Computer equipment 23,200 168 Accumulated depreciation-Computer equipment 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue 307 Common stock 69,000 318 Retained earnings 319 Dividends 5,800 403 Computer services revenue 33,394 612 Depreciation expense-office equipment 613 Depreciation expense-Computer equipment 623 Wages expense 2,300 637 Insurance expense 640 @ Rent expense 652 Computer supplies expense 655 Advertising expense 1,698 676 Mileage expense 684 200 677 Miscellaneous expenses 765 684 Repairs expense Computer $102,394 $102,394 Totals Business Solutions had the following transactions and events in December 2019. Dec. 2 Paid $950 cash to Hillside Mall for Business Solutions' share of mall advertising costs. 3 Paid $480 cash for minor repairs to the company's computer. 4 Received $4, 150 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 $100 per day. 14 Notified by Alex's Engineering Co. that Business Solutions' bid of $7,606 on a proposed project has been accepted. Alex's paid a $2,400 cash advance to Business Solutions. 15 Purchased $1,600 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 $6,575 cash. 22- 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 (680 miles at $0.31 per nite). 31 The company paid $1,200 cash in dividends. 26 cos 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 $670 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 $100 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 from Requirement 1 and adjusting entries from Requirement 2A. After completing Requirement 7 post the closing entries to the general ledger accounts 3. Prepare an adjusted trial balance as of December 31, 2019. 4. Prepare an income statement for the three months ended December 31, 2019 5. Prepare a statement of retained earnings for the three months ended December 31, 2019

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