166
Online Solutions
Adjusted Trial Balance
December 31, 2007Debit Credit
Balances Balances
Cash 2,065
Accounts Receivable 2,720
Supplies 760
Prepaid Insurance 2,300
Office Equipment 1,800
Accumulated Depreciation 50
Land 20,000
Accounts Payable 900
Wages Payable 250
Unearned Rent 240
Capital Stock 25,000
Dividends 4,000
Fees Earned 16,840
Rent Revenue 120
Wages Expense 4,525
Supplies Expense 2,040
Rent Expense 1,600
Utilities Expense 985
Insurance Expense 100
Depreciation Expense 50
Miscellaneous Expense 455
43,400 43,400Exhibit 11
Adjusted Trial Balance
for Online SolutionsOnline Solutions
Income Statement
For the Two Months Ended December 31, 2007Fees earned $16,840
Operating expenses:
Wages expense $4,525
Supplies expense 2,040
Rent expense 1,600
Utilities expense 985
Insurance expense 100
Depreciation expense 50
Miscellaneous expense 455
Total operating expenses 9,755
Operating income $ 7,085
Other income 120
Net income $ 7,205Exhibit 12
Financial Statements
for Online SolutionsOnline Solutions
Retained Earnings Statement
For the Two Months Ended December 31, 2007Net income for November and December $7,205
Less dividends 4,000
Retained earnings, December 31, 2007 $3,205