On October 1, 2007, Adriana Lopez started a computer services company, Success Systems, that provides consulting services,

Question:

On October 1, 2007, Adriana Lopez started a computer services company, Success Systems, that provides consulting services, computer system installations, and custom program development. Lopez expects to prepare the company’s first set of financial statements on December 31, 2007.

Required Create a table like the one in Exhibit 2.1 using the following headings for columns: Cash; Accounts Receivable; Computer Supplies; Computer System; Office Equipment; Accounts Payable; A. Lopez, Capital; A. Lopez, Withdrawals; Revenues; and Expenses. Then use additions and subtractions to show the effects of the October transactions for Success Systems on the individual items of the accounting equation. Show new balances after each transaction.

Oct.

1 Adriana Lopez invested $$75,000$ cash, a $$25,000$ computer system, and $$10,000$ of office equipment in the business.

3. Purchased $$1,600$ of computer supplies on credit from Corvina Office Products.

6 Billed Easy Leasing $$6,200$ for services performed in installing a new Web server.

8 Paid $$1,600$ cash for the computer supplies purchased from Corvina Office Products on October 3.

10 Hired Michelle Jones as a part-time assistant for $$150$ per day, as needed.
12 Billed Easy Leasing another $$1,950$ for services performed.
15 Received $$6,200$ cash from Easy Leasing toward its account.
17 Paid $$900$ cash to repair computer equipment damaged when moving it.
20 Paid $$1,790$ cash for an advertisement in the local newspaper.
22 Received $$1,950$ cash from Easy Leasing toward its account.
28 Billed Clark Company $$7,300$ for services performed.
31 Paid $$1,050$ cash for Michelle Jones’s wages for seven days of work this month.
31 Lopez withdrew $$4,000$ cash for personal use.

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