After the success of the company’s first two months, Santana Rey continues to operate Business Solutions. The November 30, 2020, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2020) follows.No.Account TitleDebitCredit101Cash$38,464 106Accounts receivable 13,418 126Computer supplies 2,545 128Prepaid insurance 1,980 131Prepaid rent 3,020 163Office equipment 8,500 164Accumulated depreciation—Office equipment $0167Computer equipment 22,400 168Accumulated depreciation—Computer equipment 0201Accounts payable 0210Wages payable 0236Unearned computer services revenue 0307Common stock 68,000318Retained earnings 0319Dividends 6,000 403Computer services revenue 34,004612Depreciation expense—Office equipment 0 613Depreciation expense—Computer equipment 0 623Wages expense 2,350 637Insurance expense 0 640Rent expense 0 652Computer supplies expense 0 655Advertising expense 1,708 676Mileage expense 684 677Miscellaneous expenses 180 684Repairs expense—Computer 755 Totals$102,004 $102,004Business Solutions had the following transactions and events in December 2020. Dec.2 Paid $1,010 cash to Hillside Mall for Business Solutions's share of mall advertising costs. 3 Paid $450 cash for minor repairs to the company’s computer. 4 Received $4,250 cash from Alex’s Engineering Co. for the receivable from November. 10 Paid cash to Lyn Addie for six days of work at the rate of $100 per day. 14 Notified by Alex’s Engineering Co. that Business Solutions's bid of $7,700 on a proposed project has been accepted. Alex’s paid a $1,700 cash advance to Business Solutions. 15 Purchased $2,000 of computer supplies on credit from Harris Office Products. 16 Sent a reminder to Gomez Co. to pay the fee for services recorded on November 8. 20 Completed a project for Liu Corporation and received $5,725 cash. 22–26 Took the week off for the holidays. 28 Received $3,100 cash from Gomez Co. on its receivable. 29 Reimbursed S. Rey for business automobile mileage (600 miles at $0.23 per mile). 31 The company paid $1,100 cash in 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 $640 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 $100 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 and events for Business Solutions.2-a. Prepare adjusting entries to reflect a through f.2-b. Post the journal entries to record each of the December transactions from Requirement 1 and adjusting entries from Requirement 2A. After completing Requirement 7, post the closing entries to the general ledger accounts.3. Prepare an adjusted trial balance as of December 31, 2020.4. Prepare an income statement for the three months ended December 31, 2020.5. Prepare a statement of retained earnings for the three months ended December 31, 2020.6. Prepare a balance sheet as of December 31, 2020.7. Record the necessary closing entries as of December 31, 2019 and then post the closing entries to the general ledger in Requirement 2B.8. Prepare a post-closing trial balance as of December 31, 2020.