After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30, 2021, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2021) follows.

Number 101 106 126 128 318 319 131 163. equipment 164 Accumulated depreciation-Office Computer equipment 167 168 Accumulated depreciation-Computer equipment 201 210 236 307 403 612 613 623 637 640 652 655 676 677 Account Title 684 901 Cash Accounts receivable Computer supplies Prepaid insurance Prepaid rent Office equipment Accounts payable Wages payable Unearned computer services revenue Common stock Retained earnings Dividends Computer services revenue Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer Income summary Totals. Debit $ 38,864 12,718 2,545 1,920 3,300 8,400 20,800 5,900 0 0 2,250 0 -0 0 1,638 644 230 725 $ 99,934 Credit $0 0 0 0 0 71,000 0 28,934 0 $ 99,934 Business Solutions had the following transactions and events in December 2021. December 2 Paid $990 cash to Hillside Mall for Business Solutions's share of mall advertising costs. December 3 Paid $430 cash for minor repairs to the company's computer. December 4 Received $4,050 cash from 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 $105 per day. December 14 Notified by Alex's Engineering Company that Business Solutions's bid of $7,900 on a proposed project has been accepted. Alex's paid a $1,600 cash advance to Business Solutions. December 15 Purchased $1,300 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 $6,025 cash. December 22-26 Took the week off for the holidays. December 28 Received $3,700 cash from Gomez Company on its receivable. December 29 Reimbursed S. Rey for business automobile mileage (400 miles at $0.32 per mile). December 31 Paid $1,500 cash 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 $600 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 paid for four days of work at $105 per day. d. The computer system, acquired on October 1, is expected to have a 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. Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger. 106: Accounts Receivable Date December 01 Date December 01 Date: December 011 101: Cash Debit Credit 126: Computer Supplies Debit Credit 131: Prepaid Rent Debit Credit Balance Date 38,864 December 01 Balance Date 2,545 December 01 Balance 3,300 Date: December 01 Debit Credit 128: Prepaid Insurance Debit Credit 163: Office Equipment Debit Credit Balance Balance 12,718 1,920 Balance. 8,400 Cash Accounts receivable Computer supplies Prepaid insurance Prepaid rent Office equipment Account Title Adjusted Trial Balance December 31, 2021 Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable Wages payable Unearned computer services revenue Common stock Retained earnings Dividends Computer services revenue Depreciation expense-Office equipment. Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer Totals Debit Credit Prepare an income statement for the three months ended December 31, 2021. BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2021 Revenue Expenses Total expenses ok Prepare a classified balance sheet as of December 31, 2021. BUSINESS SOLUTIONS Balance Sheet December 31, 2021 Assets Current assets Plant assets Total equity Total Liabilities and Equity Liabilities Equity Prepare a post-closing trial balance as of December 31, 2021. Totals BUSINESS SOLUTIONS Post-Closing Trial Balance December 31, 2021 Debit