SP 3 Serial Problem Business Solutions (Static) LO P1, P2, P3, P4, P5 After the success of the company's first two months, Santana Roy 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 Solvions had the following transactions and events in December 2021 Decenter 2 Paid 51,025 cash to Hutlside Mall for Business Solutionsts share of matl advertising costs. Deceeber 10 Pald eash to Lyn Adale for six days of work at the rate of $125 per day. Deceber 14 Wotified by Atex's Engineoring Compony that business solutions's bid of 37 , oea on a proposed project. has. been accepted. Alex's pald a \$1, 50 a cash advance to business Solutions. Decenber 16 Sent a resinder to Gonez Cospany to pay the fee for services recorded on Novenber 8. Decenber 20 completed a project for Liv Corporation and received 55,625 cash. Decenber 28 . Received $3,000 cash fron cosez Cospany on its receivable. Decenber 29 Reinbursed 5 , Rey for business autonobile aiteage ( 600 miles at $0.32 per nite). Decenber 31 paid $1, 5 en cash for dividends. The fortowing additionat 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 imventory count of computer supplies shows $580 still available. b. Three months have expired since the 12 -month insurance premium was paid in advance. c. As-or December 31 , tyn Addle has not been pald for four days of work at 5125 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 fedger. 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 clasing entries as of December 31, 2021. 8. Prepare a post-closing trial balance as of December 31,2021