Question

I need a general journal (closing entries) and a ledger please SP 4 The December 31, 2021, adjusted trial balance of Business Solutions (reflecting its transactions from October through December of 2021) follows. No. Account Title 101 Cash 106 Accounts receivable 126 Computer supplies 128 Prepaid insurance 131 Prepaid rent Debit $ 48,372 5,668 580 1,665 825 8,000 Credit 163 Office equipment 164 Accumulated depreciation-Office equipment 167 Computer equipment 168 Accumulated depreciationComputer equipment 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue 301 S. Rey, Capital 302 S. Rey, Withdrawals 403 Computer services revenue 612 Depreciation expense-Office equipment 613 Depreciation expenseComputer equipment 623 Wages expense 637 Insurance expense 640 Rent expense 652 Computer supplies expense 655 Advertising expense 676 Mileage expense 677 Miscellaneous expenses 684 Repairs expenseComputer 901 Income summary Totals $400 20,000 1,250 1,100 500 1,500 73,000 7,100 31,284 400 1,250 3,875 555 2,475 3,065 2,753 896 250 1,305 0 $109,034 $109,034 Page 160 Required 1.Prepare an income statement for the three months ended December 31, 2021. 2. Prepare a statement of owners equity for the three months ended December 31, 2021. Hint: The S. Rey, Capital account balance was $0 on October 1, and owner investments were $73,000 this period 3. Prepare a classified balance sheet as of December 31, 2021. 4. Record and post the necessary closing entries as of December 31, 2021. 5. Prepare a post-closing trial balance as of December 31, 2021 Check (5) Post-closing trial balance totals, $85,110

Answer 1

The firm's accounting profit is calculated by subtracting its total expenses from its sales revenue. For a firm with $1 million in sales revenue and $950,000 in total expenses, the accounting profit would be $50,000.

Step-by-step explanation:

To calculate the firm's accounting profit, we must subtract the total expenses from the sales revenue. The expenses include labor, capital, and materials costs.

Here's the calculation:

• Sales revenue: $1,000,000
• Labor costs: $600,000
• Capital costs: $150,000
• Materials costs: $200,000
• Total costs (Labor + Capital + Materials): $950,000
• Accounting Profit (Sales Revenue - Total Costs): $1,000,000 - $950,000 = $50,000

The firm's accounting profit is $50,000.