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Need help filling out the statement of retained earnings After the success of the company's first two months, Santana Rey continues to operate Business Solutions.
Need help filling out the statement of retained earnings
After the success of the company's 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. \begin{tabular}{|l|l|} \hline \multicolumn{2}{|c|}{ BUSINESS SOLUTIONS } \\ \hline \multicolumn{2}{|c|}{ Statement of Retained Earnings } \\ \hline For Three Months Ended December 31, 2021 \\ \hline Retained earnings, October 1,2021 & \\ \hline & \\ \hline & \\ \hline Retained earnings, December 31,2021 & \\ \hline \end{tabular} Business Solutions had the following transactions and events in December 2021 . December 2 pald $995 cash to Hillside Mall for Business Solutions's share of mall advertising costr. December 3 Paid $480 cash for minor repairs to the company's computer. Decenber 4 Received $4,150 cash from Alex's Engineering Conpany for the receivable from Novembor. December 10 paid cash to Lyn Addie for six days of work at the rate of $110 per day. December 14 Hotified by Alex's Engineering Company that lusiness Solutions's bid of $7,600 on a proposed project has been accepted. Alex's paid a $2,100 cash advance to Buniness solutions. December 15 Purchased $1,700 of computer supplies on credit from liarris office Products. December 16 Sent a reminder to Comez Conpany to pay the fee for services recorded on Novenber 8. December 20 Completed a project for Liu Corporation and received $6,225cash. Decenber 2226 Took the week off for the bolldays. December 28 Received $3,000 cash from Gonez Company on its receivable. Decenber 29 Reimborsed 5 , Rey for business autonobile nileage (400 miles at $0.24 per mile). December 31 . Paid $1,000 cash for dividends. 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 $630 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 $110 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. f. Three of the four month's prepaid rent have expired. Required: 1. Prepare journal entries to record each of the December transactions. Post those entries to the accounts in the ledger. 2-a. Prepare adjusting entries to reflect a through f. 2-b. Post the joumal entries to rocord each of the December transactions, adjusting entries to the accounts in the ledger. 3. Prepare an adjusted trial balance as of December 31, 2021. 4. Prepare an income statement for the three months ended December 31,202% 5. Prepare a statement of retained earnings for the three months ended December 31,2021 6. Prepare a classified balance sheet as of December 31, 2021 . 7. Record the necessary closing entries as of December 31, 2021. 8. Prepare a post-closing trial balance as of December 31, 2021 Step by Step Solution
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