A balance sheet needs to be created, using the business solutions from the Santana Rey transactions.

After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30,20 unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2021) follows. Liabilities Equity Total equity Total Liabilities and Equity Business Solutions had the following transactions and events in December 2021. December 2 Paid $985 cash to Hiliside Mal1 for Business Solutions's share of mal1 advertising costs. December 3 paid $480 cash for ninor repairs to the company'a computer. December 4 Received \$4,150 cash from Alex's Engineering Company for the recoivable from November. December 10 Paid canh to Lyn Addie for six dayn of work at the rate of $110 per day. December 14 Notifled by Mlex's Engineering Coepany that Business Solutions's bid of $7,600 on a proposed project has been accepted. Alex's paid a $2,100 cash advance to Dusiness solutions. Decenber 15 purchased $1,700 of computer supplies on credit from Harris office Products. December 16 Sent a reminder to comez Conpany to pay the foe for services recorded on November 8. Deceaber 20 Completed a project for tiu Corporation and received $6,225 cash. December 22-26 Took the weok off for the holidays. December 28 Received $3,000 cash from Gomez Company on its receivable. December 29 Reimbursed S. Rey for business autonobile mileage (400 miles at 50.24 per nile). December 31 raid $1,000 eanh for dividends. 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 $630 still available. b. Three months have expired since the 12 -month insurance premium was poid in advance. c. As of December 31, Lyn Addie has not been paid for four days of work at $110 per day. d. The computer system, acquired on October 1 , is expected to have of 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. Post those entries to the accounts in the ledger 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, 2021. 4. Prepare an income statement for the three months ended December 31, 2021. 5. Prepare a statement of retained earnings for the three months ended December 31,2021 6. Prepare a classified bolance sheet as or December 31, 2021. 7. Record the necessary closing entries as of December 31,2021. 8. Prepare a post-ciosing trial balance os of December 31,2021