The December 31, 2017, adjusted trial balance of Business Solutions (reflecting
ID: 2567643 • Letter: T
Question
The December 31, 2017, adjusted trial balance of Business Solutions (reflecting its transactions from October through December of 2017) is found on the trial balance tab. Record the closing entries for Business Solutions. Prepare the company's income statement, balance sheet, and post-closing trial balance for the three months ended, or date of, December 31, 2017 General Ledger Trial Balancecorne St Owners Balance Sheet Post Closing Requirement General Equity Journal Statement You may view either the adjusted or post-closing trial balance by choosing from the drop-down box below. Your choice will determine the reported values on the financial statement tabs. Adjusted BUSINESS SOLUTIONS Trial Balance December 31, 2017 Account Title Debit Credit 48,372 5 668 580 1,665 825 8 000 Cash Accounts recelvable Computer supplies Prepaid insurance prepaid rent Office eoulomentExplanation / Answer
Answer:
STATEMENT OF CHANGES IN EQUITY
For Three Months ended December 31, 2017
Rey, Capital, October 1
0
Plus: Investments by Owner
73000
Net Income
14460
$87,460
Less: Withdrawal by Owner
7100
Rey, Capital, December 31
$80,360
Description
Debit $
Credit $
Revenues
31284
Income Summary
31284
(To close the revenue account to Income Summary)
Income Summary
16824
Depreciation Expense-Office Equipment
400
Depreciation expense-Computer
1250
Wages Expense
3875
Insurance Expense
555
Rent Expense
2475
Computer Supplies Expense
3065
Advertising Expense
2753
Mileage Expense
896
Miscellaneous Expense
250
Repairs Expense-Computer
1305
Income Summery
$14,460
To Retained earning
$14,460
(To close the income summary to retained earning)
__________________________________
INCOME STATEMENT
For Three Months ended in December 31, 2017
REVENUE
Computer Services Revenue
31284
Total Revenue
$31,284
EXPENSES
Depretiation Expense-Office Equipment
400
Depretiation expense-Computer
1250
Wages Expense
3875
Insurance Expense
555
Rent Expense
2475
Computer Supplies Expense
3065
Advertising Expense
2753
Mileage Expense
896
Miscellaneous Expense
250
Repairs Expense-Computer
1305
Total Expenses
$16,824
NET INCOME
$14,460
______________________________________________
BALANCE SHEET
31-Dec-17
ASSETS
Cash
48372
Accounts Receivable
5668
Computer Supplies
580
Prepaid Insurance
1665
Prepaid Rent
825
Office Equipment
8000
Less Accumulated Depreciation - Office Equipment
400
7600
Computer Equipment
20000
Less Accumulated Depreciation - Computer Equipment
1250
18750
TOTAL ASSETS
$83,460
LIABILITIES
Accounts Payable
1100
Wages Payable
500
Unearned Computer Services Revenue
1500
TOTAL LIABILITIES
3100
EQUITY
Ray, Capital
80360
TOTAL LIABILITIES AND EQUITY
$83,460
STATEMENT OF CHANGES IN EQUITY
For Three Months ended December 31, 2017
Rey, Capital, October 1
0
Plus: Investments by Owner
73000
Net Income
14460
$87,460
Less: Withdrawal by Owner
7100
Rey, Capital, December 31
$80,360
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