Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

After the success of the company s first two months, Santana Rey continues to operate Business Solutions. The November 3 0 , 2 0 2

After the success of the companys 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.4
The December 31,2021, adjusted trial balance of Business Solutions (reflecting its transactions from October through December of 2021) follows.
20 points
\table[[Number,Account Title,Debit,Credit],[101,Cash,$ 51,446,],[106,Accounts receivable,5,168,],[126,Computer supplies,670,],[128,Prepaid insurance,1,485,],[131,Prepaid rent,760,],[163,Office equipment,8,300,],[164,Accumulated depreciation-Office equipment,,$ 415],[167,Computer equipment,21,200,],[168,Accumulated depreciation-Computer equipment,,1,325],[201,Accounts payable,,1,300],[210,Wages payable,,420],[236,Unearned computer services revenue,,1,700],[301,S. Rey, Capital,,69,000],[302,S. Rey, Withdrawals,7,400,],[403,Computer services revenue,,38,299],[612,Depreciation expense-Office equipment,415,],[613,Depreciation expense-Computer equipment,1,325,],[623,Wages expense,3,400,],[637,Insurance expense,495,],[640,Rent expense,2,280,],[652,Computer supplies expense,3,175,],[655,Advertising expense,2,743,],[676,Mileage expense,812,],[677,Miscellaneous expenses,240,],[684,Repairs expense-Computer,1,145,],[901,Income summary,,0],[,Totals,$ 112,459,$ 112,459]]
Required:
Prepare an income statement for the three months ended December 31,2021.
Prepare a statement of owner's equity for the three months ended December 31,2021. Hint: The S. Rey, Capital account balance was $0 on October 1, and owner investments were $69,000 this period.
Prepare a classified balance sheet as of December 31,2021.
Record the closing entries as of December 31,2021.
Prepare a post-closing trial balance as of December 31,2021.
Complete this question by entering your answers in the tabs below.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental Managerial Accounting Concepts

Authors: Edmonds, Tsay, olds

6th Edition

71220720, 78110890, 9780071220729, 978-0078110894

More Books

Students also viewed these Accounting questions