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 202.1 ) follows. Business Solutions had the following transactions and events in December 2021. Decenber 2. Paid:5340 caah to Millaide Mall for Ruainean Solutiona's ahare of mall advertialag eosts. Decenber 3 Paid $430 cash for minor repairs to the coepany's conputer. Deceeber 4 kocelved $4,050 cash from Alex' 5 Englaeerisg Cospany for the recelvable free blovezber. Decebor 10 raid cash to Lyn Nddie for six days of vork at the rate of \$11s per day. December. 14 Kotified by alex' N Englneering Conpasy that pasiness Bolut lons' a bid of s7, 300 on a proposed project has becember is farchssed $2,006 of conputer nupplies on eredit from llarris office prodecta. Decenber 16: sent a reatinder to conez conpany to pay the fee for services recorded on Jiovenber f. Pecenher, 20 Completed a project for I.tu Corporation and received 55,625 cach. Decenber 2226 Took the week off for the holidays. Decenber 28 frecelved $3,260 cash fron conez conpeny on its redelvable. Deceaber 29 Reimburned S. Rey. for buatnese autcmobile milleage (500 niles at $0.28 per nile). Decenber 31 Paid 51,206 canh for dividends. The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the compary's first three months: a. The December 31 inventory count of computer supplies shows $660 still availabie. b. Three months have expled 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 $115 per day. d. The computer system, acquired on October 1 , is expected to have a fouf-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. \&. 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 lediger, 2-a. Prepare odjusting entries to refiect a through t 2.b. Post the journai entries to record each of the December transactions, adjusting entries to the accounts in the lediger, 3. Prepare an adjusted trial balance as of December 31, 2021. 4. Piepare an income statement for the three months tonded 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-elosing trial balance as of December 31. 2021. 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 202.1 ) follows. Business Solutions had the following transactions and events in December 2021. Decenber 2. Paid:5340 caah to Millaide Mall for Ruainean Solutiona's ahare of mall advertialag eosts. Decenber 3 Paid $430 cash for minor repairs to the coepany's conputer. Deceeber 4 kocelved $4,050 cash from Alex' 5 Englaeerisg Cospany for the recelvable free blovezber. Decebor 10 raid cash to Lyn Nddie for six days of vork at the rate of \$11s per day. December. 14 Kotified by alex' N Englneering Conpasy that pasiness Bolut lons' a bid of s7, 300 on a proposed project has becember is farchssed $2,006 of conputer nupplies on eredit from llarris office prodecta. Decenber 16: sent a reatinder to conez conpany to pay the fee for services recorded on Jiovenber f. Pecenher, 20 Completed a project for I.tu Corporation and received 55,625 cach. Decenber 2226 Took the week off for the holidays. Decenber 28 frecelved $3,260 cash fron conez conpeny on its redelvable. Deceaber 29 Reimburned S. Rey. for buatnese autcmobile milleage (500 niles at $0.28 per nile). Decenber 31 Paid 51,206 canh for dividends. The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the compary's first three months: a. The December 31 inventory count of computer supplies shows $660 still availabie. b. Three months have expled 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 $115 per day. d. The computer system, acquired on October 1 , is expected to have a fouf-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. \&. 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 lediger, 2-a. Prepare odjusting entries to refiect a through t 2.b. Post the journai entries to record each of the December transactions, adjusting entries to the accounts in the lediger, 3. Prepare an adjusted trial balance as of December 31, 2021. 4. Piepare an income statement for the three months tonded 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-elosing trial balance as of December 31. 2021