SP $3$ Serial Problem Business Solutions $($Algo$)$ LO P$1,$ P$2,$ P$3,$ P$4,$ P$5$

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.

NumberAccount TitleDebitCredit$101$Cash$ $38,364106$Accounts receivable$12,818126$Computer supplies$2,545128$Prepaid insurance$2,100131$Prepaid rent$3,080163$Office equipment$8,500164$Accumulated depreciation$$Office equipment$$$ $0167$Computer equipment$21,200168$Accumulated depreciation$$Computer equipment$0201$Accounts payable$0210$Wages payable$0236$Unearned computer services revenue$0307$Common stock$65,000318$Retained earnings$0319$Dividends$6,400403$Computer services revenue$35,479612$Depreciation expense$$Office equipment$0613$Depreciation expense$$Computer equipment$0623$Wages expense$2,175637$Insurance expense$0640$Rent expense$0652$Computer supplies expense$0655$Advertising expense$1,708676$Mileage expense$634677$Miscellaneous expenses$190684$Repairs expense$$Computer$765901$Income summary$0$Totals$ $100,479$$ $100,479$

Business Solutions had the following transactions and events in December $2021.$

December $2$Paid $$960$ cash to Hillside Mall for Business Solutions's share of mall advertising costs.December $3$Paid $$440$ cash for minor repairs to the company$$s computer.December $4$Received $$4,850$ cash from Alex$$s Engineering Company for the receivable from November.December $10$Paid cash to Lyn Addie for six days of work at the rate of $$125$ per day.December $14$Notified by Alex$$s Engineering Company that Business Solutions's bid of $$7,800$ on a proposed project has been accepted. Alex$$s paid a $$2,400$ cash advance to Business Solutions.December $15$Purchased $$1,600$ of computer supplies on credit from Harris Office Products.December $16$Sent a reminder to Gomez Company to pay the fee for services recorded on November $8.$December $20$Completed a project for Liu Corporation and received $$6,525$ cash.December $22-26$Took the week off for the holidays.December $28$Received $$3,400$ cash from Gomez Company on its receivable.December $29$Reimbursed S$.$ Rey for business automobile mileage $(500$ miles at $$0\mathrm{.}25$ per mile$).$December $31$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.

The December $31$ inventory count of computer supplies shows $$620$ still available.

Three months have expired since the $12-$month insurance premium was paid in advance.

As of December $31,$ Lyn Addie has not been paid for four days of work at $$125$ per day.

The computer system, acquired on October $1,$ is expected to have a four$-$year life with no salvage value.

The office equipment, acquired on October $1,$ is expected to have a five$-$year life with no salvage value.

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 $31,2021.$

$7-$a$.$ Record the necessary closing entries as of December $31,2021.$

$7-$b$.$ Each closing entry is posted automatically to the general ledger. $($This is for reference only. No student work is required.$)$

$8.$ Prepare a post$-$closing trial balance as of December $31,2021.$