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	$ 51,900
106	Accounts receivable	4,868
126	Computer supplies	670
128	Prepaid insurance	1,575
131	Prepaid rent	810
163	Office equipment	8,500
164	Accumulated depreciationOffice equipment		$ 425
167	Computer equipment	20,800
168	Accumulated depreciationComputer equipment		1,300
201	Accounts payable		1,600
210	Wages payable		440
236	Unearned computer services revenue		2,100
301	S. Rey, Capital		68,000
302	S. Rey, Withdrawals	7,200
403	Computer services revenue		38,969
612	Depreciation expenseOffice equipment	425
613	Depreciation expenseComputer equipment	1,300
623	Wages expense	3,300
637	Insurance expense	525
640	Rent expense	2,430
652	Computer supplies expense	3,575
655	Advertising expense	2,653
676	Mileage expense	808
677	Miscellaneous expenses	230
684	Repairs expenseComputer	1,265
901	Income summary		0
	Totals	$ 112,834	$ 112,834

Required: 1. Prepare an income statement for the three months ended December 31, 2021. 2. 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 $68,000 this period. 3. Prepare a classified balance sheet as of December 31, 2021. 4. Record the closing entries as of December 31, 2021. 5. Prepare a post-closing trial balance as of December 31, 2021.