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. Business Solutions had the following transactions and events in December 2021. December 2 Pald $990 cash to Hillnide Mall for Business Solutions's share of mall advertising costs. Decomber 3 Paid $400 cash for minor repairs to the company's conputer. December 4 Received $4,150 cash fron Alex's Engineering Company for the receivable from November. December 10 Paid cash to Lyn Addie for 91x days of work at the rate of $105 per day. December 14 Notified by Alex's Engineering Coapany that Business Solutions's bid of $7,400 on a proposed project has been accepted. Alex's paid a $1, 800 cash advance to Business Solutions. December: 15 Purchased $1,500 of computer supplies on credit from Harris office Products. December 16 Sent a reninder to Gomez Company to pay the fee for services recorded on November 8. Decenber 20 completed a project for thiu Corporation and received $5,925cash. December 22-26 Took the week off for the holidays. December 28 received $3,300 cash fron Gosez Company on its receivable. December 29 Relabursed S. Rey for business automobile mileage ( 600 files at $0,32 per aile). December 31 Paid $1,300 cash for dividende. 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 $670 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 $105 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