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 (reflecting its transactions for October and November of 2021) follows. 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 $450 cash for minor repairs to the company's computer. December 4 Received $4,950 cash from Alex's Engineering Company for the receivable from November. December 10 Paid cash to Lyn Addie for six days of work at the rate of $110 per day. December 14 Notified by Alex's Engineering Company that Business Solutions's bid of $7,300 on a proposed project has been accepted. Alex's paid a $1,800 cash advance to Business Solutions. December 15 Purchased $1,300 of computer supplies on credit from Harris 0ffice 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 \$5,775 cash. December 22-26 Took the week off for the holidays. December 28 Received $3,900 cash from Gomez Company on its receivable. December 29 Reimbursed S. Rey for business automobile mileage (500 miles at $0.22 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 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 $110 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. 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. Complete this question by entering your answers in the tabs below. Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger. Note: If no entry is required for a transaction or event, select "No journal entry required" in the first account field. Journal entry worksheet 4 5 6 7 8 11 Paid $1,020 cash to Hillside Mall for Business Solutions's share of mall advertising costs. Note: Enter debits before credits. Journal entry worksheet Paid $450 cash for minor repairs to the company's computer. Note: Enter debits before credits. Journal entry worksheet 6 7 8 11 Received \$4,950 cash from Alex's Engineering Company for the receivable from November. Note: Enter debits before credits. Journal entry worksheet 6 7 8 Paid cash to Lyn Addie for six days of work at the rate of $110 per day. Note: Enter debits before credits. Journal entry worksheet 1 8 11 Notified by Alex's Engineering Company that Business Solutions's bid of $7,300 on a proposed project has been accepted. Alex's paid a $1,800 cash advance to Business Solutions. Note: Enter debits before credits. Journal entry worksheet 1 8 11 Purchased $1,300 of computer supplies on credit from Harris Office Products Note: Enter debits before credits. Journal entry worksheet 1 8 11 Sent a reminder to Gomez Company to pay the fee for services recorded on November 8. Note: Enter debits before credits. Journal entry worksheet 1 5 6 Completed a project for Liu Corporation and received $5,775 cash. Note: Enter debits before credits. Journal entry worksheet Received $3,900 cash from Gomez Company on its receivable. Note: Enter debits before credits. Journal entry worksheet Reimbursed S. Rey for business automobile mileage ( 500 miles at $0.22 per mile). Note: Enter debits before credits. Prepare adjusting entries to reflect a through f. Note: If no entry is required for a transaction or event, select "No journal entry required" in the first account field. Journal entry worksheet 56 The December 31 inventory count of computer supplies shows $590 still available. Note: Enter debits before credits. repare adjusting entries to reflect a through f. ote: If no entry is required for a transaction or event, select "No journal entry required" in the first account field. Journal entry worksheet 6 Three months have expired since the 12-month insurance premium was paid in advance. Note: Enter debits before credits. repare adjusting entries to reflect a through f. ote: If no entry is required for a transaction or event, select "No journal entry required" in the first account field. Journal entry worksheet 6 As of December 31, Lyn Addie has not been paid for four days of work at $110 per day. Note: Enter debits before credits. Prepare adjusting entries to reflect a through f. Note: If no entry is required for a transaction or event, select "No journal entry required" in the first account field. Journal entry worksheet The computer system, acquired on October 1, is expected to have a four-year life with no salvage value. Note: Enter debits before credits. Prepare adjusting entries to reflect a through f. Note: If no entry is required for a transaction or event, select "No journal entry required" in the first account field. Journal entry worksheet 1 The office equipment, acquired on October 1 , is expected to have a five-year life with no salvage value. Note: Enter debits before credits. Prepare adjusting entries to reflect a through f. Note: If no entry is required for a transaction or event, select "No journal entry required" in the first account field. Journal entry worksheet 234 Three of the four months' prepaid rent have expired. Note: Enter debits before credits. \begin{tabular}{|l||l|l|l|l|l|l|l|l|} \hline Required 1 & Required 2A & Required 2B & Required 3 & Required 4 & Required 5 & Required 6 & Required 7 & Required 8 \\ \hline \end{tabular} Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger. Required 1 Required 2A Required 2B: Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Prepare an adjusted trial balance as of December 31, 2021. \begin{tabular}{|l|l|l|} \hline \multicolumn{1}{|c|}{ Bdjusted Trial Balance } & \\ \hline \multicolumn{1}{|c|}{ December 31, 2021 } & \\ \hline & Credit \\ \hline Cash & & \\ \hline Accounts receivable & & \\ \hline Computer supplies & & \\ \hline Prepaid insurance & & \\ \hline Prepaid rent & & \\ \hline Office equipment & & \\ \hline Accumulated depreciation-Office equipment & & \\ \hline Computer equipment & & \\ \hline Accumulated depreciation-Computer equipment & & \\ \hline Accounts payable & & \\ \hline Wages payable & & \\ \hline Unearned computer services revenue & & \\ \hline Common stock & & \\ \hline Retained earnings & & \\ \hline Dividends & & \\ \hline Computer services revenue & & \\ \hline Depreciation expense-Office equipment & & \\ \hline Depreciation expense-Computer equipment & & \\ \hline Wages expense & & \\ \hline Insurance expense & & \\ \hline Rent expense & & \\ \hline Computer supplies expense & & \\ \hline Advertising expense & & \\ \hline Mileage expense & & \\ \hline Miscellaneous expenses & & \\ \hline Repairs expense-Computer & & \\ \hline Totals & & \\ \hline \end{tabular} Prepare an income statement for the three months ended December 31, 2021. repare a statement of retained earnings for the three months ended December 31, 2021. Prenare a classified balance sheet as of December 31. 2021. Record the necessary closing entries as of December 31, 2021. Journal entry worksheet Record the entry to close the revenue account(s). Note: Enter debits before credits. Prepare a post-closing trial balance as of December 31, 2021