After the success of the company’s first two months, Santana Rey continues to operate Business Solutions. The November 30, 2015,
unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2015) follows.
No. Account Title Debit Credit
101 Cash $ 38,464
106 Accounts receivable 13,518
126 Computer supplies 2,545
128 Prepaid insurance 2,220
131 Prepaid rent 2,980
163 Office equipment 8,700
164 Accumulated depreciation—Office equipment $ 0
167 Computer equipment 23,600
168 Accumulated depreciation—Computer equipment 0
201 Accounts payable 0
210 Wages payable 0
236 Unearned computer services revenue 0
301 S. Rey, Capital 72,000
302 S. Rey, Withdrawals 5,600
403 Computer services revenue 31,529
612 Depreciation expense—Office equipment 0
613 Depreciation expense—Computer equipment 0
623 Wages expense 2,525
637 Insurance expense 0
640 Rent expense 0
652 Computer supplies expense 0
655 Advertising expense 1,688
676 Mileage expense 644
677 Miscellaneous expenses 250
684 Repairs expense—Computer 795
Totals $ 103,529 $ 103,529
1- The December 31 inventory count of computer supplies shows $650 still available
2-The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.
3- The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.
4- Three of the four months' prepaid rent has expired.
please help, thanks.
. Cross multiply to get 
, and 
. That simplifies down to 
. Pull out the 9 as a perfect square of 3 and you're left with 
, first choice above.
