Question

After the success of the company’s first two months, Santana Rey continues to operate Business Solutions. The November 30, 2015, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2015) follows.

No.	Account Title	Debit			Credit
101	Cash	$	38,864
106	Accounts receivable		12,818
126	Computer supplies		2,545
128	Prepaid insurance		2,040
131	Prepaid rent		3,180
163	Office equipment		8,900
164	Accumulated depreciation—Office equipment				$	0
167	Computer equipment		23,200
168	Accumulated depreciation—Computer equipment					0
201	Accounts payable					0
210	Wages payable					0
236	Unearned computer services revenue					0
307	Common stock					67,000
318	Retained earnings					0
319	Dividends		5,900
403	Computer services revenue					36,279
612	Depreciation expense—Office equipment		0
613	Depreciation expense—Computer equipment		0
623	Wages expense		2,475
637	Insurance expense		0
640	Rent expense		0
652	Computer supplies expense		0
655	Advertising expense		1,688
676	Mileage expense		644
677	Miscellaneous expenses		240
684	Repairs expense—Computer		785
	Totals	$	103,279		$	103,279

Question: Already have adjusting entries, just need help with Adjusted Trial Balance, Income Statement, Retained Earnings, Balance Sheet, and Post Closing Trial Balance.

Business Solutions had the following transactions and events in December 2015.

Dec.	2	Paid $975 cash to Hillside Mall for Business Solutions’ share of mall advertising costs.
	3	Paid $480 cash for minor repairs to the company’s computer.
	4	Received $4,650 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 $110 per day.
	14	Notified by Alex’s Engineering Co. that Business Solutions’ bid of $8,000 on a proposed    project has been accepted. Alex’s paid a $1,800 cash advance to Business Solutions.
	15	Purchased $1,200 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 $6,575 cash.
	22–26	Took the week off for the holidays.
	28	Received $3,100 cash from Gomez Co. on its receivable.
	29	Reimbursed S. Rey for business automobile mileage (500 miles at $0.32 per mile).
	31	The company paid $1,400 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:

a.	The December 31 inventory count of computer supplies shows $600 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 $110 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.

Answer 1

Answer 3.
Business Solution
Adjusted Trial Balance
Dec 31, 2015
Accounts Title	Debits	Credits
Cash	51,314.00
Accounts Receivable	5,068.00
Computer Supplies	600.00
Prepaid Insurance	1,530.00
Prepaid Rent	795.00
Office Equipment	8,900.00
Accumulated Dep.- Equipment		445.00
Computer Equipment	23,200.00
Accumulated Dep.- Computer Equipment		1,450.00
Accounts Payable		1,200.00
Wages Payable		440.00
Unearned Computer Service Revenue		1,800.00
Common Stock		67,000.00
Dividends	7,300.00
Computer Service Revenue		42,854.00
Dep. Exp. - Office Equipment	445.00
Dep. Exp. - Computer Equipment	1,450.00
Wages Expense	3,575.00
Insurance Expense	510.00
Rent Expense	2,385.00
Computer Supplies Expense	3,145.00
Advertising Expense	2,663.00
Mileage Expense	804.00
Misc. Expense	240.00
Repair Expense - Computer	1,265.00
Total	115,189.00	115,189.00
		-
Answer 4.
Business Solution
Income Statement
For Three Months Ended Dec 31, 2015
Revenues:
Computer Service Revenue		42,854.00
Expenses
Dep. Exp. - Office Equipment	445.00
Dep. Exp. - Computer Equipment	1,450.00
Wages Expense	3,575.00
Insurance Expense	510.00
Rent Expense	2,385.00
Computer Supplies Expense	3,145.00
Advertising Expense	2,663.00
Mileage Expense	804.00
Misc. Expense	240.00
Repair Expense - Computer	1,265.00
Total Expenses		16,482.00
Net Income (Loss)		26,372.00
Answer 5.
Business Solution
Statement of Retained Earnings
For Three Months Ended Dec 31, 2015
Beginning Balance	-
Net Income (Loss)	26,372.00
Sub-total	26,372.00
Dividends	(7,300.00)
Ending Balance - Dec 31, 2016	19,072.00
Answer 6.
Business Solution
Balance Sheet
Dec 31, 2017
Assets
Current Assets
Cash		51,314.00
Accounts Receivable		5,068.00
Computer Supplies		600.00
Prepaid Insurance		1,530.00
Prepaid Rent		795.00
Total Current Assets			59,307.00
Property, Plant & Equipment
Office Equipment	8,900.00
Accumulated Dep.- Equipment	(445.00)	8,455.00
Computer Equipment	23,200.00
Accumulated Dep.- Computer Equipment	(1,450.00)	21,750.00
Total Property, Plant & Equipment			30,205.00
Total Assets			89,512.00
Liabilities & Owners' Equity
Liabilities
Current Liabilities
Accounts Payable		1,200.00
Wages Payable		440.00
Unearned Computer Service Revenue		1,800.00
Total Current Liabilities			3,440.00
Long-Term Liabilities			-
Total Liabilities			3,440.00
Total StockHolders' Equity
Common Stock		67,000.00
Retained Earnings		19,072.00
Total Stockholders' Equity			86,072.00
Total Liabilities & Stockholders' Equity			89,512.00
			-
Answer 8.
Business Solution
Closing Trial Balance
Dec 31, 2016
Accounts Title	Debits	Credits
Cash	51,314.00
Accounts Receivable	5,068.00
Computer Supplies	600.00
Prepaid Insurance	1,530.00
Prepaid Rent	795.00
Office Equipment	8,900.00
Accumulated Dep.- Equipment		445.00
Computer Equipment	23,200.00
Accumulated Dep.- Computer Equipment		1,450.00
Accounts Payable		1,200.00
Wages Payable		440.00
Unearned Computer Service Revenue		1,800.00
Common Stock		67,000.00
Retained Earnings		19,072.00
Total	91,407.00	91,407.00