On October 1, 2021, Santana Rey launched a computer services company called Business Solutions, which provides...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On October 1, 2021, 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. Account Cash Number 101 Account Number Common stock 307 Accounts Receivable 106 Dividends 319 Computer Supplies 126 Computer Services Revenue 403 Prepaid Insurance 128 Wages Expense 623 Prepaid Rent Office Equipment Computer Equipment 131 Advertising Expense 655 163 Mileage Expense 676 167 Miscellaneous Expenses 677 Accounts Payable 201 Repairs Expense-Computer 684 October 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. October 2 The company paid $3,280 cash for four months' rent. Hint: Debit Prepaid Rent for $3,280. October 3 The company purchased $1,320 of computer supplies on credit from Harris Office Products. October 5 The company paid $1,740 cash for one year's premium on a property and liability insurance policy. Hint: Debit Prepaid Insurance for $1,740. October 6 The company billed Easy Leasing $5,000 for services performed in installing a new Web server. October 8 The company paid $1,320 cash for the computer supplies purchased from Harris Office Products on October 3. October 10 The company hired Lyn Addie as a part-time assistant. October 12 The company billed Easy Leasing another $2,000 for services performed. October 15 The company received $5,000 cash from Easy Leasing as partial payment on its account. October 17 The company paid $795 cash to repair computer equipment that was damaged when moving it. October 20 The company paid $1,698 cash for advertisements. October 22 The company received $2,000 cash from Easy Leasing on its account. October 28 The company billed IFM Company $5,908 for services performed. October 31 The company paid $770 cash for Lyn Addie's wages for seven days' work. October 31 The company paid a $2,800 cash dividend. November 1 The company paid $240 cash for mileage expenses. November 2 The company received $4,833 cash from Liu Corporation for computer services performed. November 5 The company purchased computer supplies for $1,075 cash from Harris Office Products. November 8 The company billed Gomez Company $5,868 for services performed. November 13 The company agreed to perform future services for Alex's Engineering Company. No work has yet been performed. November 18 The company received $3,208 cash from IFM Company as partial payment of the October 28 bill. November 22 The company paid $250 cash for miscellaneous expenses. Hint: Debit Miscellaneous Expenses for $250. November 24 The company completed work and sent a bill for $4,350 to Alex's Engineering Company. November 25 The company sent another bill to IFM Company for the past-due amount of $2,700. November 28 The company paid $288 cash for mileage expenses. November 30 The company paid $1,540 cash for Lyn Addie's wages for 14 days' work. November 30 The company paid a $1,400 cash dividend. Required: 1. Prepare journal entries to record each of the above transactions for Business Solutions. 2. Prepare ledger accounts (in balance column format) and post the journal entries from requirement 1 to them. 3. Prepare a trial balance as of the end of November. On October 1, 2021, 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. Account Cash Number 101 Account Number Common stock 307 Accounts Receivable 106 Dividends 319 Computer Supplies 126 Computer Services Revenue 403 Prepaid Insurance 128 Wages Expense 623 Prepaid Rent Office Equipment Computer Equipment 131 Advertising Expense 655 163 Mileage Expense 676 167 Miscellaneous Expenses 677 Accounts Payable 201 Repairs Expense-Computer 684 October 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. October 2 The company paid $3,280 cash for four months' rent. Hint: Debit Prepaid Rent for $3,280. October 3 The company purchased $1,320 of computer supplies on credit from Harris Office Products. October 5 The company paid $1,740 cash for one year's premium on a property and liability insurance policy. Hint: Debit Prepaid Insurance for $1,740. October 6 The company billed Easy Leasing $5,000 for services performed in installing a new Web server. October 8 The company paid $1,320 cash for the computer supplies purchased from Harris Office Products on October 3. October 10 The company hired Lyn Addie as a part-time assistant. October 12 The company billed Easy Leasing another $2,000 for services performed. October 15 The company received $5,000 cash from Easy Leasing as partial payment on its account. October 17 The company paid $795 cash to repair computer equipment that was damaged when moving it. October 20 The company paid $1,698 cash for advertisements. October 22 The company received $2,000 cash from Easy Leasing on its account. October 28 The company billed IFM Company $5,908 for services performed. October 31 The company paid $770 cash for Lyn Addie's wages for seven days' work. October 31 The company paid a $2,800 cash dividend. November 1 The company paid $240 cash for mileage expenses. November 2 The company received $4,833 cash from Liu Corporation for computer services performed. November 5 The company purchased computer supplies for $1,075 cash from Harris Office Products. November 8 The company billed Gomez Company $5,868 for services performed. November 13 The company agreed to perform future services for Alex's Engineering Company. No work has yet been performed. November 18 The company received $3,208 cash from IFM Company as partial payment of the October 28 bill. November 22 The company paid $250 cash for miscellaneous expenses. Hint: Debit Miscellaneous Expenses for $250. November 24 The company completed work and sent a bill for $4,350 to Alex's Engineering Company. November 25 The company sent another bill to IFM Company for the past-due amount of $2,700. November 28 The company paid $288 cash for mileage expenses. November 30 The company paid $1,540 cash for Lyn Addie's wages for 14 days' work. November 30 The company paid a $1,400 cash dividend. Required: 1. Prepare journal entries to record each of the above transactions for Business Solutions. 2. Prepare ledger accounts (in balance column format) and post the journal entries from requirement 1 to them. 3. Prepare a trial balance as of the end of November.
Expert Answer:
Answer rating: 100% (QA)
Journal Entries October 1 Cash 101 49000 Computer Equipment 167 26000 Office Equipment 163 9000 Common Stock 307 84000 October 2 Prepaid Rent 131 3280 ... View the full answer
Related Book For
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
Posted Date:
Students also viewed these accounting questions
-
Comparative income statements of Sub Corporation for the calendar years 2019, 2020, and 2021 are as follows (in thousands): 2019 2020 2021 Sales $22,000 $18,500 $19,250 Cost of sales 10,600 9,900...
-
8. How does Warren Buffett define risk in investing? A. Volatility in stock prices B. Permanent loss of capital C. Market timing D. Diversification 9. What is the annual salary Warren Buffett pays...
-
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...
-
Rewrite the following sentences to reflect your audiences viewpoint. 1. We request that you include the order number with your inquiry. 2. We insist that you always bring your credit card to the...
-
What are the objectives related to the audit of taxes?
-
Refer to this and write on what you have understood and any suggestions to give. www.delawareonline.com/story/news/2017/01/27/scope-medical-data-breaches-unknown-delaware/96493240/
-
Barrila Enterprises uses a word processing computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hours per night, plus ever} third Saturday, to keep up...
-
1. From a strategic standpoint, what are the arguments against uncontrolled information technology in the workplace? 2. What is your personal stance on Technology Populism? What are the implications...
-
Question 7 (10 points) A metal sphere is placed in seawater to study the corrosive effect of seawater. If the surface area decreases at 35 cm/year due to corrosion, how fast is the radius changing...
-
Following are partially completed financial statements (income statement, statement of retained earnings, and balance sheet) for Shaker Corporation. Complete the financial statements. All amounts are...
-
What are some of the typical changes in the adolescent-parent relationship from early to later adolescence? What are the cultural expectations about the level of autonomy that should be achieved...
-
Fill in the Blank. __________ principle is not applicable in nonlinear analysis.
-
Fill in the Blank. When finite amplitudes of motion are involved, __________ analysis becomes necessary.
-
Fill in the Blank. The velocity with which a representative point moves along a trajectory is called the ___________ velocity.
-
Fill in the Blank. The representation of the motion of a system in the displacement-velocity plane is known as ___________ plane representation.
-
Fill in the Blank. The curve traced by a typical point in the phase plane is called \(\mathrm{a}(\mathrm{n})\) _____________ .
-
b. We get the following results when we regresb. We get the following results when we regress life expectancy on GDP per capita. Sketch life expectancy as a function of GDP per capita. Be sure to...
-
Use this circle graph to answer following Exercises. 1. What fraction of areas maintained by the National Park Service are designated as National Recreation Areas? 2. What fraction of areas...
-
How many months does it take to save $200,000.00 based on the information provided in this problem?---
-
What is the amount oi the credit to employee city income tax payable?
-
Milat is the total yearly gross pay for all employees?
Study smarter with the SolutionInn App