INFO

NEED

ADJUSTED TRAIL BALANCE

INCOME STATEMENT

OWNERS EQUITY

BALANCE SHEET

163 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 Debit Credit 101 Cash $ 38,264 106 Accounts receivable 12,618 126 Computer supplies 2,545 128 Prepaid insurance 2,220 131 Prepaid rent 3,300 Office equipment 8,00 164 Accumulated depreciation Office equipment $ 167 Computer equipment 20,000 168 Accumulated depreciation-Computer equipment 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue 302 5. Rey, Capital 73,000 302 5. Rey, Withdrawals 5,600 403 Computer services revenue 25,659 612 Depreciation expense-Office equipment 613 Depreciation expense--Computer equipment 623 Wages expense 2,625 637 Insurance expense 640 Rent expense e 652 Computer supplies expense 655 Advertising expense 1,728 676 Mileage expense 704 677 Miscellaneous expenses 250 684 Repairs expense-Computer 885 Totais $ 98,659 $98,659 e Business Solutions had the following transactions and events in December 2019. Dec. 2. Paid $1,025 cash to Hillside Mall for Business Solutions share of mall advertising costs. 3 Paid $5ee cash for minor repairs to the company's computer. 4 Received $3,950 cash from Alex's Engineering Co. for the receivable from November. 10 Paid cash to Lyn Addie for six days of work at the rate of $125 per day: 14 Notified by Alex's Engineering Co. that Business Solutions bid of $7,000 on a proposed project has been accepted. Alex's paid a $1,500 cash advance to Business Solutions. 15 Purchased $1,100 of computer supplies on credit from Harris Office Products. 16 Sent a reninder to Gomez Co. to pay the fee for services recorded on November 8. 20 Completed a project for Liu Corporation and received 55,625 cash. 22-26 Took the week off for the holidays. 28 Received $3,000 cash from Gomez Co. on its receivable. 29 Reimbursed S. Rey for business automobile mileage (600 miles at 50.32 per mile) 31 S. Rey withdrew $1,500 cash from the company for personal use. The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company's first three months. a. The December 31 inventory count of computer supplies shows $580 still available. b. Three months have expired since the 12 month insurance premium was paid in advance. c. As of December 31, Lyn Addie has not been paid for four days of work at $125 per day. d. The computer system, acquired on October 1, is expected to have a four year life with no salvage value. e. The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value 1. Three of the four months prepaid rent have expired. Required: 1. Prepare journal entries to record each of the December transactions and events for Business Solutions. 2-0. Prepare adjusting entries to reflect a through 2-b. Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger 3. Prepare an adjusted trial balance as of December 31, 2019 4. Prepare an income statement for the three months onded December 31, 2019 5. Prepare a statement of owner's equity for the three months ended December 31, 2019, 6. Prepare a balance sheet as of December 31, 2019 Cash Accounts Receivable Date Debit Credit Balance Date Debit Credit Balance Dec. 01 38,264 Dec. 01 12,618 Computer Supplies Debit Credit Date Dec. 01 Prepaid Insurance Debit Credit Balance 2.545 Date Dec, 01 Balance 2.220 Date Dec 01 Prepaid Rent Debit Credit Balance Office Equipment Debit Credit Date Dec 01 3,300 Balance 8,000 Prepaid Rent Debit Credit Office Equipment Debit Credit Date Date Balance Balance 3,300 Dec. 01 Dec. 01 8,000 Accumulated Depreciation Office Equipment Dato Debit Credit Balance Dec, 01 Computer Equipment Debit Credit Date Balance 20,000 0 Dec. 01 5 Accumulated Depreciation-Computer Equipment Date Debit Credit Balance Dec 01 Accounts Payable Debit Credit Date Dec 01 Balance 0 0 Wages Payable Dubit Credit Date Doc, on Balance Uneamed Computer Services Revenue Debit Credit Balance Dato Dec 01 0 0 S. Rey, Capital Debit Credit Date Doc on Balance 73.000 S. Roy. Withdrawals Debit Credit Date Dec 01 Balance 5,600 S. Rey, Capital Debit Credit S. Rey, Withdrawals Debit Credit Data Dec, 01 Balance 73,000 Date Dec. 01 Balance 5,600 Computer Services Revenue Debit Credit Depreciation Expense-Office Equipment Debit Credit Balance Date Date Balance 25,659 Dec 01 Dec 01 0 Depreciation Expense Computer Equipment Date Debit Credit Balance Dec. 01 Wages Expense Debit Credit Date Dec, 01 Balance 2,625 0 Insurance Expense Debit Credit Date Dec 01 Rent Expense Debit Credit Balance Doto Dec, 01 Balance 0 0 Computer Supplies Expanse Debit Credit Date Balance Date Advertising Expense Debit Credit Balance U Dec, 01 Dec. 31 Computer Supplies Expense Debit Credit Advertising Expense Debit Credit Balance Date Dato Dec 01 Balance 1,728 0 Dec. 01 Mileage Expense Debit Credit Miscellaneous Expenses Debit Credit Date Dec 01 Balance 704 Date Dec, 01 Balance 250 Repairs Expense - Computer Debit Credit Date Dec 01 Balance 805 Hajusteu na balance December 31, 2019 Account Title Debit Credit Cash Accounts receivable Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable Wages payable Unearned computer services revenue S. Rey, Capital S. Rey. Withdrawals Computer services revenue Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer Totals $ 0 S o Prepare an income statement for the three months ended December 31, 2019. BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2019 Revenue Expenses Total expenses 0 BUSINESS SOLUTIONS Statement of Owner's Equity For Three Months Ended December 31, 2019 S. Rey, Capital, October 1, 2019 0 S. Rey, Capital, December 31, 2019 $ 0