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On September 1, 2015, Elizbeth tunner launched a computer services company called Computer Solutions, which provides consulting services, computer system installations, and custom program development. Tunner adopts the calendar year for reporting purposes and expects to prepare the company's first set of financial statements on December 31, 2015. Sept. 1 E. Tunner invested $45,000 cash, a $20,000 computer system, and $8,000 of office equipment in the company. 2 The company paid $3,300 cash for four months' rent. (Hint: Debit Prepaid Rent for $3,300.) 3 The company purchased $1,420 of computer supplies on credit from Harris Office Products. 5 The company paid $2,220 cash for one year's premium on a property and liability insurance policy. (Hint: Debit Prepaid Insurance for $2,220.) 6 The company billed Easy Leasing $4,800 for services performed in installing a new web server. 8 The company paid $1,420 cash for the computer supplies purchased from Harris Office Products on Sept 3. 10 The company hired Lyn Addie as a part-time assistant for $125 per day, as needed. 12 The company billed Easy Leasing another $1,400 for services performed. 15 The company received $4,800 cash from Easy Leasing as partial payment on its account. 17 The company paid $805 cash to repair computer equipment that was damaged when moving. 20 The company paid $1,728 cash for advertisements published in the local newspaper. 22 The company received $1,400 cash from Easy Leasing on its account. 28 The company billed IFM Company $5,208 for services performed. 31 The company paid $875 cash for Lyn Addie's wages for seven days' work. 31 E. Tunner withdrew $3,600 cash from the company for personal use. Oct. 1 The company reimbursed E. Tunner in cash for business automobile mileage allowance (Rey logged 1,000 miles at $0.32 per mile). 2 The company received $4,633 cash from Liu Corporation for computer services performed. 5 The company purchased computer supplies for $1,125 cash from Harris Office Products. 8 The company billed Gomez Co. $5,668 for services performed. 13 The company received notification from Alex's Engineering Co. that Business Solutions' bid of $3,950 for an upcoming project is accepted. 18 The company received $2,208 cash from IFM Company as partial payment of the sept 28 bill. 22 The company donated $250 cash to the United Way in the company's name 24 The company completed work for Alex's Engineering Co. and sent it a bill for $3,950. 25 The company sent another bill to IFM Company for the past-due amount of $3,000. 28 The company reimbursed E. Tunner in cash for business automobile mileage (1,200 miles at $0.32 per mile). 30 The company paid $1,750 cash for Lyn Addie's wages for 14 days' work. 30 E. Tunner withdrew $2,000 cash from the company for personal use. Required 1. Prepare journal entries to record each of the following transactions for Business Solutions. 2. Open ledger accounts. 3. Prepare a trial balance as of the end of October. 4. Prepare Financial Statements.

Answer 1

Ca computer solutions - Microsoft Excel Home Insert Page Layout Formulas Data Review View Developer (?) X х Σ AutoSum και * Cut EB Copy Times New Rom - 12 AA Wrap Text Custom Fill - Paste BI U ra Merge & Center % .00 .00.0 Insert Delete Format Format Painter Conditional Format Cell Formatting as Table Styles Styles 2 Clear - Sort & Find & Filter - Select Editing Clipboard Font Alignment Number Cells B85 foc A B C D E F F G H 1 1 2 Debit Credit 6 $ S $ 45,000.00 20,000.00 8,000.00 S 73,000.00 9 S 3,300.00 S 3,300.00 Computer Solutions 31) 4 Date General Journal 5 1-Sep Cash Computer Equipment 7 Office Equipment 8 Common Stock (E.Tunner invested in business by paying $46000 cash $21000 computer equipment and $9000 office Equipment) 10 2-Sep Prepaid Rent 11 Cash 12 (Four month's rent paid inadvance) 13 3-Sep Computer Supplies 14 Accounts Payable 15 (Computer supplies purchased from Harris office products on credit) 5-Sep Prepaid Insurance 17 Cash 18 (One year insurance prmium paid for property and liability) 19 6-Sep Accounts Receivable 20 Computer Service Revenue (Service provide to Easy leasing on credit) 8-Senl Accounts Pavable K Sheet1 Sheet2 Sheet3 Ready ME S 1.420.00 S 1,420.00 16 S 2.220.00 S 2,220.00 S 4,800.00 S 4.800.00 21 22 142000 IIII BO 100% + U 10:37 16-09-2020 Type here to search x ENG D

Cla computer solutions - Microsoft Excel Home Insert Page Layout Formulas Data Review View Developer (?) X х Σ AutoSum και Times New Rom - 12 AA Wrap Text Custom Fill - * Cut EB Copy Paste Format Painter Clipboard BIU Merge & Center % .00 .00.0 Insert Delete Format Conditional Format Cell Formatting as Table - Styles Styles 2 Clear - Sort & Find & Filter - Select Font Alignment Number Cells Editing B85 foc A B С D E F F. G H $ 1,420.00 S 1,420.00 S 1,400.00 28 S 1.400.00 S 4.800.00 31 S 4.800.00 S 805.00 22 8-Sep Accounts Payable 23 Cash 24 (Amount paid to Harris office products) 25 10-Sep No Journal Entry required 26 27 12-Sep Accounts Receivable Computer Service Revenue 29 (Service provide to Easy leasing on credit) 30 15-Sep Cash Accounts Receivable 32 (Cash received from Easy leasing) 33 17-Sep Repairs Expenses 34 Cash 35 (Ampount paid for computer equipment repairs) 36 20-Sep Advetising Expense 37 Cash 38 (Amount paid for advertisement in local newspaper) 39 22-Sep Cash 40 Accounts Receivable 41 (Amount received from Easy leasing) 28-Sep Accounts Receivable 43 Computer Service Revenue 44 (Service provide to IFM company on credit) K > Sheet1 Sheet2 Sheet3 Ready MP S 805.00 $ 1,728.00 S 1,728.00 S 1.400.00 S 1.400.00 42 S 5,208.00 S 5,208.00 IIII BO 100% + U 10:37 16-09-2020 Type here to search x ENG D

Cla computer solutions - Microsoft Excel Home Insert Page Layout Formulas Data Review View Developer (?) X х Σ AutoSum και Times New Rom - 12 AA Wrap Text Custom Fill - * Cut EB Copy Paste Format Painter Clipboard BI U Merge & Center % .00 .00.0 Insert Delete Format Conditional Format Cell Formatting as Table Styles Styles 2 Clear - Sort & Find & Filter - Select Font Alignment Number Cells Editing B85 foc A B с D E F F. G H $ 875.00 S 875.00 S 3.600.00 S 3.600.00 S 320.00 S 320.00 S 4,633.00 S 4.633.00 45 30-Sep Wages Expenses 46 Cash 47 (Wages paid to Lyn Addie for wages) 48 30-Sep Drawings 49 Cash 50 (Cash Withdral for personal use) 51 1-Oct Mileage Expenses(1000*32) 52 Cash 53 (Automobile mileage expenses paid to E. Tunner) 54 2-Oct Cash 55 Computer Service Revenue 56 (Cash received for servie provide to Liu Corporation) 57 5-Oct Computer Supplies 58 Cash 59 (Computer supplies purchased for Harris office Products) 60 8-Oct Accounts Receivable 61 Computer Service Revenue 62 (Services provided to Gomez Company) 63 13-Oct No Entry 64 65 18-Oct Cash 66 Acconts Receivable 67 (Amount received from IFM Company) KI Sheet1 Sheet2 Sheet3 Ready S 1.125.00 S 1.125.00 S $ 5.668.00 S 5.668.00 S 2.208.00 S 2.208.00 IIII BO 100% + U 10:37 16-09-2020 Type here to search jä x ENG D

Cla computer solutions - Microsoft Excel Home Insert Page Layout Formulas Data Review View Developer (?) X х Σ AutoSum και Times New Rom - 12 AA Wrap Text Custom Fill - * Cut EB Copy Paste Format Painter Clipboard BIU Merge & Center % .00 .00.0 Insert Delete Format Conditional Format Cell Formatting as Table Styles Styles 2 Clear - Sort & Find & Filter - Select Font Alignment Number Cells Editing B85 foc A B с D E F F. G H $ 250.00 S 250.00 $ 3,950.00 S 3,950.00 S 384.00 S 384.00 S 1,750.00 S 1,750.00 68 22-Oct Miscellaneous Expenses 69 Cash 70 (Amount donated to the United Way) 71 24-Oct Accounts Receivable 72 Computer Service Revenue 73 (Amount billed to Alex Engineering for service provided) 74 25-Oct No Entry 75 76 28-Oct| Mileage Expenses(1200* 32) 77 Cash 78 (Automobile mileage expenses paid to E.Tunner) 79 30-Oct| Wages Expenses 80 Cash 81 (Wages paid to Lyn Addie for 14 days wages) 82 30-Oct Drawings 83 Cash 84 (Cash withdraw for personal use) 85 86 2) Ledger Accounts 87 88 Date Account Title and Explanation 89 1-Sep E.Turnner Capital 2.SenDrenaid Rent K™ Sheet1 Sheet2 Sheet3 Ready MI Type here to search S 2.000.00 S 2.000.00 Cash Alc Credit Debit S 45,000.00 Balance S 45,000.00 3.300.00ls 41 700.00 III 90 0 BO 100% + U 10:37 16-09-2020 x ENG

Cla computer solutions - Microsoft Excel Home Insert Page Layout Formulas Data Review View Developer (?) X Times New Rom - 12 -A Wrap Text Custom Σ AutoSum και Fill - Paste * Cut EB Copy Format Painter Clipboard BI U Merge & Center Insert Delete Format Conditional Format Cell Formatting as Table Styles Styles Clear Sort & Find & Filter - Select Font Alignment Number Cells Editing B85 A C E F G H Cash Alc Credit Debit S 45,000.00 90 S S S S 4,800.00 S S $ 1,400.00 B 86 2) Ledger Accounts 87 88 Date Account Title and Explanation 89 1-Sep E. Turnner Capital 2-Sep Prepaid Rent 91 5-Sep Prepaid Insurance 92 8-Sep Accounts Payable 93 15-Sep Accounts Receivable 94 17-Sep Repairs Expense 95 20-Sep Advertisement Expense 96 22-Sep Accounts Receivable 97 30-Sep, wages Expense 98 30-Sep Drawings 1-Oct Mileage Expense 100 2-Oct Computer Service Revenue 101 5-Oct Computer Supplies 102 18-Oct Accounts Receivable 103 22-Oct Miscellaneous Expense 104 28-Oct Mileage Expense 105 30-Oct wages Expense 106 30-Oct Drawings 107 108 K Sheet1 Sheet2 Sheet3 Ready ME S S S Balance S 45,000.00 3,300.00 41.700.00 2,220.00 $ 39,480.00 1,420.00 $ 38,060.00 S 42.860.00 805.00 $ 42,055.00 1,728.00 $ 40.327.00 S 41.727.00 875.00 $ 40,852.00 3,600.00 $ 37.252.00 320.00 $ 36,932.00 S 41,565.00 1.125.00 $ 40,440.00 S 42,648.00 250.00 $ 42,398.00 384.00 $ 42.014.00 1.750.00 $ 40.264.00 2,000.00 $ 38,264.00 99 S 4,633.00 S S 2.208.00 S S S $ Accounts Receivable BO 100% + U 10:38 16-09-2020 Type here to search 0x ENG D

Cla computer solutions - Microsoft Excel Home Insert Page Layout Formulas Data Review View Developer X (?) Times New Rom - 12 -A Wrap Text Custom Σ AutoSum και Fill - Paste * Cut EB Copy Format Painter Clipboard BI U Merge & Center Insert Delete Format Conditional Format Cell Formatting as Table Styles Styles Clear Sort & Find & Filter - Select Font Alignment Number Cells Editing B85 A B с E F G H 108 Credit Accounts Receivable Debit S $ 4,800.00 1,400.00 S $ Balance S 4.800.00 6,200.00 4.800.00 1,400.00 1.400.00 5,208.00 10.876.00 2.208.00 8,668.00 12.618.00 5,208.00 5,668.00 $ $ S 3,950.00 109 Date Account Title and Explanation 110 6-Sep Computer Service Revenue 111 12-Sep Computer Service Revenue 112 15-Sep Cash 113 22-Sep Cash 114 28-Sep Computer Service Revenue 115 8-Oct Computer Service Revenue 116 18-Oct Cash 117 24-Oct Computer Service Revenue 118 119 120 Date Account Title and Explanation 121 3-Sep Accounts Payable 122 5-Oct Cash 123 124 125 Date Account Title and Explanation 126 5-Sep Cash 127 128 129 Date Account Title and Explanation K Sheet1 Sheet2 Sheet3 Ready ME Credit Computer Supplies Debit $ $ 1.420.00 1.125.00 Balance $ 1,420.00 2.545.00 Prepaid Insurance Debit S Credit Balance S 2.220.00 2.220.00 Prepaid Rent Debit Credit Balance OM 100% + U 10:38 16-09-2020 Type here to search Px ENG D

Cla computer solutions - Microsoft Excel Home Insert Page Layout Formulas Data Review View Developer (?) X х AutoSum - * Cut E Copy Times New Rom - 12 AA Wrap Text Custom Fill - Paste BIU Merge & Center - % .00 .00.0 Insert Delete Format Format Painter Conditional Format Cell Formatting as Table Styles Styles 2 Clear - Sort & Find & Filter - Select Editing Clipboard Font Alignment Number Cells B85 foc А B C D E F H 128 129 Date Prepaid Rent Debit S Account Title and Explanation 2-Sep Cash Credit Balance S 3,300.00 130 3,300.00 131 132 133 Office Equipment Debit S Account Title and Explanation 1-Sep E.Turnner Capital Credit Balance S 8.000.00 8,000.00 134 Date 135 136 137 138 Date 139 140 Computer Equipment Debit S Account Title and Explanation 1-Sep E.Turner Capital Credit Balance S 20,000.00 20,000.00 141 Accounts Payable Debit Credit $ Balance 1.420.00 $ 1.420.00 S S 1.420.00 142 Date Account Title and Explanation 143 3-Sep Computer Supplies 144 8-Sep Cash 145 146 147 Date Account Title and Explanation 148 1-Sep Cash 149 1-Sep Computer Equipment Sheet1 Sheet2 Sheet30 Ready ME E.Turnner Capital Debit Credit S S Balance 45,000.00 S 45.000.00 20,000.00 $ 65,000.00 BED 100% + Type here to search 4x ENG 10:38 16-09-2020 D

Cla computer solutions - Microsoft Excel Home Insert Page Layout Formulas Data Review View Developer (?) X х AutoSum - * Cut EB Copy Times New Rom - 12 AA Wrap Text Custom Fill - Paste BIU Merge & Center % .00 .00.0 Insert Delete Format Format Painter Conditional Format Cell Formatting as Table Styles Styles 2 Clear - Sort & Find & Filter - Select Clipboard Font Alignment Number Cells Editing B85 foc А B с D E F H 146 E.Turnner Capital Debit 147 Date 148 Account Title and Explanation 1-Sep Cash 1-Sep Computer Equipment 1-Sep Office Equipment Credit S S S Balance 45,000.00 $ 45,000.00 20,000.00 $ 65,000.00 8,000.00 $ 73,000.00 149 150 151 152 Drawings Credit 153 Date 154 155 156 Account Title and Explanation 30-Sep Cash 30-Oct Cash Debit $ S 3.600.00 2,000.00 Balance S 3,600.00 $ 5,600.00 157 158 Computer Service Revenue Debit 159 Date 160 161 Account Title and Explanation 6-Sep Accounts Receivable 12-Sep Accounts Receivable 28-Sep Accounts Receivable 2-Oct Cash 8-Oct Accounts Receivable 24-Oct| Accounts Receivable Credit S S S S 162 163 Balance 4.800.00 $ 4,800.00 1,400.00 6,200.00 5.208.00 11.408.00 4,633.00 16,041.00 5,668.00 21.709.00 3,950.00 25,659.00 164 S 165 S 166 167 Wages Expenses Sheet2 Sheet3 KM Sheet1 Ready MI BO 100% Type here to search jj 4x ENG 10:38 16-09-2020 D

Cla computer solutions - Microsoft Excel Home Insert Page Layout Formulas Data Review View Developer (?) X х AutoSum - Times New Rom - 12 AA Wrap Text Custom Fill - * Cut E Copy Paste Format Painter Clipboard BIU Merge & Center % .00 .00.0 Insert Delete Format Conditional Format Cell Formatting as Table Styles Styles 2 Clear - Sort & Find & Filter - Select Editing Font Alignment Number Cells B85 foc А B C D E F H 167 Credit Account Title and Explanation 30-Sep Cash 30-Oct Cash Wages Expenses Debit S $ 875.00 1.750.00 Balance S 875.00 S 2.625.00 168 Date 169 170 171 172 173 Date 174 Advertisement Expense Debit S Account Title and Explanation 20-Sep Cash Credit Balance $ 1.728.00 1.728.00 175 176 177 Credit 178 Date 179 Account Title and Explanation 1-Oct Cash 28-Oct Cash Mileage Expense Debit S $ 320.00 384.00 Balance S S 320.00 704.00 180 181 182 183 Date 184 Credit Miscellaneous Expenses Debit S Account Title and Explanation 22-Oct Cash Balance S 250.00 250.00 185 186 187 Repairs Expenses Computer Debit 188 Date Credit Balance Account Title and Explanation Sheet1 Sheet2 Sheet3 Ready BO 100% + U 10:38 16-09-2020 Type here to search 4x ENG D

Cla computer solutions - Microsoft Excel Home Insert Page Layout Formulas Data Review View Developer (?) X х AutoSum - Times New Rom - 12 AA Wrap Text Custom Fill - * Cut EB Copy Paste Format Painter Clipboard BI U Merge & Center % .00 .00.0 Insert Delete Format Conditional Format Cell Formatting as Table Styles Styles 2 Clear - Sort & Find & Filter - Select Editing Font Alignment Number Cells B85 foc А B C C D E F H 187 188 Date Repairs Expenses-Computer Debit S Account Title and Explanation 17-Sep Cash Credit Balance S 189 805.00 805.00 190 1913) 192 193 194 Computer Solutions Trial Balance October 31st 195 196 Debit Credit 197 198 199 200 S S S $ $ S S Account Title & Explaination Cash Accounts Receivable Computer Supplies Prepaid Insurance Prepaid Rent Office Equipment Computer Equipment E.Turnner Capital Drawings Computer Service Revenue Wages Expenses Advertising Expenses MARA CORSA Sheet2 Sheet3 38,264.00 12.618.00 2,545.00 2,220.00 3,300.00 8,000.00 20,000.00 201 202 203 204 S 73,000.00 205 $ 5,600.00 206 S 25,659.00 207 S S 2.625.00 1,728.00 208 200 701 nn Sheet1 IIII Ready BO 100% U + Type here to search O 0x ENG 10:38 16-09-2020 D

Cla computer solutions - Microsoft Excel Home Insert Page Layout Formulas Data Review View Developer (?) X х Σ AutoSum και Times New Rom - 12 AA Wrap Text Custom Fill - * Cut EB Copy Paste Format Painter Clipboard BIU Merge & Center % .00 .00.0 Insert Delete Format Conditional Format Cell Formatting as Table Styles Styles 2 Clear - Sort & Find & Filter - Select Font Alignment Number Cells Editing B85 foc A B с D E F F. G H 197 198 199 200 $ S $ S S S S 201 202 203 73,000.00 204 205 206 Cash Accounts Receivable Computer Supplies Prepaid Insurance Prepaid Rent Office Equipment Computer Equipment E.Turnner Capital Drawings Computer Service Revenue Wages Expenses Advertising Expenses Mileage Expenses Miscellaneous Expenses Repair Expenses-Computer Total 38,264.00 12.618.00 2,545.00 2.220.00 3,300.00 8.000.00 20.000.00 S 5.600.00 S 2.625.00 1.728.00 704.00 250.00 805.00 98,659.00 S S 25,659.00 207 208 209 S S S S $ S 210 211 212 98,659.00 213 214 215 Business Solutions Income Statement For the three months ended October 31st, 2015 216 217 S 25,659.00 218 Computer Service Revenue Expenses Wanes Fynenses Sheet2 Sheet3 262500 219 * Ready Sheet1 IIII BO 100% U + Type here to search j 0x ENG 10:38 16-09-2020 D

Cla computer solutions - Microsoft Excel Home Insert Page Layout Formulas Data Review View Developer (?) X х Σ AutoSum και * Cut Ea Copy Times New Rom - 12 AA Wrap Text General Fill - Paste BI U Merge & Center - % 7 * .00 .00 0 Insert Delete Format Format Painter Conditional Format Cell Formatting as Table Styles Styles 2 Clear - Sort & Find & Filter - Select Editing Clipboard Font E Alignment Number Cells 1231 foc A B С D E F G H 213 214 215 Computer Solutions Income Statement For the three months ended October 31st, 2015 216 217 S 25,659.00 218 219 220 221 Computer Service Revenue Expenses Wages Expenses Advertising Expenses Mileage Expenses Repair Expenses Miscellaneous Expenses Total Expenses Net Income $ S S $ S 2.625.00 1,728.00 704.00 805.00 250.00 222 223 224 S S 6,112.00 19,547.00 225 226 227 228 229 230 Computer Solutions Statement of Owner's Equity For the three months ended October 31st E.Turnner's Capital Add: Net Income Less: Drawings Ending balance of E.Turnner's Capital 231 S S S S 73,000.00 19,547.00 (5,600.00) 86,947.00 232 233 234 Sheet1 Sheet2 Sheet3 IIII * Ready BO 100% U 10:38 16-09-2020 Type here to search 0x ENG D

Cla computer solutions - Microsoft Excel Home Insert Page Layout Formulas Data Review View Developer (?) X х Σ AutoSum και Times New Rom - 12 AA Wrap Text General Fill - * Cut EB Copy Paste Format Painter Clipboard BI U Merge & Center - % .00 .00 0 Insert Delete Format Conditional Format Cell Formatting as Table Styles Styles 2 Clear - Sort & Find & Filter - Select Editing Font E Alignment Number Cells 1231 foc A B с D E F G H 234 235 236 237 238 239 240 241 Computer Solutions Balance Sheet As At October 31st, 2015 Assets Cash Accounts Receivable Computer Supplies Prepaid Insurance Prepaid Rent Office Equipment Computer Equipment Total Assets Liabilities & Stockholder's equity Stockholder's Equity E.Turner's Capital Total Liabilities & Stockholder's Equity $ S S S S S S S 38,264.00 12.618.00 2.545.00 2.220.00 3,300.00 8,000.00 20,000.00 86.947.00 242 243 244 245 246 247 248 S S 86.947.00 86.947.00 249 250 251 252 253 254 255 C Sheet1 Sheet2 Sheet3 IIII Ready BO 100% + 10:39 Type here to search Px ENG D 16-09-2020