No.	Account Title	Debit			Credit
101	Cash	$	39,064
106	Accounts receivable		12,818
126	Computer supplies		2,645
128	Prepaid insurance		1,920
131	Prepaid rent		3,060
163	Office equipment		8,900
164	Accumulated depreciationOffice equipment				$	0
167	Computer equipment		21,600
168	Accumulated depreciationComputer equipment					0
201	Accounts payable					0
210	Wages payable					0
236	Unearned computer services revenue					0
307	Common stock					69,000
318	Retained earnings					0
319	Dividends		6,500
403	Computer services revenue					33,029
612	Depreciation expenseOffice equipment		0
613	Depreciation expenseComputer equipment		0
623	Wages expense		2,325
637	Insurance expense		0
640	Rent expense		0
652	Computer supplies expense		0
655	Advertising expense		1,638
676	Mileage expense		624
677	Miscellaneous expenses		210
684	Repairs expenseComputer		725
	Totals	$	102,029		$	102,029

Business Solutions had the following transactions and events in December 2017.

Dec.	2		Paid $950 cash to Hillside Mall for Business Solutions share of mall advertising costs.
	3		Paid $420 cash for minor repairs to the companys computer.
	4		Received $4,850 cash from Alexs Engineering Co. for the receivable from November.
	10		Paid cash to Lyn Addie for six days of work at the rate of $105 per day.
	14		Notified by Alexs Engineering Co. that Business Solutions bid of $7,900 on a proposed project has been accepted. Alexs paid a $1,600 cash advance to Business Solutions.
	15		Purchased $2,000 of computer supplies on credit from Harris Office Products.
	16		Sent a reminder to Gomez Co. to pay the fee for services recorded on November 8.
	20		Completed a project for Liu Corporation and received $5,975 cash.
	2226		Took the week off for the holidays.
	28		Received $3,300 cash from Gomez Co. on its receivable.
	29		Reimbursed S. Rey for business automobile mileage (400 miles at $0.23 per mile).
	31		The company paid $1,300 cash in dividends.

Prepare an adjusted trial balance as of December 31, 2017.

BUSINESS SOLUTIONS
Adjusted Trial Balance
December 31, 2017
Account Title	Debit	Credit
Cash	51,397
Accounts receivable	4,668
Computer supplies	670
Prepaid insurance	1,440
Prepaid rent	765
Office equipment	8,900
Accumulated depreciationOffice equipment		445
Computer equipment	21,600
Accumulated depreciationComputer equipment		1,350
Accounts payable		2,000
Wages payable		420
Unearned computer services revenue		1,600
Common stock		69,000
Retained earnings
Dividends	7,800
Computer services revenue		39,004
Depreciation expenseOffice equipment	445
Depreciation expenseComputer equipment	1,350
Wages expense	3,375
Insurance expense	480
Rent expense	2,295
Computer supplies expense	3,975
Advertising expense	2,588
Mileage expense	716
Miscellaneous expenses	210
Repairs expenseComputer	1,145
Totals	$113,819	$113,819

Prepare an income statement for the three months ended December 31, 2017.

BUSINESS SOLUTIONS
Income Statement
For Three Months Ended December 31, 2017
Revenue
Computer services revenue		$39,004
Expenses
Depreciation expenseOffice equipment	$445
Depreciation expenseComputer equipment	1,350
Wages expense	3,375
Insurance expense	480
Rent expense	2,295
Computer supplies expense	3,975
Advertising expense	2,588
Mileage expense	716
Miscellaneous expenses	210
Repairs expenseComputer	1,145
Total expenses		16,579
Net income		$22,425

Solve: Statement of Retained Earnings

Prepare a statement of retained earnings for the three months ended December 31, 2017.

BUSINESS SOLUTIONS
Statement of Retained Earnings
For Three Months Ended December 31, 2017
Retained earnings, October 1, 2017
	0
Retained earnings, December 31, 2017	$0