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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 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 $0$

$301$ S$.$ Rey, Capital $73,000$

$302$ S$.$ Rey, Withdrawals $5,600$

$403$ 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 $ $98,659$ $ $98,659$

Business Solutions had the following transactions and events in December $2019.$

Dec. $2$ Paid $$1,025$ cash to Hillside Mall for Business Solutions$$ share of mall advertising 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 receivable from November.

$10$ Paid cash to Lyn Addie for six days of work at the rate of $$125$ per day.

$14$ Notified by Alex$$s Engineering Co$.$ that Business Solutions$$ bid of $$7,000$ on a proposed project has been accepted. Alex$$s paid a $$1,500$ cash advance to Business Solutions.

$15$ Purchased $$1,100$ of computer supplies on credit from Harris 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 $$5,625$ cash.

$2226$ Took the 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\mathrm{.}32$ per mile$).$

$31$ S$.$ Rey withdrew $$1,500$ cash 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.

The December $31$ inventory count of computer supplies shows $$580$ 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 $$125$ 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 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 $31,2019.$

$4.$ Prepare an income statement for the three months ended December $31,2019.$

$5.$ Prepare a statement of owner$$s equity for the three months ended December $31,2019.$

$6.$ Prepare a balance sheet as of December $31,2019.$

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