The December 31, 2021, adjusted trial balance of Business Solutions (reflecting its transactions from October through December of 2021) follows. credit is in parenthesis to differentiate only () 101 Cash $ 48,372 106 Accounts receivable 5,668 126 Computer supplies 580 128 Prepaid insurance 1,665 131 Prepaid rent 825 163 Office equipment 8,000 164 Accumulated depreciation—Office equipment ($ 400) 167 Computer equipment 20,000 168 Accumulated depreciation—Computer equipment (1,250) 201 Accounts payable (1,100) 210 Wages payable (500) 236 Unearned computer services revenue (1,500) 301 S. Rey, Capital (73,000) 302 S. Rey, Withdrawals 7,100 403 Computer services revenue (31,284) 612 Depreciation expense—Office equipment 400 613 Depreciation expense—Computer equipment 1,250 623 Wages expense 3,875 637 Insurance expense 555 640 Rent expense 2,475 652 Computer supplies expense 3,065 655 Advertising expense 2,753 676 Mileage expense 896 677 Miscellaneous expenses 250 684 Repairs expense—Computer 1,305 901 Income summary (0) Totals $109,034 ($109,034) 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 and post the necessary closing entries as of December 31, 2021. 5. Prepare a post-closing trial balance as of December 31, 2021.
The December 31, 2021, adjusted
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Net income: The difference among the Revenues and expenses is considered as the net income of the company.
Balance sheet: The sheet prepared to record the current and non current assets and liabilities of the company.
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