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. Business Solutions had the following transactions and events in December 2021. Business Solutions had the following transactions and events in December 2021. Decenber 2 Paid \$1, 025 cash to Hillside Mall for Business Solutions's share of nalt advertising costs. December 3 Paid $480 cash for minor repairs to the company's computer. Decenber 4 Received $4,950 cash fron Alex's Engineering Company for the receivable fron Novenber. Decenber 10 Paid cash to Lyn Addie for six days of work at the rate of $105 per day. Decenber 14 Notified by Alex's Engineering Company that Business Solutions's bid of $8,e00 on a proposed project has been accepted. Alex's paid a $2,100 cash advance to business Solutions. December 15 Purchased \$1,2ea of computer supplies on credit fron Harris office Products. Decenber 16 Sent a reminder to Gonez Company to pay the fee for services recorded on Novenber 8. Decenber 20 Completed a project for Liu Corporation and received $5,825 cash. December 22-26 Took the week off for the holidays. Decenber 28 Received $3,90 e cash from Gotiez Company on its receivable. Decenber 29 Reinbursed 5 . Rey for business autonobile mileage (6e0 niles at $0.30 per nile). December 31 Paid $1,460 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 5 hows $660 still avallable. 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. t. 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 adjusting entries to refiect a through f. Note: If no entry is required for a transaction or event, select "No journal entry required" in the first account field. 0420.02 \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ 307: Common Stock } \\ \hline Date & Debit & Credit & Balance \\ \hline December 01 & & & 68,000 \\ \hline & & +2 & \\ \hline & += & 2= & \\ \hline & +2 & +2 & \\ \hline \multicolumn{4}{|c|}{ 319: Dividends } \\ \hline Date & Debit & Credit & Balance \\ \hline December 01 & & - & 6,400 \\ \hline+ & y= & & \\ \hline+ & - & & \\ \hline & & & \\ \hline \multicolumn{4}{|c|}{ 612: Depreciation Expense-Office Equipment } \\ \hline Date & Debit & Credit & Balance \\ \hline Decomber 01 & & & 0 \\ \hline & 8 & & \\ \hline & & 2 & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline \multicolumn{4}{|c|}{ 655: Advertising Expense } & \multicolumn{4}{|c|}{ 676: Mileage Expense } \\ \hline Date & Debit & Credit & Balance & Date & Debit & Credit & Balance \\ \hline \multirow[t]{4}{*}{ December 01} & & & 1,648 & December 01 & +2 & +2 & \begin{tabular}{r} 634 \\ \end{tabular} \\ \hline & & & & & +2 & +2 & \\ \hline & & & +2 & & . & & \\ \hline & & & + & \begin{aligned} \\ \end{aligned} & & & a2 \\ \hline & & & + & & +2 & +2 & \\ \hline \multicolumn{4}{|c|}{ 677: Miscellaneous Expense } & \multicolumn{4}{|c|}{ 684: Repairs Expense-Computer } \\ \hline Date & Debit & Credit & Balance & Date & Debit & Credit & Balance \\ \hline \multirow[t]{4}{*}{ December 01} & & & 210 & December 01 & & & 785 \\ \hline & & 8 & +1 & & & & x2= \\ \hline & & 4 & & & & & \\ \hline & + & & & & & +2 & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline Depreciation expense-Computer equipment \\ \hline Wages expense \\ \hline Insurance expense \\ \hline Rent expense \\ \hline Computer supplies expense \\ \hline Advertising expense \\ \begin{tabular}{l} Mileage expense \\ \hline Miscellaneous expenses \end{tabular} \\ \hline Repairs expense Computer & & \\ \hline Totals & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline & & & 0 \\ \hline \multicolumn{4}{|c|}{ Liabilities } \\ \hline Accounts payable & 0 & & \\ \hline Wages payable & 0 & & \\ \hline Unearned computer services revenue & & & \\ \hline Total liabilities & 0 & & 0 \\ \hline \multicolumn{4}{|c|}{ Equity } \\ \hline Common stock & & & \\ \hline Retained earnings & 2 & & \\ \hline Total equity & & $ & 0 \\ \hline Total Liabilities and Equity & & $ & 0 \\ \hline \end{tabular}