After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30,2021 . inadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2021) follows. Business Solutions had the following transactions and events in December 2021. December 2 Paid $995 cash to Hillsido Mal1 for Business solutions's share of mall advertising costs. Decenber 3 Paid 5490 cash for ninor repairs to the company's computer. December 4 Received $4,250 caah from Alex's Engineering Conpany for the receivable fron Novenber. December 10 Paid cash to Lyn Addie for 51x days of work at the rate of $120 per day. December 14 Notified by Alex's Engineering Company that Business Solutions's bid of $7,300 on a proposed project has been accepted, Alex's paid a $1,800 cash advance to Business Solutions. December 15 Purchased $1,300 of computer supplies on credit from Barris 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 $6,625cash. Business Solutions had the following transactions and events in December 2021 . Deceeber 2 Paid $995 cash to Hillside Mall for Businens Solutions's share of nall advertising costs. December 3 Paid $490 cash for minor repairs to the company's computer. December 4 Received $4,250 cash fron Alex's Engineering Company for the receivable from November. December 10 Paid cash to Lyn Addie for six days of work at the rate of $120 per day. December 14 Notified by Alex's Engineering Cospany that Business solutions's bid of 57,300 on a proposed project han been accepted. Alex's paid a $1,800 cash advance to Business solutions. December 15 Purchased $1,300 of computer supplies on credit fros Harrin office Producta. Decenber 16 sent a reminder to Gonez Company to pay the fee for services recorded on Novenber 8. December 20 conpleted a project for tiu Corporation and received 56,625 cash. Decenber 2226 took the week off for the holidays. December 28 Received 53,300 canh from Gomez Cospany on its receivable. December 29 Reinburded 5 . Rey for business automobile mileage (400 miles at 50,28 per mile). Deceaber 31 Paid 51,300 easb 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 $650 still available. b. Three months have expired since the 12 -month insurance premium was paid in advance. c. As of December 31, Lyn Addie has not been pald for four days of work at $120 per day. d. The computer system, acquired on October 1, is expected to have o 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 balance sheet as of December 31, 2021 . 7. Record the necessary closing entries as of December 31,2021 . 8. Prepare a post-closing trial balance as of December 31,2021 . Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Paid $995 cash to Hillside Mall for Business Solutions's share of mall advertising costs. Note: Enter debits before credits. Paid $490 cash for minor repairs to the company's computer. Note: Enter debits before credits. Journal entry worksheet 67811 Received $4,250 cash from Alex's Engineering Company for the receivable from November. Note: Enter debits before credits. Paid cash to Lyn Addie for six days of work at the rate of $120 per day. Note: Enter debits before credits. Journal entry worksheet 7811 Notified by Alex's Engineering Company that Business Solutions's bid of $7,300 on a proposed project has been accepted. Alex's paid a $1,800 cash advance to Business Solutions. Note: Enter debits before credits. Purchased $1,300 of computer supplies on credit from Harris Office Products. Note: Enter debits before credits. Journal entry worksheet Prepare an income statement for the three months ended December 31, 2021. Prepare a statement of retained earnings for the three months ended December 31,2021. Prepare a classified balance sheet as of December 31, 2021. BUSINESS SOLUTIONS Balance Sheet December 31, 2021 Assets Current assets Plant assets Journal entry worksheet Record the entry to close the revenue account(s). Note: Enter debits before credits. Journal entry worksheet Record the entry to close the expense account(s). Note: Enter debits before credits. Journal entry worksheet Record the entry to close the Income summary account. Note: Enter debits before credits. Journal entry worksheet Prepare an income statement for the three months ended December 31, 2021. Prepare a statement of retained earnings for the three months ended December 31,2021. Prepare a classified balance sheet as of December 31, 2021. BUSINESS SOLUTIONS Balance Sheet December 31, 2021 Assets Current assets Plant assets Journal entry worksheet Record the entry to close the revenue account(s). Note: Enter debits before credits. Journal entry worksheet Record the entry to close the expense account(s). Note: Enter debits before credits. Journal entry worksheet Record the entry to close the Income summary account. Note: Enter debits before credits. Journal entry worksheet