1. Prepare an income statement for the month ended December 31.

2. Prepare a statement of owner's equity for the month ended December 31. (Note: The company just began operations on January 1)

3. Prepare a balance sheet as of December 31.

4. Record and post the necessary closing entries for Business Solutions. Then prepare a post-closing trial balance as of December 31.

5. Based on your knowledge of GAAP, evaluate the financial statements you have prepared. How do you think the business is doing in its first year of operations? Would you invest in this business? Why or Why not?

Business Solutions
Income Statement
For Year Ended December 31

Business Solutions

Statement of Owners Equity

For Year Ended December 31

Business Solutions
Balance Sheet
For Year Ended December 31

Closing Entries:

Date	Account	Debit	Credit

Business Solutions

Post Closing Trial Balance

December 31

Analysis:

ACCT110 Assignment Wk 4 Homework updated 6.13.18 (1) - Word jeannie mccall File Home Insert Draw Design Layout References Mailings Review View Foxit PDF Tell me what you want to do Share Completing this assignment will help you meet the following Course Outcomes: Interpret and apply Generally Accepted Accounting Principles (GAAP) to analyze, record, and report financial information for a service business using computerization. Evaluate a complete accounting cycle including the analysis, recording process from source documents, and transaction summary, through post-closing trial balance for a service business using computerization. . Directions After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The December 31, adjusted trial balance of Business Solutions follows: Account Title $ 8,000 Cash Accounts recalvable Office supplics . . Trucks... 36,000 Accounts payable Incerest payable Long-term notes payable ?.wlson, Capital K. Wilson. Withdrawals 12,000 4,000 53,000 . . . . 20,000 Depreciation expense-Trucks Salaries expense Office supplies expense . Repairs expense Trucks lotals.... 61,000 2,000 $410000 S410,000 Page 1 of 6 590 words 100% NE 216 PM 7/19/2018