Question
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
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 | $ 51,104 | |
106 | Accounts receivable | 5,668 | |
126 | Computer supplies | 620 | |
128 | Prepaid insurance | 1,620 | |
131 | Prepaid rent | 735 | |
163 | Office equipment | 8,300 | |
164 | Accumulated depreciationOffice equipment | $ 415 | |
167 | Computer equipment | 22,800 | |
168 | Accumulated depreciationComputer equipment | 1,425 | |
201 | Accounts payable | 2,000 | |
210 | Wages payable | 460 | |
236 | Unearned computer services revenue | 2,200 | |
301 | S. Rey, Capital | 73,000 | |
302 | S. Rey, Withdrawals | 7,200 | |
403 | Computer services revenue | 35,389 | |
612 | Depreciation expenseOffice equipment | 415 | |
613 | Depreciation expenseComputer equipment | 1,425 | |
623 | Wages expense | 3,450 | |
637 | Insurance expense | 540 | |
640 | Rent expense | 2,205 | |
652 | Computer supplies expense | 4,025 | |
655 | Advertising expense | 2,573 | |
676 | Mileage expense | 814 | |
677 | Miscellaneous expenses | 220 | |
684 | Repairs expenseComputer | 1,175 | |
901 | Income summary | 0 | |
Totals | $ 114,889 | $ 114,889 |
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 $73,000 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.
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