SP 3 Serial Problem Business Solutions (Algo) LO P1, P2, P3, P4, P5 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 (reffecting its transactions for October and November of 2021) follows. Business Solutions had the following transactions and events in December 2021. Business Solutions had the folowing transactions and events in December 2021 . Decenber 2 Paid $975 cash to Millside Matl for Business Solutions's share of natl advertising costs. Decenber 3 Paid $469 cash for minor repairs to the conpany's conputer. Decenber 4. Recelved $4,750 cash tron Alex's Engineering Corpany for the receivable froe Novenber, Decenber 10 Paid cash to Lyn Addie for. six days of work at the rate of $125 per day. Decenber 14 Notified by Alex's Engineering Company that business solutions's bid of 57,660 an a proposed project has been accepted. Alex's paid a $2,10e cash advance to Business Solutions. Deceaber 15 Purchased $1,109 of cosputer supplies on credit fron Harris office Products. Decenber 16 Sent a reainder to Gomez Cospany to pay the fee for services recorded on Naverber \&. Decenter 20 Conpleted a project for Liu Corporation and received 36,425 cash. Deceaber 22-26 Took the week off for the hotidays. Decenber 28 Recelved $3,20 dash fron Gonez Coopany on its receivable. Deceaber 29 Reinbursed 5. Mey. for business automobile mileage (5ae eltes at sa.31 per mile). becenter 31 Paid $1,400 cash for dividends. The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for thecompany's first three months. a. The December 31 inventory count of computer supplies shows $650 siil avalable. 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 dayn of work at $125 per day. d. The computer system, acquired on October 1 , is expected to have a four-year life with no salvage value- 6. The affice equipment, acquired on October 1 , is expected to have a five-year life with no salvage value. t. Three of the four manths' prepaid rent have expired. Required: 1. Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledgec 2-a. Prepare adjusting entries to reflect a through f 2.b. Post the journaf entiles to record each of the December transactions, adjusting entries to the accounts in the ledger. 3. Prepare an acjusted trial balance as of December 31,2021 . 4. Propare an income statement for the three months ended December 31,2021 . 5. Prepare a statenent of retained eamings for the three months ended December 31, 2021 . 6. Prepare a classified bilance sheet as of December 31,2021 7. Record the necessary closing entries as of December 31, 2021. 8. Prepare a post-closing trai balance as of December 31, 2021
