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 Decenber. 2 Paid 5965 cash to Hillside Mall for Dusiness Solutions"s share of mall advertising costh. December 3 Paid 1480 cash for minor repairs to the coepany's coopoter. Decenber 4 Peceived 54,650 cash from Alex's Engineering Coepany tor the recelyable tron Novenber. Decenber 10 Paid cash to Lyo Addte for six days of work at the rate of $120 per day. becenber i4 Notilied by Alex's Engineering Coopany that business Solutions's bid of $7,604 on a proposed project has bees accepted. Alex's paid a \$1,940 cash advance to fusiness 5otutions. Deceeber 25 Purchased $1,2a0 of coeputer supplies on credit fron Harris office Products. Decenber 16 Sent a reninder to Gosez Conpany to pay the fee for services recorded on Novenber 8. becenter 20 Completed a project for Liu Corporation and received $6,475 cash. becenber-22-26 Took the week off for the holidays. Decenber 28 fecelved $3,500 cash fros cotez Cospany on its receivable. Deceober 29 Reinbursed S. Rey for business autenobile aileage (60e niles at 50.23 per mile). Decesber 31 Paid $1,204 cash for dividends. The following additional facts are collected for use in making adjusting entries peior to preparing financlal statements for the compomy's first three months. a. The Docember 31 inventory count of computer supplies shows $660 stil avaliable. b. Three months have expled since the 12 -month insurance premium was paid in advance. 6. As of December 31, Lyn Addie has not been paid for four days of work at $120 per doy. d. The computer system, acquired on October t, is expected to have a four-year life with no salvage value. e. The offce equigenent, acquired on October t, is expected to have a five-year ife wath no sakage value f. Three of the four months' prepoid rent have expired. Required: 1. Prepare joumal entries to record each of the December transacions. Post thase enties to the accounts in the ledger. 2-a. Prepare adjusting entries to reflect a through f 2.b. Post the joumal entiles to rocord each of the December transactions, adjusting entries to the accounts in the ledger 3. Prepare an adjusted tral balance os of December 31, 2021. 4. Prepore an income ststement for the theee months ended December 31, 2021 business solutions nad the following transactions and events in Uecember U1. Decenber 2 Pald $965 cash to Hillside Mall for Business Solutions's share of nall advertising costs. Decenber 4 Received $4,050 cash froa Alex's Engineering Conpany for the receivable from Novenber. Deceiber 10 Paid cash to Lyn Addie for six days of work at the rate of $120 per day. Decenber 14 Notified by Alex's Engineering Coapany that losiness Solutions's bid of 37 , 60e on a proposed project has been accepted. Alex's paid a $1,900 cash advance to Business 5olutions. December 15 Purchased $1,20e of computer supplies on credit from Harris office Products. Decenber 16 Sent a reninder to Gonez Company to pay the fee for services recorded on Novenber-8. December 20 Completed a project for Liu Corporation and received $6,475 cash. December 22-26 Took the week off for the holidays. Decenber 28 Received $3,600 cash from Gonez Conpany on its receivable. Decenber 29 Reinbursed S. Rey for business autonobile alieage ( 600miles at 50.23 per mile). Decenber 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 $660 still available. b. Three months have expired since the 12 -month insurancekremlum was paid in advance. c. As of December 31. Lyn Addie has not been paid for four days of work at $120 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. Prenare a claseified halance shept 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 a classified balance sheet as of December 31, 2021. Plant assets