Question

how to this form

Account Number Account Name 101 Cash 106 Accounts Receivable 126 Computer Supplies Prepaid Insurance 131 Prepaid Rent 163 Office Equipment 167 Computer Equipment 201 Accounts Payable 128 Account Number Account Name 301 Aster Turane, Capital 302 Aster Turane, Withdrawals 403 Computer Services Revenue 623 Wages Expense 655 Advertising Expense 676 Mileage Expense 684 Repairs Expense, Computer 699 Charitable Donations Expense Part A Required 1. Set up balance column accounts based on the chart of accounts provided. 2. Prepare journal entries to record each of the following October transactions. 3. Post the October entries. 4. Prepare a trial balance at October 31, 2020. 5. Prepare an income statement and a statement of changes in equity for the month ended October 31, 2020, as well as a balance sheet at October 31, 2020. Oct. 1 Aster Turane invested $32,000 cash, a $5,040 computer system, and $12,000 of office equipment in the business. 2 Paid six months of rent in advance; $9,300. 3 Purchased computer supplies on credit for $1,975 from Triple-One Supplies. 5 Paid $8,640 cash for one year's premium on a property and liability insurance policy. 6 Billed Norton Electric $3,300 for installing a new computer system. 8 Paid for the computer supplies purchased from Triple-One Supplies. 10 Hired Donald Gee as a part-time assistant for $345 per day, as needed. 12 Billed Norton Electric another $1,850 for computer services rendered. 15 Received $1,650 from Norton Electric on its account 17 Paid $375 to repair equipment damaged when moving into the new office. 20 Paid $1,950 for an advertisement in the local newspaper. 22 Received the balance owing from Norton Electric on its account. 28 Billed Whistler Resort $6,400 for services. 31 Paid Donald Gee for nine days' work. 31 Aster Turane withdrew $1.200 cash from the business for personal use.

Answer 1

1. Journal Entries -

Aster Systems Journal Entries Date Accounts Title Debit Credit Oct 1 Cash $ 32,000 Computer Equipment $ 5,040 Office Equipment $ 12,000 Aster Turane, Capital $ 49,040 (Being Capital introduced, Capital equipment and office equipment introduced) Oct 2 Prepaid Rent $ 9,300 Cash (Being Rent paid in advance for 6 months) $ 9,300 Oct 3 Computer Supplies $ 1,975 Accounts Payable (Being Computer supplies purchased) $ 1,975 Oct 5 Prepaid Insurance $ 8,640 Cash (Being one year insurance premium paid) $ 8,640 Oct 6 Accounts Receivable $ 3,300 Computer Service Revenue (Being revenue booked for the service provided) $ 3,300 Oct 8 $ 1,975 Accounts Payable Cash (Being creditors paid) $ 1,975 Oct 10 No Entry Oct 12 Accounts Receivable $ 1,850 Computer Service Revenue (Being revenue booked for the service provided) $ 1,850 Oct 15 Cash $ 1,650 Accounts Receivable (Being cash received against previously billed) $ 1,650 Oct 17 375 Repair Expense - Computer $ Cash (Being repair expenses paid) $ 375 Oct 20 Advertising Expense $ 1,950 Cash (Being advertising expenses paid) $ 1,950 Oct 22 Cash $ 3,500 Accounts Receivable (Being cash received against balance receivable) $ 3,500 Oct 28 Accounts Receivable $ 6,400 Service Revenue (Being revenue booked for the service provided) $ 6,400 Oct 31 Wages Expense $ 3,105 Cash (Being wages paid for 9 days of $ 345) $ 3,105 Oct 31 $ 1,200 Aster Turane, Withdrawals Cash $ 1,200

2. Ledgers -

Date Date Accounts Payable Debit Date $ 1,975 Oct 3 Credit $ 1,975 Oct 8 Oct 1 Oct 15 Cash Debit Date $ 32,000 Oct 2 $ 1,650 Oct 5 $ 3,500 Oct 8 Oct 17 Oct 22 Credit $ 9,300 $ 8,640 $ 1,975 $ 375 $ 1,950 $ 3,105 $ 1,200 $ 1,975 $ 1,975 Oct 20 Oct 31 Oct 31 Aster Turane, Capital Date Debit Date Oct 1 Balance $ 49,040 Credit $ 49,040 Balance $10,605 $ 37,150 $ 37,150 $ 49,040 $ 49,040 Date Oct 6 Accounts Receivable Debit Date Credit $ 3,300 Oct 15 $ 1,650 $ 1,850 Oct 22 $ 3,500 $ 6,400 Balance $ 6,400 Aster Turane, Withdrawals Date Debit Date Credit Oct 31 $ 1,200 Balance $ 1,200 Oct 12 Oct 28 $ 1,200 $ 1,200 $ 11,550 $ 11,550 Date Oct 3 Computer Supplies Debit Date Credit $ 1,975 Balance $ 1,975 Computer Service Revenue Date Debit Date Credit Oct 6 $ 3,300 Oct 12 $ 1,850 $ 11,550 Oct 28 $ 6,400 $ 1,975 $ 1,975 $ 11,550 $ 11,550 Prepaid Insurance Debit Date Date Credit Date Wages Expense Debit Date $ 3,105 Credit Oct 5 $ 8,640 Oct 31 Balance $ 8,640 $ 3,105 $ 8,640 $ 8,640 $ 3,105 $ 3,105 Date Oct 2 Credit Prepaid Rent Debit Date Credit $ 9,300 Balance $ 9,300 Advertising Expense Debit Date $ 1,950 Date Oct 20 $ 1,950 $ 9,300 $ 9,300 $ 1,950 $ 1,950 Date Oct 1 Office equipment Debit Date Credit $ 12,000 Balance $ 12,000 Repair Expense - Computer Date Debit Date Credit Oct 17 $ 375 $ 375 $ 12,000 $ 12,000 $ 375 $ 375 Date Computer Equipment Debit Date Credit $ 5,040 Balance $ 5,040 Oct 1 $ 5,040 $ 5,040

3. Income Statements -

Aster Systems Income Statement For the Period October 31, 2020 Computer services revenue $ 11,550 Expenses: Wages Expense Advertising Expense Repair Expense - Computer Total Expenses $ 3,105 $ 1,950 $ 375 $ 5,430 Net Income $ 6,120

4. Statement of Change in Equity -

Aster Systems Statement of Change in Equity For the Period October 31, 2020 Aster Turane, Capital (+) Net Income (-) Drawings Total Change in Equity $ 49,040 $ 6,120 $ (1,200) $ 53,960

5. Balance Sheet -

Aster Systems Balance Sheet As at October 31, 2020 Assets Current Assets Cash Accounts Receivable Computer Supplies Prepaid Insurance Prepaid Rent Total Current Assets $ 10,605 $ 6,400 $ 1,975 $ 8,640 $ 9,300 $36,920 Non Current Assets Office equipment $ 12,000 Accumulated depreciation - Office Equipment $ Computer Equipment $ 5,040 Accumulated depreciation - Computer Equipment $ $ 12,000 $ 5,040 Total Assets $ 53,960 Liabilities and Owner's Equity Current Liabilities Accounts Payable $ Total Current Liabilities Total Liabilities $ Owner's Equity Aster Turane, Capital (+) Net Income (-) Drawings Total Owner's Equity $ 49,040 $ 6,120 $ (1,200) $ 53,960 Total Liabilities and Stockholder's Equity $ 53,960

6. Trial Balance -

Aster Systems Adjusted Trial Balance For the Period October 31, 2020 Cash $ 10,605 Accounts Receivable $ 6,400 Computer Supplies $ 1,975 Prepaid Insurance $ 8,640 Prepaid Rent $ 9,300 Office equipment $ 12,000 Computer Equipment $ 5,040 Accounts Payable $ Aster Turane, Capital $ 49,040 Aster Turane, Withdrawals $ 1,200 Computer Service Revenue $ 11,550 Wages Expense $ 3,105 Advertising Expense $ 1,950 Repair Expense - Computer $ 375 Total $ 60,590 $ 60,590