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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

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.

The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the companys first three months:

  1. The December 31 inventory count of computer supplies shows $670 still available.
  2. Three months have expired since the 12-month insurance premium was paid in advance.
  3. As of December 31, Lyn Addie has not been paid for four days of work at $105 per day.
  4. The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.
  5. The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.
  6. Three of the four months' prepaid rent has expired

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

BUSINESS SOLUTIONS
Income Statement
For Three Months Ended December 31, 2017
Revenue
Expenses
Total expenses 0

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