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. Oct. 1 5. Rey invested $47,000 cash, a $21,000 computer system, and $9,000 of office equipment in the company in exchange for its common stock 3 The company purchased $1,330 of computer supplies on credit from Harris Office Products. 6 The company billed Easy Leasing $5,000 for services performed in installing a new web server. 8 The company paid $1,330 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 $140 per day, as needed. 12 The company billed Easy Leasing another $2,400 for services performed. 15 The company received $5,000 cash from Easy Leasing as partial payment toward its account. 17 The company paid $805 cash to repair computer equipment danaged when moving it. 20 The company paid $1,688 cash for advertisements published in the local newspaper. 22 The company received $2,400 cash from Easy Leasing toward its account. 28 The company billed IFM Company $5,283 for services performed. 31 The company paid $980 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)

Answer 1

= Date Cash Accounts Receivable + Assets Computer Supplies - 1,330 1,330 Liabilities Accounts Payable Computer System 21,000 Office Equipment 9,000 Equity Common · Dividends + Revenues - Expenses Stock 77,000 - 47,000 + + + = + - - + + 1,330 1,330 + + 47,000 + + 21,000 + 9,000 = 77,000 + + + + 5,000 5,000 = 5,000 5,000 1,330 21,000 + + 9,000 - 77,000 + + 47,000 (1,330) + 45,670 + 1,330 (1,330) + 5,000 + 1,330 21,000 + + 9,000 77,000 5,000 + + + + + 45,670 + 1,330 21,000 9,000 = + + 77,000 + + + + 5,000 2,400 7,400 5,000 2,400 + 7,400 + (5,000) + 2,400 - 1,330 + 21,000 9,000 77,000 + + - + 01-Oct 03-Oct Bal 06-Oct Bal 08-Oct Bal 10-Oct Bal 12-Oct Bal 15-Oct Bal 17-Oct Bal 20-Oct Bal 22-Oct Bal 28-Oct Bal 31-Oct Bal 31-Oct Bal + 1,330 21,000 9,000 77,000 7,400 - + + + + + 45,670 5,000 50,670 (805) + 49,865 (1,688) + 48,177 + 2,400 50,577 2,400 + 1,330 21,000 9,000 77,000 + + + 7,400 - 805 805 1,688 2,493 + + + 1,330 21,000 + 9,000 77,000 - 7,400 - + + + 2,400 + (2,400) + + + + 1,330 + 21,000 + 9,000 77,000 + + 2,493 + 5,283 5,283 + 7,400 5,283 12,683 + + - - 1,330 + 21,000 + 9,000 + 77,000 - + + + 50,577 + (980) + 49,597 (3,500) + 46,097 + 2,493 980 3,473 5,283 + 1,330 + 21,000 + 9,000 77,000 - + 12,683 - + + 3,500 5,283 + 1,330 + 21,000 + 9,000 77,000 - 3,500 12,683 + + - 3,473