After the success of the company's first two months, K. Wilson continues to operate Business Solutions. The December 31, adjusted trial balance of Business Solutions follows:

Required (100 points, 20 points each)

1. how to create an income statement for the month ended December 31.

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

3. how to create a balance sheet as of December 31.

4.Record and post the necessary closing entries for Business Solutions. Then create 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 Owner's 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: