No.	Account Title	Debit			Credit
101	Cash	$	39,064
106	Accounts receivable		12,818
126	Computer supplies		2,645
128	Prepaid insurance		1,920
131	Prepaid rent		3,060
163	Office equipment		8,900
164	Accumulated depreciationOffice equipment				$	0
167	Computer equipment		21,600
168	Accumulated depreciationComputer equipment					0
201	Accounts payable					0
210	Wages payable					0
236	Unearned computer services revenue					0
307	Common stock					69,000
318	Retained earnings					0
319	Dividends		6,500
403	Computer services revenue					33,029
612	Depreciation expenseOffice equipment		0
613	Depreciation expenseComputer equipment		0
623	Wages expense		2,325
637	Insurance expense		0
640	Rent expense		0
652	Computer supplies expense		0
655	Advertising expense		1,638
676	Mileage expense		624
677	Miscellaneous expenses		210
684	Repairs expenseComputer		725
	Totals	$	102,029		$	102,029

Business Solutions had the following transactions and events in December 2017.

Dec.	2		Paid $950 cash to Hillside Mall for Business Solutions share of mall advertising costs.
	3		Paid $420 cash for minor repairs to the companys computer.
	4		Received $4,850 cash from Alexs 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 Alexs Engineering Co. that Business Solutions bid of $7,900 on a proposed project has been accepted. Alexs paid a $1,600 cash advance to Business Solutions.
	15		Purchased $2,000 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 $5,975 cash.
	2226		Took the week off for the holidays.
	28		Received $3,300 cash from Gomez Co. on its receivable.
	29		Reimbursed S. Rey for business automobile mileage (400 miles at $0.23 per mile).
	31		The company paid $1,300 cash in dividends.

Prepare an adjusted trial balance as of December 31, 2017.

BUSINESS SOLUTIONS Adjusted Trial Balance December 31, 2017 Account Title Debit Credit Cash 51,397 Accounts receivable 4,668 Computer supplies 670 Prepaid insurance 1,440 Prepaid rent 765 Office equipment 8,900 Accumulated depreciationOffice equipment 445 Computer equipment 21,600 Accumulated depreciationComputer equipment 1,350 Accounts payable 2,000 Wages payable 420 Unearned computer services revenue 1,600 Common stock 69,000 Retained earnings Dividends 7,800 Computer services revenue 39,004 Depreciation expenseOffice equipment 445 Depreciation expenseComputer equipment 1,350 Wages expense 3,375 Insurance expense 480 Rent expense 2,295 Computer supplies expense 3,975 Advertising expense 2,588 Mileage expense 716 Miscellaneous expenses 210 Repairs expenseComputer 1,145 Totals $113,819 $113,819

Prepare an income statement for the three months ended December 31, 2017.

BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2017 Revenue Computer services revenue $39,004 Expenses Depreciation expenseOffice equipment $445 Depreciation expenseComputer equipment 1,350 Wages expense 3,375 Insurance expense 480 Rent expense 2,295 Computer supplies expense 3,975 Advertising expense 2,588 Mileage expense 716 Miscellaneous expenses 210 Repairs expenseComputer 1,145 Total expenses 16,579 Net income $22,425

Solve: Statement of Retained Earnings

Prepare a statement of retained earnings for the three months ended December 31, 2017.

	BUSINESS SOLUTIONS Statement of Retained Earnings For Three Months Ended December 31, 2017 Retained earnings, October 1, 2017 0 Retained earnings, December 31, 2017 $0