RaShawn McBride services computers and decided to open a business named McBride Computer Repair Shop. Listed...

 

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RaShawn McBride services computers and decided to open a business named "McBride Computer Repair Shop". Listed below are the transactions of his first month of operations. RaShawn McBride invested $75,000 in the business. Paid 3 months rent at the rate of $1,500/month. Purchased office equipment on account, $1,500. Purchased insurance for the year, $2,000. Purchased 2 computers for his business use, $5,000 cash. Established an account with a computer equipment supplier. Purchased computer repair equipment, $2,500 on account. Hired a computer technician and promised a biweekly salary of $2,000. Feb. 2 Feb. 2 Feb. 3 Feb. 3 Feb. 4 Feb. 5 Feb. 6 Feb. 9 Feb. 10 Provided services to a large company, on account $10,000. Provided services and collected $2,500. Purchased office supplies, $150 cash. Feb. 12 Feb. 13 Feb. 20 Feb. 23 Feb. 25 Feb. 26 Paid the technician, $2,000. Collected $10,000 from the previously billed customer. Withdrew $100 for personal use. Received utility bill, $50, due next month. Required: 1. Prepare general journal entries for the transactions stated above. 2. Post the transactions to the ledger accounts: Cash 111, Accounts Receivable - 112, Prepaid Rent - 113, Prepaid Insurance 114, Office Supplies - 115, Office Equipment - 116, Computer Repair Equipment 117, Computers - 118, Accounts Payable - 211, R. McBride, Capital - 311, R. McBride, Withdrawals - 312, Service Revenue - 411, Salaries Expense - 511, Utilities Expense - 512. 3. Prepare a trial balance. 4. Prepare an Income Statement, a Statement of Owner's Equity and a Balance Sheet. Problem 2-2 Anthony Gross opened a home remodeling business. The following list of business occurrences took place: RaShawn McBride services computers and decided to open a business named "McBride Computer Repair Shop". Listed below are the transactions of his first month of operations. RaShawn McBride invested $75,000 in the business. Paid 3 months rent at the rate of $1,500/month. Purchased office equipment on account, $1,500. Purchased insurance for the year, $2,000. Purchased 2 computers for his business use, $5,000 cash. Established an account with a computer equipment supplier. Purchased computer repair equipment, $2,500 on account. Hired a computer technician and promised a biweekly salary of $2,000. Feb. 2 Feb. 2 Feb. 3 Feb. 3 Feb. 4 Feb. 5 Feb. 6 Feb. 9 Feb. 10 Provided services to a large company, on account $10,000. Provided services and collected $2,500. Purchased office supplies, $150 cash. Feb. 12 Feb. 13 Feb. 20 Feb. 23 Feb. 25 Feb. 26 Paid the technician, $2,000. Collected $10,000 from the previously billed customer. Withdrew $100 for personal use. Received utility bill, $50, due next month. Required: 1. Prepare general journal entries for the transactions stated above. 2. Post the transactions to the ledger accounts: Cash 111, Accounts Receivable - 112, Prepaid Rent - 113, Prepaid Insurance 114, Office Supplies - 115, Office Equipment - 116, Computer Repair Equipment 117, Computers - 118, Accounts Payable - 211, R. McBride, Capital - 311, R. McBride, Withdrawals - 312, Service Revenue - 411, Salaries Expense - 511, Utilities Expense - 512. 3. Prepare a trial balance. 4. Prepare an Income Statement, a Statement of Owner's Equity and a Balance Sheet. Problem 2-2 Anthony Gross opened a home remodeling business. The following list of business occurrences took place: