After the success of the company$$s first two months, Santana Rey continues to operate Business Solutions. The November $30,2020,$ unadjusted trial balance of Business Solutions $($reflecting its transactions for October and November of $2020)$ follows.

Number Account Title Debit Credit

$101$ Cash $ $38,864$

$106$ Accounts receivable $13,118$

$126$ Computer supplies $2,645$

$128$ Prepaid insurance $1,980$

$131$ Prepaid rent $3,060$

$163$ Office equipment $8,800$

$164$ Accumulated depreciation$$Office equipment $ $0$

$167$ Computer equipment $21,200$

$168$ Accumulated depreciation$$Computer equipment $0$

$201$ Accounts payable $0$

$210$ Wages payable $0$

$236$ Unearned computer services revenue $0$

$307$ Common stock $70,000$

$318$ Retained earnings $0$

$319$ Dividends $6,200$

$403$ Computer services revenue $31,584$

$612$ Depreciation expense$$Office equipment $0$

$613$ Depreciation expense$$Computer equipment $0$

$623$ Wages expense $2,450$

$637$ Insurance expense $0$

$640$ Rent expense $0$

$652$ Computer supplies expense $0$

$655$ Advertising expense $1,718$

$676$ Mileage expense $604$

$677$ Miscellaneous expenses $220$

$684$ Repairs expense$$Computer $725$

Totals $ $101,584$ $ $101,584$

Business Solutions had the following transactions and events in December $2020.$

December $2$ Paid $$980$ cash to Hillside Mall for Business Solutions's share of mall advertising costs.

December $3$ Paid $$410$ cash for minor repairs to the company$$s computer.

December $4$ Received $$3,950$ cash from Alex$$s Engineering Co$.$ for the receivable from November.

December $10$ Paid cash to Lyn Addie for six days of work at the rate of $$105$ per day.

December $14$ Notified by Alex$$s Engineering Company that Business Solutions's bid of $$7,200$ on a proposed project has been accepted. Alex$$s paid a $$1,700$ cash advance to Business Solutions.

December $15$ Purchased $$1,400$ of computer supplies on credit from Harris Office Products.

December $16$ Sent a reminder to Gomez Company to pay the fee for services recorded on November $8.$

December $20$ Completed a project for Liu Corporation and received $$6,575$ cash.

December $22-26$ Took the week off for the holidays.

December $28$ Received $$3,900$ cash from Gomez Company on its receivable.

December $29$ Reimbursed S$.$ Rey for business automobile mileage $(400$ miles at $$0\mathrm{.}29$ per mile$).$

December $31$ The company paid $$1,200$ cash in 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.

The December $31$ inventory count of computer supplies shows $$650$ 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 $$105$ 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 from Requirement $1$ and adjusting entries from Requirement $2$A$.$ After completing Requirement $7,$ post the closing entries to the general ledger accounts.

$3.$ Prepare an adjusted trial balance as of December $31,2020.$

$4.$ Prepare an income statement for the three months ended December $31,2020.$

$5.$ Prepare a statement of retained earnings for the three months ended December $31,2020.$

$6.$ Prepare a balance sheet as of December $31,2020.$

$7.$ Record the necessary closing entries as of December $31,2019$ and then post the closing entries to the general ledger in Requirement $2$B$.$

$8.$ Prepare a post$-$closing trial balance as of December $31,2020.$