Question

On October 1, 2019, 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, 2019. 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 $47,000 cash, - $21,000 computer system, and $9,000 of office equipment in the company in exchange for connon stock 2 The company paid $3,280 cash for four months' rent. Hint: Debit Prepaid Rent for $3,280. 3. The company purchased $1,390 of computer supplies on credit from Harris Office Products 5 The company paid $2,160 cash for one year's premium on a property and liability insurance policy. Mint: Debit Prepaid Insurance for $2,160. 6 The company billed Easy Leasing 55,000 for services performed in installing a new web server. 8 The company paid $1,390 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 $1,800 for services performed. 15 The company received $5,000 cash from Easy Leasing as partial payment on its account. 17 The company paid $760 cash to repair computer equipment that was damaged when moving it. 20 The company paid $1,708 cash for advertisenents published in the local newspaper. Активирайте Wir

Answer 1

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Answer 1 Journal Entries in the books of Business Solutions Credit Computer System Date Debit Date Oct-01 $ 21,000 Credit Office Equipment Date Debit Date Credit Oct-01 $ 9,000 Date Account Titles Oct-01 Cash Computer System Office Equipment Common Stock Debit $ 47,000 $ 21,000 $ 9,000 $ 77,000 $ 3,280 Oct-02 Prepaid Rent Cash Answer 2 Ledger accounts in the books of Business Solutions Cash Date Debit Date Credit Oct-01 $ 47,000 Oct-02 $ 3,280 Oct-15 $ 5,000 Oct-05) $ 2,160 Oct-22 1800 Oct-08 $ 1,390 Nov-02 $ 5,133 Oct-17) $ 760 Nov-18 $ 2,508 Oct-20 1708 Oct-31 $ 770 Oct-31 $ 2,900 Nov-01 $ Nov-05 $ 1,035 Nov-22 $ 170 Nov-28 $ 276 Nov-30 $ 1,540 Nov-30 $ 1,500 balance $ 43,722 $ 61,441 $ 61,441 $ 3,280 balance $ 21,000 balance $ 9,000 230 $ 1,390 Oct-03 Computer Supplies Accounts Payable $ 1,390 $ 2,160 Oct-05 Prepaid Insurance Cash $ 2,160 $ 5,000 $ 21,000 $ 21,000 $ 9,000 $ 9,000 Oct-06 Accounts Receivable Computer Services Revenue $ 5,000 $ 1,390 Oct-08 Accounts Payable Cash Prepaid Rent Date Debit Date Credit Oct-02 $ 3,280 balance $ 3,280 Common Stock Date Debit Date Credit Oct-01 $ 47,000 balance $77,000 Oct-01 $ 21,000 Oct-01 $ 9,000 Computer Supplies Date Debit Date Credit Oct-03 $ 1,390 Nov-05 $ 1,035 balance $ 2,425 $ 1,390 Oct-10 No entry $ 1,800 $77,000 $ 77,000 $ 3,280 $ 3,280 $ 2,425 $ 2,425 Oct-12 Accounts Receivable Computer Services Revenue $ 1,800 $ 5,000 Oct-15 Cash Accounts Receivable Accounts Payable Date Debit Date Credit Oct-08 $ 1,390 Oct-01 $ 1,390 Prepaid Insurance Date Debit Date Credit Oct-05 $ 2,160 balance $ 2,160 $ 5,000 Accounts Receivable Date Debit Date Credit Oct-06 $ 5,000 Oct-15 $ 5,000 Oct-12 $ 1,800 Oct-22 $ 1,800 Oct-28 $ 6,000 Nov-02 $ 5,133 Nov-08 $ 6,668 Nov-18 $ 2,508 Nov-24 $ 4,150 balance $ 9,177 $ 760 Oct-17 Repairs Expense-Computer Cash $ 760 $ 1,708 Oct-20 Advertising Expense Cash $ 1,708 $ 1,390 $ 1,390 $ 2,160 $ 2,160 $ 23,618 $ 23,618 $ 1,800 Oct-22 Cash Accounts Receivable $ 1,800 Repairs Expense-Computer Date Debit Date Credit Oct-17 $ 760 Advertising Expense Date Debit Date Credit Oct-17 $ 1,708 $ 6,000 Oct-28 Accounts Receivable Computer Services Revenue Computer Services Revenue Date Debit Date Credit Oct-06 $ 5,000 Oct-12 $ 1,800 balance $ 23,618 Oct-28 $ 6,000 Nov-08 $ 6,668 Nov-24 $ 4,150 $ 6,000 balance $ 760 balance $ 1,708 $ 770 Oct-31 Wages Expense Cash $ 770 $ 23,618 $ 23,618 $ 760 $ 760 $ 1,708 $ 1,708 $ 2,900 Oct-31 Dividends Cash $ 2,900 Credit $ 230 Nov-01 Mileage expense (1000 miles * $0.23) Cash Wages Expense Date Debit Date Oct-31 $ 770 Nov-30 $ 1,540 balance Dividends Date Debit Date Credit Oct-31 $ 2,900 Nov-30 $ 1,500 balance $ 4,400 Mileage expense Date Debit Date Credit Nov-01 $ 230 Nov-22 $ 276 balance $ 506 $ 230 $ 2,310 $ 5,133 Nov-02 Cash Accounts Receivable $ 5,133 $ 2,310 $ 2,310 $ 4,400 $ 4,400 $ 506 $ 506 $ 1,035 Nov-05 Computer Supplies Cash $ 1,035 Miscellaneous Expenses Date Debit Date Credit Nov-22 $ 170 balance $ $ 6,668 170 Nov-08 Accounts Receivable Computer Services Revenue $ 6,668 $ 170 $ 170 Nov-13 No entry $ 2,508 Nov-18 Cash Accounts Receivable $ 2,508 $ 170 Nov-22 Miscellaneous Expenses Cash $ 170 $ 4,150 Nov-24 Accounts Receivable Computer Services Revenue $ 4,150 Nov-25 No entry Answer 3 Trial Balance Business Solutions as of end of November Accounts Debit Credit Cash $ 43,722 Computer System $ 21,000 Office Equipment $ 9,000 Common Stock $ 77,000 Prepaid Rent $ 3,280 Computer Supplies $ 2,425 Prepaid Insurance $ 2,160 Accounts Receivable $ 9,177 Computer Services Revenue $ 23,618 Repairs Expense-Computer $ 760 Advertising Expense $ 1,708 Wages Expense $ 2,310 Dividends $ 4,400 Mileage expense $ 506 Miscellaneous Expenses $ 170 Total $ 100,618 $ 100,618 $ $ 276 Nov-28 Mileage expense (1200 miles * $0.23) Cash $ 276 $ Nov-30 Wages Expense Cash 1,540 $ 1,540 $ 1,500 Nov-30 Dividends Cash $ 1,500