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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question
The December 31, 2021, adjusted trial balance of Business Solutions (reflecting its transactions from October through December of
2021) follows.
Number
101 Cash
106 Accounts receivable
126
Computer supplies
128
Prepaid insurance
131 Prepaid rent
163 Office equipment
164
Account Title
167
168 Accumulated depreciation-Computer equipment
201
640
652
655
676
677
Accumulated depreciation-office equipment
Computer equipment
Accounts payable
210
Wages payable
236
Unearned computer services revenue
301
S. Rey, Capital
302
S. Rey, Withdrawals
403
Computer services revenue
612 Depreciation expense-Office equipment
Depreciation expense-Computer equipment
Wages expense
613
623
637
Insurance expense
684
901
Rent expense
Computer supplies expense
Advertising expense
Mileage expense
Miscellaneous expenses
Repairs expense-Computer
Income summary
Totals.
Debit
$ 48,372
5,668
580
1,665
825
8,000
20,000
7,100
400
1,250
3,875
555
2,475
3,065
2,753
896
250
1,305
Credit
$ 400
1,250
1,100
500
1,500
73,000
31,284
0
$ 109,034 $ 109,034
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.
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 Cash 106 Accounts receivable 126 Computer supplies 128 Prepaid insurance 131 Prepaid rent 163 Office equipment 164 Account Title 167 168 Accumulated depreciation-Computer equipment 201 640 652 655 676 677 Accumulated depreciation-office equipment Computer equipment Accounts payable 210 Wages payable 236 Unearned computer services revenue 301 S. Rey, Capital 302 S. Rey, Withdrawals 403 Computer services revenue 612 Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense 613 623 637 Insurance expense 684 901 Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer Income summary Totals. Debit $ 48,372 5,668 580 1,665 825 8,000 20,000 7,100 400 1,250 3,875 555 2,475 3,065 2,753 896 250 1,305 Credit $ 400 1,250 1,100 500 1,500 73,000 31,284 0 $ 109,034 $ 109,034 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.
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.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
Required 4
Required 5
Prepare an income statement for the three months ended December 31, 2021.
Revenue
BUSINESS SOLUTIONS
Income Statement
For Three Months Ended December 31, 2021
Expenses
Transcribed Image Text: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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Prepare an income statement for the three months ended December 31, 2021. Revenue BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2021 Expenses
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 7 steps with 2 images

Blurred answer
Knowledge Booster
Financial Statements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education