Question

On October 1, 2017, Santana Rey launched a computer services company called Business Solutions, which provides consulting services, computer system installations, and custom program development. Rey adopts the calendar year for reporting purposes and expects to prepare the company's first set of financial statements on December 31, 2017. The company's initial chart of accounts follows Account Cash Accounts Receivable Computer Supplies Prepaid Insurance Prepaid Rent ortice Equipment Computer Equipment Accounts Payable No. Account 101 Connon Stock 106 Dividends 126 Computer Services Revenue 128 Wages Expense 131 Advertising Expense 16) Mileage Expense 167 Miscellaneous Expenses 201 Repairs Expense-Computer No. 307 319 403 623 655 676 677 Det. 1 5. Rey invented $51,000 cash, a $29,000 computer system, and $9,000 of office equipment in the company in exchange for its common stock. 2 The company paid $3,280 cash for four months' pent. (Hint Debit Prepaid Rent for $3,280.) 3 The company purchased $1,360 of computer supplies on credit from Harris office Products. 5 The company paid $2,100 cash for one year's premium on property and ability insurance policy. (Hint: Debit Prepaid Insurance for $2,100.) 6 The company billed Easy Leasing 55,700 for services performed in installing a new web server. The company paid $1,360 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 $1,800 for services performed 15 The company received $5,700 cash from any leasing as partial payment on its account. 17 The company paid $770 cash to repair computer equipment that was damaged when moving it. 20 The company paid $1,698 cash for advertisements published in the local newspaper 22 The company received $1,000 cash from Easy Leasing on to account. 28 The company billed IT Company 55,608 for services performed 31 The company paid $980 cash for Lyn Addie's wages for seven days' work. 31 The company paid $3,600 cash in dividends. 1 The company reimbursed 8. Roy in cash for business automobile mileage allowance (Roy logged 1,000 miles at 50.30 per mile) 2 The company received $4,73) cash rron Liu Corporation for computer services perforned. 5 The company purchased computer supplies for $1,115 each from Here office Products 8 The company billed Gonez co. 55,868 for services perforned 13 The company received notification from Alex's Engineering Co. that Business Solutions's bid of $3,950 for an Nov.

Answer 1

Solution ;

Date	Particulars	Debit	Credit
Oct 1	Cash	51000
	Computer equipment	29000
	Office equipment	9000
	To Commonstock		89000
2	Prepaid Rent	3280
	To Cash		3280
3	Computer supplies	1360
	To Accounts payable		1360
5	Prepaid insurance	2100
	To Cash		2100
6	Accounts Receivable	5700
	To Computer service Revenue		5700
8	Accounts payable	1360
	To Cash		1360
10	No entry
12	Accounts receivable	1800
	To Computer service revenue		1800
15	Cash	5700
	To Accounts receivable		5700
17	Repair expense	770
	To Cash		770
20	Advertising expense	1698
	To Cash		1698
22	Cash	1800
	To Accounts receivable		1800
28	Accounts receivable	5608
	To Computer service revenue		5608
31	Wages expense	980
	To Cash		980
31	Divident	3600
	To Cash		3600
Nov 1	Mileage expense (1000*0.30)	300
	To Cash		300
2	Cash	4733
	To Computer services revenue		4733
5	Computer supplies	1115
	To Cash		1115
8	Accounts receivable	5868
	Computer service revenue		5868
13	No entry

18	Cash	3200
	To Accounts receivable		3200
22	Miscellaneous expense	220
	To Cash		220
24	Accounts Receivable	3950
	To Computer service revenue		3950
25	No entry
28	Mileage expense (1200 * 0.30)	360
	To Cash		360
30	Wages expense	1940
	To Cash		1940
30	Divident	1600
	To Cash		1600

          Ledger a/c    

	Cash a/c
Dr			Cr
Date	Particulars	Amount	Date	Particulars	Amount
Oct 1	Common stock	51000	2	Prepaid rent	3280
15	Accounts receivable	5700	5	Prepaid insurance	2100
22	Acconts receivable	1800	8	Accounts payable	1360
Nov     2	Computer service revenue	4733	17	Repair	770
Nov 18	Accounts receivable	3200	20	Advertising expense	1698
			31	Wages expense	980
			31	Divident paid	3600
			Nov 1	Mileage expense	300
			5	Computer supplies	1115
			22	Miscellaneous expense	220
			30	Wages expense	1940
			30	Divident	1600
				Mileage expense	360
				Balance c/d	47110
		66433			66433
	Accounts Receivable a/c
Date	Particulars	Amount	Date	Particulars	Amount
Oct 6	Computer service revenue	5700	Oct 15	Cash	5700
12	Computer service revenue	1800	22	Cash	1800
28	Computer service revenue	5608	Nov 18	Cash	3200
Nov 8	Computer revenue	5868
24	Computer service revenue	3950
				Balance c/d	12226
		22926			22926
	Computer supplies
Date	Particulars	Amount	Date	Particulars	Amount
Oct 3	Accounts payable	1360
Nov 5	Cash	1115		Balance c/d	2475
		2475			2475
	Prepaid insurance
Date	Particulars	Amount	Date	Particulars	Amount
Oct 5	Cash	2100
				Balance c/d	2100
		2100			2100
	Prepaid rent
Date	Particulars	Amount	Date	Particulars	Amount
Oct 2	Cash	3280
				Balance c/d	3280
		3280			3280
	Office equipment
Date	Particulars	Amount	Date	Particular	Amount
Oct 1	Common stock	9000
				Balance c/d	9000
		9000			9000
	Computer equipment
Date	Particulars	Amount	Date	Particular	Amount
Oct 1	Cash	29000
				Balance c/d	29000
		29000			29000
	Accounts payable
Date	Particulars	Amount	Date	Particulars	Amount
Oct 8	Cash	1360	Oct 3	Computer supplies	1360
		1360			1360
	Common stock
Date	Particulars	Amount	Date	Particulars	Amount
			Oct 1	Cash	51000
			,,	Computer equipment	29000
	Balance c/d	89000	,,	Office equipment	9000
		89000			89000
	Dividents
Date	Particulars	Amount	Date	Particulars	Amount
Oct 31	Cash	3600
Nov 30	Cash	1600		Balance c/d	5200
		5200			5200
	Computer service revenue
Date	Particulars	Amount	Date	Particulars	Amount
			Oct 6	Accounts receivable	5700
			Oct 12	Accounts receivable	1800
			Oct 28	Accounts receivable	5608
			Nov 2	Cash	4733
			Nov 8	Accounts receivable	5868
	Balance c/d	27659	24	Accounts receivable	3950
		27659			27659
	Wages expense
Date	Particulars	Amount	Date	Particulars	Amount
Oct 31	Cash	980
Nov 31	Cash	1940		Balance c/d	2920
		2920			2920

         

Advertising expense         

Date	Particulars	Amount	Date	Particulars	Date
Oct 20	Cash	1698
				Balance c/d	1698
		1698			1698
	Mileage expense
Date	Particulars	Amount	Date	Particulars	Amount
Nov 1	Cash	300
28	Cash	360		Balance c/d	660
		660			660
	Miscellanous expense
Date	Particulars	Amount	Date	Particulars	Amount
Nov 22	Cash	220
				Balance c/d	220
		220			220
	Repaire expense
Date	Particulars	Amount	Date	Particulars	Amount
Oct 17	Cash	770
				Balance c/d	770
		770			770
	Trial balance
	Particulars	Debit	Credit
	Cash	47110
	Accounts receivable	12226
	Computer supplies	2475
	Prepaid insurance	2100
	Prepaid rent	3280
	Office equipments	9000
	Computer equipment	29000
	Accounts payable		0
	Common stock		89000
	Divident	5200
	Computer service revenue		27659
	Wages expense	2920
	Advertising expense	1698
	Mileage expense	660
	Miscellanous expense	220
	Repaire expense	770
	Total	116659	116659