Question

On October 1, 2019, Santana Rey launched a computer services company, Business Solutions, that is organized as a corporation and provides consulting services, computer system installations, and custom program development. 1 S. Rey invested $52,000 cash, a $27,000 computer system, and $10, 500 of office equipment in the company in exchange for its Oct. common stock. 3 The company purchased $1,510 of computer supplies on credit from Harris Office Products. 6 The company billed Easy Leasing $5,700 for services performed in installing a new web server. 8 The company paid $1,510 cash for the computer supplies purchased from Harris Office Products on October 3. 10 The company hired Lyn Addie as a part-time assistant for $145 per day, as needed. 12 The company billed Easy Leasing another $1,500 for services performed. 15 The company received $5,700 cash from Easy Leasing as partial payment toward its account. 17 The company paid $745 cash to repair computer equipment damaged when moving it. 20 The company paid $1,683 cash for advertisements published in the local newspaper. 22 The company received $1,500 cash from Easy Leasing toward its account. 28 The company billed IFM Company $5, 253 for services performed. 31 The company paid $1,015 cash for Lyn Addie's wages for seven days of work this month. 31 The company paid $3,500 cash in dividends to the owner (sole shareholder). Required: Enter the amount of each transaction on individual items of the accounting equation. Show new balances after each transaction. (Enter decreases to account balances with a minus sign. Enter as per the transaction order provided in the question data.) Assets Liabilities Equity Computer Supplies Computer System Office Equipment Accounts Receivable Accounts Common Stock Date Cash Dividends Revenues Expenses Payable 89,500 Oct. 1 27,000 10,500 52,000 + + s - Oct. 3 1,510 + 1,510 1,510 + 89,500 - 52,000 + 0+ 10,500 = 1,510 + Bl. 27,000 + Ol + 5,700 Oct. 6 5,700 89.500 - 52,000 + 5,700 + 27,000 + 10,500 = 1,510 + 5,700 - Bal. 1,510 + Ol + Oct. 8 (1,510) - (1,510) + 10,500 = 1,510 + 89,500 - 50,490 + 27,000 - Bal. 5,700 O1+ Ol + 5,700 Oct. 10 27,000 50,490 + 5,700 + 89,500 89,500 - 1,510 + 10,500 = Bal. Ol+ Ol + 5,700 - 1,500 Oct. 12 1,500 + 7,200 - 7,200 + 27,000 + 10,500 = 89,500 50,490 + Bal. 1,510 Ol + Ol + - 5,700 + + Oct. 15 (5,700)- 1,500- 1,510 + 10,500 = Bal. 56,190 27,000 + 89,500 7,200 745 (745) 55,445 + Oct. 17 27,000 - 10,500 = 1,510 + Bal. 1,500 89,500 Ol + 7,200 745 (1,683) 53,762 + Oct. 20 1,683 89,500 - 7,200 - 1,500 + 10,500 = Bal. 1,510 + 27,000 + Ol + 2,428 Oct. 22 1,500 + (1,500) 1,510 + 55,262 + 27,000 + 10,500 = 89,500 - 7,200 - Bal. Ol+ 2,428 + Oct. 28 5,253 5,253 89,500 - 1,510+ 27,000 12,453 - 5,253 + 2,428 55,262 + + 10,500 = Bal. Oct. 31 (1,015) 1,015 5,253 + 54,247 + 27,000 + 1,510 + 10,500 = 89,500 Bal. 12,453 3,443 ........ (3,500) 3,500 + Oct. 31 1,510 + 50,747 + 5.253 + 27,000 + S 3,500 + 10,500 89,500 12,453 3,443 Bal.

The question is: Enter the amount of each transaction on individual items of the accounting equation. Show new balances after each transaction.

Answer 1

Assets

=

Liabilities

+

Equity

Accounts

Computer

Computer

Office

Accounts

Common

Date

Cash

+

Receivable

+

Supplies

+

System

+

Equipment

=

Payable

+

Stock

–

Dividends

+

Revenues

–

Expenses

Oct. 1

52000

+

+

+

27000

+

10500

=

+

89500

–

+

–

Oct. 3

+

+

1,510

+

+

=

1,510

+

–

+

–

Bal.

52000

+

0

+

1510

+

27000

+

10500

=

1510

+

89500

–

0

+

0

–

0

Oct. 6

+

5,700

+

+

+

=

+

–

+

5,700

–

Bal.

52000

+

5700

+

1510

+

27000

+

10500

=

1510

+

89500

–

0

+

5700

–

0

Oct. 8

-1,510

+

+

+

+

=

-1,510

+

–

+

–

Bal.

50490

+

5700

+

1510

+

27000

+

10500

=

0

+

89500

–

0

+

5700

–

0

Oct. 10

+

+

+

+

=

+

–

+

–

Bal.

50490

+

5700

+

1510

+

27000

+

10500

=

0

+

89500

–

0

+

5700

–

0

Oct. 12

+

1,500

+

+

+

=

+

–

+

1,500

–

Bal.

50490

+

7200

+

1510

+

27000

+

10500

=

0

+

89500

–

0

+

7200

–

0

Oct. 15

5,700

+

-5,700

+

+

+

=

+

–

+

–

Bal.

56190

+

1500

+

1510

+

27000

+

10500

=

0

+

89500

–

0

+

7200

–

0

Oct. 17

-745

+

+

+

+

=

+

–

+

–

745

Bal.

55445

+

1500

+

1510

+

27000

+

10500

=

0

+

89500

–

0

+

7200

–

745

Oct. 20

-1,683

+

+

+

+

=

+

–

+

–

1,683

Bal.

53762

+

1500

+

1510

+

27000

+

10500

=

0

+

89500

–

0

+

7200

–

2428

Oct. 22

1,500

+

-1,500

+

+

+

=

+

–

+

–

Bal.

55262

+

0

+

1510

+

27000

+

10500

=

0

+

89500

–

0

+

7200

–

2428

Oct. 28

+

5,253

+

+

+

=

+

–

+

5,253

–

Bal.

55262

+

5253

+

1510

+

27000

+

10500

=

0

+

89500

–

0

+

12453

–

2428

Oct. 31

-1015

+

+

+

+

=

+

–

+

–

1015

Bal.

54247

+

5253

+

1510

+

27000

+

10500

=

0

+

89500

–

0

+

12453

–

3443

Oct. 31

-3,500

+

+

+

+

=

+

–

3,500

+

–

Bal.

50747

+

5253

+

1510

+

27000

+

10500

=

0

+

89500

–

3500

+

12453

–

3443