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 . December 2 Paid $930 cash to II111side Mall tor Buniness Solutians'n share of mall advertising costs. Devember 3 Pald $450 eash for minor repairn to the company' computer. December 4 Received $3,950 eash fron Alex's Eogineering Company for the receivable from November. December 10 Paid cash to Lyn hddie for six daye of work at the rate of $105 per day. Decesber 14 Notified by Alex's Ingineering company that Duainess solutions'a bid of $3,500 on a propesed project has been accepted. Alex's paid a $1,800 eash advance to Businem solutions. Deceaber 15 Furchased $1,700 of conpater supplies on erodit fron Barria office Produets. Deceaber 16 font a reninder to Gonez Conpany to pay the fee for services recorded on sovenber B. December 20 Coepleted a project for Liu Corporation and received 56,225 cash. Decenber 2226 Took the week off for the holidays. Decenber 28 Received $3,700 cash tron Cone: Coepany on iten receivable. Decenber 29 Reimburned S. Rey for basiness automobile mileage (400 miles at \$0,31 per milo). Decenber 31 Paid $1,100 eash 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 $590 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. 1. Prepare journal entries to record each of the December transactions. Post those entrles to the accounts in the ledger. Required: 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 ledget. 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. Preoare a post-closine trial balance as of December 31. 2021
