The transactions of Echo Systems for October through December 2017 have been recorded in the problem segments in Chapters 2 and 3, as well as the year-end adjusting entries. Prior to closing the temporary accounts for 2017, the accounting system is modified to include the Income Summary account, which is given the number 901.

Required
1. Record and post the appropriate closing entries. 

2. Prepare a post-closing trial balance.

On October 1, 2017, Mary Graham organized a computer service company called Echo Systems. Echo is organized as a sole proprietorship and will provide consulting services, computer system installations, and custom program development. Graham has adopted the calendar year for reporting, and expects to prepare the company€™s first set of financial statements as of December 31, 2017. The initial chart of ac- counts for the accounting system includes these items:

Oct.    

1. Graham invested $90,000 cash, a $36,000 computer system, and $18,000 of office equipment in the business. 

2. Paid rent in advance of $9,000. 

3. Purchased computer supplies on credit for $2,640 from Abbott Office Products. 

5. Paid $4,320 cash for one year€™s premium on a property and liability insurance policy.
6. Billed Capital Leasing $6,600 for installing a new computer.
8. Paid for the computer supplies purchased from Abbott Office Products. 

10. Hired Carly Smith as a part-time assistant for $200 per day, as needed. 

12. Billed Capital Leasing another $2,400 for computer services rendered. 

15. Received $6,600 from Capital Leasing on its account. 

17. Paid $1,410 to repair computer equipment damaged when moving into the new office. 

20. Paid $3,720 for an advertisement in the local newspaper. 

22. Received $2,400 from Capital Leasing on its account. 

28. Billed Decker Company $6,450 for services. 

31. Paid Carly Smith for seven days€™ work. 

31. Withdrew $7,200 cash from the business for personal use.

Nov
1.  Reimbursed Graham€™s business automobile expense for 1,000 kilo metres at $1.00 per kilo metre. 

2. Received $9,300 cash from Elite Corporation for computer services rendered. 

5. Purchased $1,920 of computer supplies for cash from Abbott Office Products. 

8. Billed Fostek Co. $8,700 for computer services rendered.
13. Notified by Alamo Engineering Co. that Echo€™s bid of $7,500 for an upcoming project was accepted. 

18. Received $3,750 from Decker Company against the bill dated October 28. 

22. Donated $1,500 to the United Way in the company€™s name. 

24. Completed work for Alamo Engineering Co. and sent a bill for $7,500.
25. Sent another bill to Decker Company for the past due amount of $2,700. 

28. Reimbursed Graham€™s business automobile expense for 1,200 kilo metres at $1.00 per kilo metre. 

30. Paid Carly Smith for 14 days€™ work. 

30. Withdrew $3,600 cash from the business for personal use.

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Account Number Account Number Account Name Account Name Mary Graham, Capital Mary Graham, Withdrawals Computer Services Revenue Wages Expense Advertising Expense Mileage Expense Repairs Expense, Computer Charitable Donations Expense Cash Accounts Receivable Computer Supplies 101 106 126 128 131 163 301 302 403 623 Prepaid Insurance Prepaid Rent Office Equipment Computer Equipment Accounts Payable 655 676 167 684 201 699