Question

Saved H On October 1, 2020, Santana Rey launched a computer services company called Business Solutions, which provides consulting services, computer system installations, and custom program development. The company's initial chart of accounts follows. NO. Account Cash Accounts Receivable Computer Supplies Prepaid Insurance Prepaid Rent Office Equipment Computer Equipment Accounts Payable No. Account 101 Common Stock 106 Dividends 126 Computer Services Revenue 128 Wages Expense 131 Advertising Expense 163 Mileage Expense 167 Miscellaneous Expenses 201 Repairs Expense-Computer 307 319 403 623 655 676 677 684 Oct. 1 S. Rey invested $49,000 cash, a $26,000 computer system, and $9,000 of office equipment in the company in exchange for common stock. 2. The company paid $3,280 cash for four months' rent. Minti Debit Prepaid Rent for $3,280. 3 The company purchased $1,330 of computer supplies on credit from Harris Office Products. 5 The company paid $1,740 cash for one year's premium on a property and liability insurance policy. Wint: Debit Prepaid Insurance for $1,740. 6 The company billed Easy Leasing 54,900 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. 12 The company billed Easy Leasing another $1,600 for services performed. 15 The company received $4,900 cash from Easy Leasing as partial payment on its account. 17 The company paid $800 cash to repair computer equipment that was damaged when moving it. 20 The company paid $1,703 cash for advertisements. 22 The company received $1,500 cash from Easy Leasing on its account. 28 The company billed ITM Company $5,608 for services performed. 31 The company paid $1,015 cash for Lyn Addie's wages for seven days' work. 31 The company paid a $3,300 cash dividend. Nov. 1 The company paid $310 cash for mileage expenses. 2 The company received $5,133 cash from Liu Corporation for computer services performed. 5 The company purchased computer supplies for $1,080 cash from Harris office Products. 8 The company billed Gomez Co. 56,068 for services performed. 13 The company agreed to perform future services for Alex's Engineering co. No work has yet been performed. Prev 1 of 2 !!! Next >

Answer 1

Business Solutions
Journal entries
Date	Account	Debit	Credit
1-Oct	Cash	$     49,000
	Computer Equipment	$     26,000
	Office Equipment	$        9,000
	Common Stock		$     84,000
2-Oct	Prepaid Rent	$        3,280
	Cash		$        3,280
3-Oct	Computer supplies	$        1,330
	Accounts Payable		$        1,330
5-Oct	Prepaid Insurance	$        1,740
	Cash		$        1,740
6-Oct	Accounts Receivable	$        4,900
	Computer Service Revenue		$        4,900
8-Oct	Accounts Payable	$        1,330
	Cash		$        1,330
10-Oct	No journal entry required
12-Oct	Accounts Receivable	$        1,600
	Computer Service Revenue		$        1,600
15-Oct	Cash	$        4,900
	Accounts Receivable		$        4,900
17-Oct	Repairs Expense—Computer	$           800
	Cash		$           800
20-Oct	Advertising expense	$        1,703
	Cash		$        1,703
22-Oct	Cash	$        1,600
	Accounts Receivable		$        1,600
28-Oct	Accounts Receivable	$        5,608
	Computer Service Revenue		$        5,608
31-Oct	Wages expense	$        1,015
	Cash		$        1,015
31-Oct	Dividends	$        3,300
	Cash		$        3,300
Nov
Date	Account	Debit	Credit
1-Nov	Mileage expense	$           310
	Cash		$           310
2-Nov	Cash	$        5,133
	Computer Service Revenue		$        5,133
5-Nov	Computer supplies	$        1,080
	Cash		$        1,080
8-Nov	Accounts Receivable	$        6,068
	Computer Service Revenue		$        6,068
13-Nov	No journal entry required