1. Prepare an income statement for the month ended December 31.
2. Prepare a statement of owner's equity for the month ended December 31. (Note: The company just began operations on January 1)
3. Prepare a balance sheet as of December 31.
4. Record and post the necessary closing entries for Business Solutions. Then prepare 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?

Account Title Debit Credit Cash ... $ 8,000 17,500 3,000 172,000 $ 36,000 85,000 Accounts receivable Office supplies . . . . . . Trucks Accumulated depreciation-Trucks ......... Land .......... Accounts payable ....................... Interest payable ......................... Long-term notes payable ................. K. Wilson, Capital ....................... K. Wilson, Withdrawals .................. Trucking fees earned ..................... Depreciation expenseTrucks ............ Salaries expense ...... Office supplies expense ......... Repairs expense-Trucks. Totals ........... 12,000 4,000 53,000 175,000 20,000 130,000 23,500 61,000 8,000 12,000 $410,000 $410,000