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.
Business Solutions had the following transactions and events in December 2021.
December 2 Paid $1,025 cash to Hillside Mall for Business Solutions's share of mall advertising costs.
December 3 Paid $500 cash for minor repairs to the company's computer.
December 4 Received $3,950 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 $125 per day.
December 14 Notified by Alex's Engineering Company that Business Solutions's bid of $7,000 on a proposed project has been
accepted. Alex's paid a $1,500 cash advance to Business Solutions.
December 15 Purchased $1,100 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 $5,625 cash.
December 22-26 Took the week off for the holidays.
December 28 Received $3,000 cash from Gomez Company on its receivable.
December 29 Reimbursed S. Rey for business automobile mileage ( 600 miles at $0.32 per mile).
December 31 Paid $1,500 cash for dividends.
Required:
5.Prepare a statement of retained earnings for the three months ended December 31, 2021
After the success of the company's first two months,Santana Rey continues to operate Business Solutions.The November 3o,2o21 unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2o21) follows
Number 101 106 126 128 131 163 164 167 168 201 210 236 307 318 319 403 612 613 623 637 640 652 655 676 677 684 901
Account Title
Debit $ 38,264 12,618 2,545 2,220 3,300 8,000
Credit
Cash Accounts receivable Computer supplies Prepaid insurance Prepaid rent Office equipment 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
$0
20,000
73,000
5,600
25,659
. 2,625
1,728 704 250 805
9 $98,659
$ 98,659
Business Solutions had the followina transactions and events in December 2o21
December 2 Paid $i,025 cash to Hillside Mall for Business Solutions's share of mall advertising costs
December 4 Received $3,95o cash from Alex's Engineering Company for the receivable from November.
December 14 Notified by Alex's Engineering Company that Business Solutions's bid of $7,000 on a proposed project has been accepted. Alex's paid a $1,500 cash advance to Business Solutions. December 15 Purchased $i,lo0 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 22-26 Took the week off for the holidays. December 28 Received $3,000 cash from Gomez Company on its receivable. December 29 Reimbursed S. Rey for business automobile mileage (600 miles at $0.32 per mile). December 31 Paid $1,500 cash for dividends.
