The December 31, 2021, adjusted trial balance of Business Solutions (reflecting its transactions from October through...

Transcribed Image Text:

The December 31, 2021, adjusted trial balance of Business Solutions (reflecting its transactions from October through December of 2021) follows. Number 101 196 Account Title Cash Accounts receivable Debit $ 52,201 Credit 5,268 126 Computer supplies 640 128 Prepaid insurance 1,395 131 Prepaid rent 1770 163 Office equipment 8,700 164 Accumulated depreciation-office equipment $ 435 167 Computer equipment 20,000 168 Accumulated depreciation-Computer equipment 1,250 201 Accounts payable 1,500 210 Wages payable 400 236 Unearned computer services revenue 2,500 301 S. Rey, Capital 72,000 302 S. Rey, Withdrawals 7,600 403 Computer services revenue 34,539 612 Depreciation expense-Office equipment 435 613 Depreciation expense-Computer equipment 1,250 623 Wages expense 3,450 637 Insurance expense 465 640 Rent expense 2.310 652 Computer supplies expense 3,405 655 Advertising expense 2,608 676 Mileage expense 722 677 Miscellaneous expenses 210 684 Repairs expense-Computer 1.195 901 Income summary Totals $ 112,624 $ 112,624 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 $72,000 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. The December 31, 2021, adjusted trial balance of Business Solutions (reflecting its transactions from October through December of 2021) follows. Number 101 196 Account Title Cash Accounts receivable Debit $ 52,201 Credit 5,268 126 Computer supplies 640 128 Prepaid insurance 1,395 131 Prepaid rent 1770 163 Office equipment 8,700 164 Accumulated depreciation-office equipment $ 435 167 Computer equipment 20,000 168 Accumulated depreciation-Computer equipment 1,250 201 Accounts payable 1,500 210 Wages payable 400 236 Unearned computer services revenue 2,500 301 S. Rey, Capital 72,000 302 S. Rey, Withdrawals 7,600 403 Computer services revenue 34,539 612 Depreciation expense-Office equipment 435 613 Depreciation expense-Computer equipment 1,250 623 Wages expense 3,450 637 Insurance expense 465 640 Rent expense 2.310 652 Computer supplies expense 3,405 655 Advertising expense 2,608 676 Mileage expense 722 677 Miscellaneous expenses 210 684 Repairs expense-Computer 1.195 901 Income summary Totals $ 112,624 $ 112,624 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 $72,000 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.

Answer rating: 100% (QA)

To complete the requested financial statements and records for Business Solutions lets start by organizing the data from the adjusted trial balance you described Unfortunately the data provided appear... View the full answer