129 X A B C D E F | H CUMULATIVE PROBLEM - Aster Systems K M N 2 3 This comprehensive problem was introduced in Chapter 2 and continues in Chapters 4 and 5. If the Required Chapter 2 segment has not been completed, the assignment can begin at this point. 1 Prepare journal entries to record each of the following transactions for Aster Systems Post the entries to the accounts in the ledger. After the success of its first two months, Aster Turane has decided to continue operating entries to the accounts in the ledger Aster Systems. (The transactions that occurred in these months are described in Chapter 2) advertising costs for December 8 Before proceeding in December, Turane adds these new accounts to the chart of accounts for 3 Paid $1,040 to repair the company's computer 9 the ledger. 4 Received the balance owing from Kinsetta Groceries 10 10 Paid Donald Gee for eight days' work at the rate of $345 per day 11 Account No. 12 Accumulated Depreciation, Office Equipment 164 + 14 Notified by Kinsetta Groceries that Aster's bid of $6,500 on a proposed project was accepted. Kinsella paid an advance of $3,000 13 Accumulated Depreciation, Computer Equipment 168 17 Purchased $740 of computer supplies on credit from Triple-One 14 Wages Payable 210 Supplies 15 Unearned Computer Services Revenue 236 18 Sent a reminder to Dinwoody Entertainment to pay the $4,230 originally 16 Depreciation Expense, Office Equipment 612 recorded on November 8 17 Depreciation Expense, Computer Equipment 613 20 Completed a project for Langara Lodge and received $1.100 cash 18 Insurance Expense 637 24-28 Took the week off for the holidays. 19 Rent Expense 640 31 Received $1,800 as partial payment from Dinwoody Entertainment 20 Computer Supplies Expense 652 31 Reimbursed Aster Turane's business automobile expenses of 1,800 kilometres at $1 60 per kilometre 21 31 Aster Turane withdrew $800 cash from the business 22 23 V1 AsterSystems_Ch3_Question Ready Accessibility: Good to go ENGB D E F H 52 K L M IN P 53 2. Prepare adjusting entries to record the following additional information collected on The transactions of Aster Systems for October through December 2020 have been recorded in the 54 December 31, 2020. Post the entries to the accounts in the ledger problem segments in Chapters 2 and 3, as well as the year-end adjusting entries Prior to closing 55 the revenue and expense accounts for 2020, the accounting system is modified to include the 56 Dec. 31 a The December 31 inventory of computer supplies was $480 Income Summary account, which is given the number 901. 57 b. Three months have passed since the annual insurance premium was paid 58 c. As of the end of the year, Donald Gee has not been paid for four days of Required 59 work at the rate of $345 per day. 1. Record and post the appropriate closing entries. d. The computer equipment is expected to have a five-year life with no 2 Prepare a post-closing trial balance. residual value. 62 e. The office equipment is expected to have a ten-year life with no (Curl) - 63 residual value 64 f. Prepaid rent for three of the six months has expired 65 66 3. Prepare an adjusted trial balance as of December 31, 2020. 67 4. Prepare an income statement and statement of changes in equity for the three 68 months ended December 31, 2020. 69 5. Prepare a balance sheet as of December 31, 2020 70 71 72 73 74 75 V1 AsterSystems_Ch3 Question Select destination and press ENTER or choose PasteB C D E F G H K On October 1, 2020, Aster Turane organized a computer service company called Aster Oct. 1 Aster Turane invested $32,000 cash, a $5,040 computer system, and 6 Systems. Aster is organized as a sole proprietorship and will provide consulting services, computer $12,000 of office equipment in the business. 7 system installations, and custom program development. Aster Systems has adopted the calendar year 2 Paid six months of rent in advance; $9,300. 8 for reporting, and expects to prepare the company's first set of financial statements as of 3 Purchased computer supplies on credit for $1,975 from Triple-One Supplies. 9 December 31, 2020. The initial chart of accounts for the accounting system includes these items. 5 Paid $8,640 cash for one year's premium on a property and liability insurance 10 policy 11 Number Account Name Number Account Name 6 Billed Norton Electric $3,300 for installing a new computer system. 12 101 Cash 301 Aster Turane, Capital 8 Paid for the computer supplies purchased from Triple-One Supplies 13 106 Accounts Receivable 302 Aster Turane, Withdrawals 10 Hired Donald Gee as a part-time assistant for $345 per day, as needed 14 126 Computer Supplies 403 Computer Services Revenue 12 Billed Norton Electric another $1,850 for computer services rendered 15 128 Prepaid Insurance 623 Wages Expense 15 Received $1,650 from Norton Electric on its account. 16 131 Prepaid Rent 655 Advertising Expense 17 Paid $375 to repair equipment damaged when moving into the 17 163 Office Equipment 676 Mileage Expense new office. 18 167 Computer Equipment 684 Repairs Expense, Computer 20 Paid $1,950 for an advertisement in the local newspaper 19 201 Accounts Payable 699 Charitable Donations Expense 22 Received the balance owing from Norton Electric on its account. 20 28 Billed Whistler Resort $6,400 for services. 21 Part A 31 Paid Donald Gee for nine days' work. 22 Required 31 Aster Turane withdrew $1,200 cash from the business for personal use 23 1. Set up balance column accounts based on the chart of accounts provided. (Ctrl) - 24 2. Prepare journal entries to record each of the following October transactions. 25 3. Post the October entries. 26 4. Prepare a trial balance at October 31, 2020. 27 5. Prepare an income statement and a statement of changes in equity for the month ended 28 October 31, 2020, as well as a balance sheet at October 31, 2020. 29 V1 AsterSystem Ch2 Select destination and press ENTER or choose Paste