Business Solutions had the following transactions and events in December 2020. December 2 Paid $950 cash to Hillside Moll for Business Solutions's share of mall advertising costs. Decenber 3 Paid $460 cash for minor repairs to the company's computer. December 4 Received 54,150 cash from Alex's Engineering Co. for the recelvable from November. December 10 Paid cash to Lyn Addie for six days of work at the rate of $105 per day. December 14 Motified by Alex's. Engineering Company that Business Solutions's bid of $7,400 on a proposed project has been accepted. Alex's paid a $2,400 cash advance to lusiness Solutions. December 15 Purchased $1,800 of computer supplies on credit from Harris office Products. Decenber 16 Sent a reninder to Gomez Company to pay the fee for services recorded on November 8 . Decenber 20 Completed a project for Liu Corporation and received $6,425 cash. December 2226 Took the week off for the holidays. December 28 Received \$3, 100 cash fron Gomez Company on its receivable. December 29 Reimbursed $. Rey for business automobile nileage ( 500 miles at $0.25 per aile). December 31 The company paid $1,500 cash in dividends. 1. Complete the accounting equation for Business Solutions using the dollar amounts at December 31, 2020 in this format: 2. List the net income amount for Business Solutions for the year ended December 31, 2020. 3. Compute the Profit Margin for December 31, 2020 for Business Solutions. Show the computation. Is Business Solutions profit margin satisfactory? Explain your answer. HINT: for net sales use total revenue. 4. Calculate the Current Ratio for Business Solutions on December 31, 2020. Show the computation. Will Business Solutions be able to pay for its obligations in the near future? 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 month' prepaid rent have explred. Required: 1. Prepare joumal entries to record each of the December transactions and events for Business Solutions. 2-o. 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 2A. 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 monthis 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 2B. 8. Prepare a post-closing trial balance as of December 31,2020. 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