Im working on simple map app, I added google-play-services.jar and its reference to gradle
dependencies {
compile files(\'libs/android-support-v4.jar\',


Hit check on all tools, to be safe

Hit check on API you are working with

Hit check on all extras to be safe

Go to file -> project structure



Finally go to build at the top of the screen and hit rebuild project
As @Matt said, it is correct, I am here covered also which I did not find in the answer.
To add the Google Play Service library in your application project, follow below steps :-
1) Open the build.gradle file of your application module directory. See screenshot

2) Add new in your dependecies, here you to update the version number whenever you update the Google Play Service.
dependencies {
...
compile 'com.google.android.gms:play-services:4.2.42'
compile files('src/main/libs/gson-2.2.4.jar')
}
3) Now Lastly important save your file and click on Sync with Gradle Files
in the toolbar.