9 0 1 2 Account Title Cash Accounts receivable BUSINESS SOLUTIONS Unadjusted Trial Balance. December 31, 2021 3 Computer supplies 4 Prepaid insurance 5 Prepaid rent 6 Office equipment 7 8 Computer equipment 9 0 Accumulated depreciation-Office equipment Accumulated depreciation-Computer equipment Accounts payable Debit $52,361 4,968 3,945 2,040 3,140 8,100 20,000 Credit 1 Wages payable 2 Uneamed computer services revenue 3 Common stock 4 Retained eamings Dividends 26 Computer services revenue 27 28 9 #1 Rent expense 32 Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense Computer supplies expense 33 Advertising expense 34 Mileage expense 35 Miscellaneous expenses 36 Repairs expense-Computer 87 Totals 1,400 2,400 71,000 7,100 34,429 0 0 2,780 0 0 0 2,658 742 210 1,185 $109,229 $109,229 38 389 40 11 42 The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company's first three months. 43 44 a. The December 31 inventory count of computer supplies shows $600 still available. 45 46 c. As of December 31, Lyn Addie has not been paid for four days of work at $105 per day. b. Three months have expired since the 12-month insurance premium was paid in advance. 47 48 49 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. d. The computer system, acquired on October 1, is expected to have a four-year life with no salvage value. 50 Required: 51 1. Prepare adjusting entries to reflect a through f 52 53 2. Prepare an adjusted trial balance as of December 31, 2021. 54 3. Prepare an income statement for the three months ended December 31, 2021. 55 5. Prepare a classified balance sheet as of December 31, 2021. 4. Prepare a statement of retained eamings for the three months ended December 31, 2021. Serial Problem Financial Stats