SP 3 Serial Problem Business Solutions (Algo) LO P1, P2, P3, P4, P5After the success of the companys 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 Account Title Debit Credit101 Cash $ 38,364 106 Accounts receivable 13,118 126 Computer supplies 2,645 128 Prepaid insurance 2,160 131 Prepaid rent 3,260 163 Office equipment 8,800 164 Accumulated depreciationOffice equipment $ 0167 Computer equipment 21,600 168 Accumulated depreciationComputer equipment 0201 Accounts payable 0210 Wages payable 0236 Unearned computer services revenue 0307 Common stock 65,000318 Retained earnings 0319 Dividends 6,300 403 Computer services revenue 36,699612 Depreciation expenseOffice equipment 0 613 Depreciation expenseComputer equipment 0 623 Wages expense 2,175 637 Insurance expense 0 640 Rent expense 0 652 Computer supplies expense 0 655 Advertising expense 1,708 676 Mileage expense 624 677 Miscellaneous expenses 150 684 Repairs expenseComputer 795 901 Income summary 0 Totals $ 101,699 $ 101,699 Business Solutions had the following transactions and events in December 2021. December 2 Paid $1,020 cash to Hillside Mall for Business Solutions's share of mall advertising costs.December 3 Paid $470 cash for minor repairs to the companys computer.December 4 Received $4,550 cash from Alexs 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 Alexs Engineering Company that Business Solutions's bid of $7,700 on a proposed project has been accepted. Alexs paid a $1,900 cash advance to Business Solutions.December 15 Purchased $1,900 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 $6,375 cash.December 22-26 Took the week off for the holidays.December 28 Received $3,400 cash from Gomez Company on its receivable.December 29 Reimbursed S. Rey for business automobile mileage (600 miles at $0.31 per mile).December 31 Paid $1,200 cash for dividends.The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the companys first three months. The December 31 inventory count of computer supplies shows $600 still available.Three months have expired since the 12-month insurance premium was paid in advance.As of December 31, Lyn Addie has not been paid for four days of work at $120 per day.The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.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