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Use the below adjusted trail balance to prepare the 3 basicfinancial statements on the forms provided. Also, use the NetIncome you get to calculate EPS (Earnings Per Share) assuming theweighted average shares are 550,000 and there are no PreferredDividends.

Debit Credit
Cash $558,160
Accounts Receivable 5,668
Computer Supplies 580
Prepaid Insurance 1,665
Prepaid Rent 825
Office Equipment 8,000
Accumulated Depreciation-Office Equipment $400
Computer Equipment 30,000
Accumulated Depreciation-Computer Equipment 1,250
Accounts Payable 1,100
Wages Payable 500
Unearned Computer ServicesRevenue 1,500
Common Stock 83,000
Retained Earnings 10,000
Dividends 7,100
Computer Services Revenue 31,284
Depreciation Expense- OfficeEquipment 400
Depreciation Expense -Computer Equipment 1,250
Wages Expense 3,875
Insurance Expense 555
Rent Expense 2,475
Computer Supplies Expense 3,065
Advertising Expense 2,965
Mileage Expense 896
Miscellaneous Expenses 250
Repairs Expense -Computer 1,305
Totals $129,034 $129,034

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Nelly Stracke
Nelly StrackeLv2
28 Sep 2019

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The December 31, 2015, adjusted trial balance of BusinessSolutions (reflecting its transactions from October throughDecember of 2015) follows.

No.

Account Title

Debit

Credit

101

Cash

$ 48,372

106

Accounts receivable

5,668

126

Accounts receivable

580

128

Computer supplies

1,665

131

Prepaid insurance

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

Please complete the following:

Record and post the necessary closing entries for BusinessSolutions.

Prepare a post-closing trial balance as of December 31,2015.

After the success of the company’s first two months, Santana Rey continues to operate Business Solutions. The November 30, 2019, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2019) follows. No. Account Title Debit Credit 101 Cash $ 38,264 106 Accounts receivable 12,618 126 Computer supplies 2,545 128 Prepaid insurance 2,220 131 Prepaid rent 3,300 163 Office equipment 8,000 164 Accumulated depreciation—Office equipment $ 0 167 Computer equipment 20,000 168 Accumulated depreciation—Computer equipment 0 201 Accounts payable 0 210 Wages payable 0 236 Unearned computer services revenue 0 307 Common stock 73,000 318 Retained earnings 0 319 Dividends 5,600 403 Computer services revenue 25,659 612 Depreciation expense—Office equipment 0 613 Depreciation expense—Computer equipment 0 623 Wages expense 2,625 637 Insurance expense 0 640 Rent expense 0 652 Computer supplies expense 0 655 Advertising expense 1,728 676 Mileage expense 704 677 Miscellaneous expenses 250 684 Repairs expense—Computer 805 Totals $ 98,659 $ 98,659 Business Solutions had the following transactions and events in December 2019. Dec. 2 Paid $1,025 cash to Hillside Mall for Business Solutions’ share of mall advertising costs. 3 Paid $500 cash for minor repairs to the company’s computer. 4 Received $3,950 cash from Alex’s Engineering Co. for the receivable from November. 10 Paid cash to Lyn Addie for six days of work at the rate of $125 per day. 14 Notified by Alex’s Engineering Co. that Business Solutions’ bid of $7,000 on a proposed project has been accepted. Alex’s paid a $1,500 cash advance to Business Solutions. 15 Purchased $1,100 of computer supplies on credit from Harris Office Products. 16 Sent a reminder to Gomez Co. to pay the fee for services recorded on November 8. 20 Completed a project for Liu Corporation and received $5,625 cash. 22–26 Took the week off for the holidays. 28 Received $3,000 cash from Gomez Co. on its receivable. 29 Reimbursed S. Rey for business automobile mileage (600 miles at $0.32 per mile). 31 The company paid $1,500 cash in dividends. The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company’s first three months. The December 31 inventory count of computer supplies shows $580 still available. Three months have expired since the 12-month insurance premium was paid in advance. As of December 31, Lyn Addie has not been paid for four days of work at $125 per day. The computer system, acquired on October 1, is expected to have a four-year life with no salvage value. The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value. Three of the four months' prepaid rent have expired. Required: 1. Prepare journal entries to record each of the December transactions and events for Business Solutions. 2-a. Prepare adjusting entries to reflect a through f. 2-b. Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger. 3. Prepare an adjusted trial balance as of December 31, 2019. 4. Prepare an income statement for the three months ended December 31, 2019. 5. Prepare a statement of retained earnings for the three months ended December 31, 2019. 6. Prepare a balance sheet as of December 31, 2019. 7. Record and post the necessary closing entries as of December 31, 2019. 8. Prepare a post-closing trial balance as of December 31, 2019.

 

After the success of the company’s first two months, Santana Rey continues to operate Business Solutions. The November 30, 2017, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2017) follows. No. Account Title Debit Credit 101 Cash $ 38,364 106 Accounts receivable 13,218 126 Computer supplies 2,645 128 Prepaid insurance 2,100 131 Prepaid rent 3,220 163 Office equipment 8,100 164 Accumulated depreciation—Office equipment $ 0 167 Computer equipment 22,400 168 Accumulated depreciation—Computer equipment 0 201 Accounts payable 0 210 Wages payable 0 236 Unearned computer services revenue 0 301 S. Rey, Capital 71,000 302 S. Rey, Withdrawals 6,000 403 Computer services revenue 30,744 612 Depreciation expense—Office equipment 0 613 Depreciation expense—Computer equipment 0 623 Wages expense 2,450 637 Insurance expense 0 640 Rent expense 0 652 Computer supplies expense 0 655 Advertising expense 1,678 676 Mileage expense 634 677 Miscellaneous expenses 150 684 Repairs expense—Computer 785 Totals $ 101,744 $ 101,744 Business Solutions had the following transactions and events in December 2017. Dec. 2 Paid $1,015 cash to Hillside Mall for Business Solutions’ share of mall advertising costs. 3 Paid $420 cash for minor repairs to the company’s computer. 4 Received $4,450 cash from Alex’s Engineering Co. for the receivable from November. 10 Paid cash to Lyn Addie for six days of work at the rate of $105 per day. 14 Notified by Alex’s Engineering Co. that Business Solutions’ bid of $7,300 on a proposed project has been accepted. Alex’s paid a $1,600 cash advance to Business Solutions. 15 Purchased $1,600 of computer supplies on credit from Harris Office Products. 16 Sent a reminder to Gomez Co. to pay the fee for services recorded on November 8. 20 Completed a project for Liu Corporation and received $6,425 cash. 22–26 Took the week off for the holidays. 28 Received $3,600 cash from Gomez Co. on its receivable. 29 Reimbursed S. Rey for business automobile mileage (500 miles at $0.29 per mile). 31 S. Rey withdrew $1,300 cash from the company for personal use. The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company’s first three months: a.The December 31 inventory count of computer supplies shows $660 still available. b.Three months have expired since the 12-month insurance premium was paid in advance. c.As of December 31, Lyn Addie has not been paid for four days of work at $105 per day. d.The computer system, acquired on October 1, is expected to have a four-year life with no salvage value. e.The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value. f.Three of the four months' prepaid rent has expired. Required: 1. Prepare journal entries to record each of the December transactions and events for Business Solutions. 2-a. Prepare adjusting entries to reflect a through f. 2-b. Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger. 3. Prepare an adjusted trial balance as of December 31, 2017. 4. Prepare an income statement for the three months ended December 31, 2017. 5. Prepare a statement of owner’s equity for the three months ended December 31, 2017. 6. Prepare a balance sheet as of December 31, 2017.

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