SP 3 Serial Problem Business Solutions (Algo) LO P1, P2, P3, P4, P5 After the success of the company's first two months, Sontana Rey continues to operate Business Solutions. The November 30,2021. unadjustod 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 $965 cash to Hiltside Matl for Business Solutions's share of nall advertising costs. decenber 3 Paid $480 cash for ninor repairs to the coopany's conputer. December 4 Received $4, 050 cash tron Alex's Engincering Conpany for the receivable fron Novenber. Decenber 10 Paid cash to Lya Addie for 51x days of work ot the rate of $120 per day. Decenber 14 Notifled by Alex's Engineering Coapany that Business Solutions's bid of $7,600 on a proposed project has been accepted. Alex's paid a $1,900 cash advance to Business Solutions. Decenber 15 Purchased $1, 2ea of computer supplies on credit fron Harris office Products. Decenber 16 Sent a reminder to Gomez Company to pay the tee for services recorded on Novenber 8. Decenber 20 conpleted a project for Liu Corporation and received $6,475 cash. Decenber 22-26 Took the week off for the holidays. Decenber 28 Received $3,600 cash froa Gonez Conpany on its receivable. Decenber 29 Reimbursed 5 . Rey for business autoaobile aileage (600 miles at $0.23 per nile). Decenber 31 paid $1,260 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 avallable. b. Three momths 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 $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 hove a five-year life with no salvage value. t. Three of the four months' prepaid rent have explred Required: 1. Prepare jourmal entries to record each of the December transactions. Post those entries to the accounts in the ledget. 2-a. Prepare adjusting entries to reflect a through f. 2.b. Post the journal entries to record eoch 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 an adjusted trial balance as of December 31,2021