Lab 1 1 25 points eBook Print References Number 101 106 126 128 131 163 164 167 168 201 210 236 307 318 319 403 612 613 623 SP 3 Serial Problem Business Solutions (Algo) LO P1, P2, P3, P4, P5 After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30, 2021, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2021) follows. Account Title 640 652 655 676 677 684 901 Cash Accounts receivable Computer supplies Prepaid insurance Prepaid rent Office equipment Saved Accumulated depreciation-office equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable. Wages payable. Unearned computer services revenue Common stock Retained earnings Dividends Computer services revenue Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer Income summary Totals Help Save & Exit Submit Debit $ 38,764 12,718 2,545 2,220 3,160 8,800 22,800 6,300 0 e 2,125 0 0 1,698 684 220 715 Check my work $ 102,749 Credit 72,000 30,749 $ 102,749 Saved Help Save & Exit Submit Check my work Business Solutions had the following transactions and events in December 2021. December 2 Paid $1,015 cash to Hillside Hall for Business Solutions's share of mall advertising. costs. December 3 Paid $490 cash for einor repairs to the company's computer. December 4 Received $4,750 cash from Alex's Engineering Company for the receivable from November. December 10 Paid cash to Lyn Addie for six days of work at the rate of $100 per day. December 14 Notified by Alex's Engineering Company that Business Solutions's bid of $7,800 on a proposed project has been accepted. Alex's paid a $1,900 cash advance to Business. Solutions. December 15 Purchased $1,900 of computer supplies on credit from Harris Office Products. December 16 Sent a reminder to Gomez Company to pay the fee for services recorded on November 8. December 20 Completed a project for Liu Corporation and received $5,775 cash. December 22-26 Took the week off for the holidays. December 28 Received $3,800 cash from Gomez Company on its receivable. December 29 Reimbursed S. Rey for business automobile mileage (600 miles at $0.32 per nile). December 31 Paid $1,000 cash for 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 $100 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 have expired Required 1 Required 2A Required 28 Required 3 Required 4 Required 5 Required 6 Required 7 Required Prepare a statement of retained earnings for the three months ended December 31, 2021. BUSINESS SOLUTIONS Statement of Retained Earnings For Three Months Ended December 31, 2021 $ Retained earnings, October 1, 2021 Add: Net income Less: Dividends Retained earnings, December 31, 2021 $ 0 11,028 11,028 11,028 < Required 4 Required 6 >
