210 After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30, 2019, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2019) follows No. Account Title 101 Cash Debit Credit 106 Accounts receivable $ 30,564 126 Computer supplies 13,418 128 Prepaid Insurance 2,545 1,920 Prepaid rent 163 Office equipment 3,160 164 8,300 Accumulated depreciation office equipment 162 Computer equipment 24,000 168 Accumulated depreciation-Computer equipment 201 Accounts payable Wages payable 236 Unearned computer services revenue 307 Common stock 318 66,000 Retained earnings 319 Dividends 6,300 403 Computer services revenue 38,144 612 Depreciation expense-Office equipment 0 613 Depreciation expense-Computer equipment 623 Wages expense 2,600 637 Insurance expense 540 Rent expense 652 Computer supplies expense 655 Advertising expense 1,220 676 Mileage expense 624 677 Miscellaneous expenses 210 684 Repairs expense-Computer 275 Totals $104,144 $104,144 0 e Business Solutions had the following transactions and events in December 2019. Dec. 2. Paid $955 cash to Hillside Mall for Business Solutions share of mall advertising costs Paid $410 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 Addle for six days of work at the rate of $120 per day 14 Notified by Alex's Engineering Co. that Business Solutions bid of $7,300 on a proposed project has been accepted. Alex's paid a $2,200 cash advance to Business Solutions 15 Purchased $1,100 of computer supplies on credit from Harris Office Products 16 Sent a reminder to comet co, to pay the fee for services recorded on November 20 Combleted oroiect for Liu Corporation and received $5.925 cash w KORBIN COMPANY Comparative Income Statements For Years Ended December 31, 2019, 2018, and 2017 2019 2018 2017 Sales $493,010 $377,686 $262,100 Cost of goods sold 296,792 236, 809 167,744 Gross profit 196,218 140,877 94,356 Selling expenses 70,007 52,121 34,597 Administrative expenses 44,371 33,236 21,754 Total expenses 114,378 85,357 56,351 Income before taxes 81,840 55,520 38,005 Income tax expense 15, 222 11,382 7,715 Net income $ 66,618 $ 44,138 $ 30,290 KORBIN COMPANY Comparative Balance Sheets December 31, 2019, 2018, and 2017 2019 2018 2017 Assets Current assets $ 60,387 $ 40, 417 $ 54,029 Long-term investments 800 3,790 Plant assets, net 112, 148 102, 107 60,925 Total assets $ 172,535 $ 143,324 $118,744 Liabilities and Equity Current liabilities $ 25, 190 $ 21,355 $ 20,780 Common stock 68,000 68,000 50,000 Other paid-in capital 8,500 8,500 Retained earnings 5,556 70,845 45, 469 42,408 Total liabilities and equity $ 172,535 $ 143,324 $118, 744 210 After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30, 2019, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2019) follows No. Account Title 101 Cash Debit Credit 106 Accounts receivable $ 30,564 126 Computer supplies 13,418 128 Prepaid Insurance 2,545 1,920 Prepaid rent 163 Office equipment 3,160 164 8,300 Accumulated depreciation office equipment 162 Computer equipment 24,000 168 Accumulated depreciation-Computer equipment 201 Accounts payable Wages payable 236 Unearned computer services revenue 307 Common stock 318 66,000 Retained earnings 319 Dividends 6,300 403 Computer services revenue 38,144 612 Depreciation expense-Office equipment 0 613 Depreciation expense-Computer equipment 623 Wages expense 2,600 637 Insurance expense 540 Rent expense 652 Computer supplies expense 655 Advertising expense 1,220 676 Mileage expense 624 677 Miscellaneous expenses 210 684 Repairs expense-Computer 275 Totals $104,144 $104,144 0 e Business Solutions had the following transactions and events in December 2019. Dec. 2. Paid $955 cash to Hillside Mall for Business Solutions share of mall advertising costs Paid $410 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 Addle for six days of work at the rate of $120 per day 14 Notified by Alex's Engineering Co. that Business Solutions bid of $7,300 on a proposed project has been accepted. Alex's paid a $2,200 cash advance to Business Solutions 15 Purchased $1,100 of computer supplies on credit from Harris Office Products 16 Sent a reminder to comet co, to pay the fee for services recorded on November 20 Combleted oroiect for Liu Corporation and received $5.925 cash w KORBIN COMPANY Comparative Income Statements For Years Ended December 31, 2019, 2018, and 2017 2019 2018 2017 Sales $493,010 $377,686 $262,100 Cost of goods sold 296,792 236, 809 167,744 Gross profit 196,218 140,877 94,356 Selling expenses 70,007 52,121 34,597 Administrative expenses 44,371 33,236 21,754 Total expenses 114,378 85,357 56,351 Income before taxes 81,840 55,520 38,005 Income tax expense 15, 222 11,382 7,715 Net income $ 66,618 $ 44,138 $ 30,290 KORBIN COMPANY Comparative Balance Sheets December 31, 2019, 2018, and 2017 2019 2018 2017 Assets Current assets $ 60,387 $ 40, 417 $ 54,029 Long-term investments 800 3,790 Plant assets, net 112, 148 102, 107 60,925 Total assets $ 172,535 $ 143,324 $118,744 Liabilities and Equity Current liabilities $ 25, 190 $ 21,355 $ 20,780 Common stock 68,000 68,000 50,000 Other paid-in capital 8,500 8,500 Retained earnings 5,556 70,845 45, 469 42,408 Total liabilities and equity $ 172,535 $ 143,324 $118, 744