fter the success of the company’s first two months, Santana Rey continues to operate Business Solutions.

The November
No. Account Title Debit
101 Cash $ 38,564
106 Accounts receivable 13,018
126 Computer supplies 2,545
128 Prepaid insurance 1,980
131 Prepaid rent 3,200
163 Office equipment 8,100
164 Accumulated depreciation—Office equipment
167 Computer equipment 20,400
168 Accumulated depreciation—Computer equipment
201 Accounts payable
210 Wages payable
236 Unearned computer services revenue
307 Common stock
318 Retained earnings
319 Dividends 6,100
403 Computer services revenue
612 Depreciation expense—Office equipment 0
613 Depreciation expense—Computer equipment 0
623 Wages expense 2,325
637 Insurance expense 0
640 Rent expense 0
652 Computer supplies expense 0
655 Advertising expense 1,678
676 Mileage expense 654
677 Miscellaneous expenses 230
684 Repairs expense—Computer 735
Totals $ 99,529

Business Solutions had the following transactions and events in December 2016.
Dec. 2
3
4
10
14
15
16
20
22–26
28
29
31
The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for
1. The December 31 inventory count of computer supplies shows $590 still available.
2. Three months have expired since the 12-month insurance premium was paid in advance.
3. As of December 31, Lyn Addie has not been paid for four days of work at $115 per day.
4. The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.
5. The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.
6. 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. (If no entry is
olutions. The November 30, 2016, unadjusted trial balance of Business Solutions (reflecting its transactions for October and Novembe
Credit
Journal Entries
S.No Accounts Title Debit
Dec-02 Advertising expense $ 930
Cash

Dec-03 Repairs expense—Computer $ 470

$ 0 Cash

0 Dec-04 Cash $ 4,450

0 Accounts receivable
0
0 Dec-10 Wages expense $ 690
68,000 Cash
0 (6 days * $ 115 per day)

31,529 Dec-14 Cash $ 2,000

Unearned computer services revenue

Dec-15 Computer supplies $ 1,900

Accounts payable

Dec-16 No journal entry

Dec-20 Cash $ 6,475

Computer services revenue

$ 99,529 Dec-28 Cash $ 3,800

Accounts receivable

Paid $930 cash to Hillside Mall Dec-29 Mileage expense $ 160

Paid $470 cash for minor repairs to the Cash
Received $4,450 cash from Alex’s Enginee(500 miles * $ 0.32 per mile)
Paid cash to Lyn Addie for six days of work at the rate of $115 per day.
Notified by Alex’s Engineering Dec-31 Dividends $ 1,000
Purchased $1,900 of computer supplies on Cash
Sent a reminder to Gomez Co. to pay the fee for services recorded on November 8.
Completed a project for Liu Corporation and received $6,475 cash.
Took the week off for the holidays. Adjusting entries
Received $3,800 cash from Gome S.No Accounts Title Debit
Reimbursed S. Rey for business 1 Computer supplies expense $ 3,855
The company paid $1,000 cash in dividendComputer supplies
financial statements for the company’s first three mo ($ 2,545 add $ 1,900 less $ 590)
 2 Insurance expense $ 800
Prepaid rent
($ 3,200/12 months * 3 months)

3 Wages expense $ 460

Wages payable
(4 days * $ 115 per day)
olutions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
4 Depreciation expense—Computer equipment $ 1,275
Accumulated depreciation—Computer equipment
($ 20,400/4 years * 3 months/12 months)

5 Depreciation expense—Office equipment $ 405

Accumulated depreciation—Office equipment
($ 8,100/5 years * 3 months/12 months)

6 Rent expense $ 2,400

Prepaid rent
(3/4 * $ 3,200)
tions for October and November of 2016) follows.

Credit

$ 930

$ 470

$ 4,450

$ 690

$ 2,000

$ 1,900

$ 6,475

$ 3,800

$ 160

$ 1,000

Credit

$ 3,855
 $ 800

$ 460

he first account field.)

$ 1,275

$ 405

$ 2,400