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 Balance Sheet December 31, 2021 Assets Current assets \begin{tabular}{|l|l|l|} \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular} Plant assets \begin{tabular}{|r|r|r|} \hline & & \\ \hline & & \\ \hline & & \\ \hline & & 0 \\ \hline & & 0 \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular} Business Solutions had the following transactions and events in December 2021. Decenber 2 Paid 5965 cash to Hillside Mall for Business solutions's share of mall advertising costs. Decenber 3 Paid $450 cash for minor ropairs to the company'n compater. Decenber 4 Received $4,150 cash fron Nlex's Enqineering Conpany for the receivable fros November. December 10 paid eash to Lyn Addie for six days of work at the rate of $125 per day. Decenber 14 Notified by Alex's Engineering Conpany that Business Solutions's bid of $7,500 on a proposed project has been accepted. Nlex's paid a $1,700 cash advance to Buniness solutions. Decesber 15 Purchased $1,100 of computer supplies on eredit from Harris office products. Decenber 16 sent a reminder to Gomez company to pay the fee for services recorded on November 8. Decenber 20 Conpleted a project for Liu Corporation and received $5,675 cash. Decenber 2226 Took the veek off for the holldays. Decenber 28 Received $3,100 cash from Goenez Company on its receivable. December 29 Reinbursed S. Rey for business automobile mileage ( 500 miles at $0.30 per mile). December 31 paid $1,000cash 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 $680 still available. b. Three months have expired since the 12 -month insurance premium was paid in advance. c. As of December 31, Lyn Addle has not been paid for four days 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. 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 joumal 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. Prepare a statement of retained earnings for the three months ended December 31, 2021. Prepare an income statement for the three months ended December 31, 2021