Question
SP 4 Serial Problem (Algo) Business Solutions LO P2 The December 31, 2021, adjusted trial balance of Business Solutions (reflecting its transactions from October through
SP 4 Serial Problem (Algo) Business Solutions LO P2 The December 31, 2021, adjusted trial balance of Business Solutions (reflecting its transactions from October through December of 2021) follows. Number Account Title Debit Credit 101 Cash $ 50,008 106 Accounts receivable 5,568 126 Computer supplies 680 128 Prepaid insurance 1,575 131 Prepaid rent 750 163 Office equipment 8,300 164 Accumulated depreciationOffice equipment $ 415 167 Computer equipment 21,600 168 Accumulated depreciationComputer equipment 1,350 201 Accounts payable 2,000 210 Wages payable 460 236 Unearned computer services revenue 1,700 301 S. Rey, Capital 65,000 302 S. Rey, Withdrawals 7,100 403 Computer services revenue 41,584 612 Depreciation expenseOffice equipment 415 613 Depreciation expenseComputer equipment 1,350 623 Wages expense 3,525 637 Insurance expense 525 640 Rent expense 2,250 652 Computer supplies expense 3,965 655 Advertising expense 2,623 676 Mileage expense 850 677 Miscellaneous expenses 230 684 Repairs expenseComputer 1,195 901 Income summary 0 Totals $ 112,509 $ 112,509
Required: Prepare an income statement for the three months ended December 31, 2021.
Prepare a statement of owner's equity for the three months ended December 31, 2021. Hint: The S. Rey, Capital account balance was $0 on October 1, and owner investments were $65,000 this period.
Prepare a classified balance sheet as of December 31, 2021.
Record the closing entries as of December 31, 2021.
Prepare a post-closing trial balance as of December 31, 2021.
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