(Oct 1) Lopez invested $75,000 cash, a $25,000 computer system, and $10,000 of office equipment in the business in exchange for its common stock

(Oct 2) Paid $3,500 cash for four months’ rent

(Oct 3) Purchased $1,600 of computer supplies on credit from Corvina Office Products

(Oct 5) Received $2,400 cash in advance of providing two months’ installation services for Easy Leasing

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

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

(Oct 10) Paid Mileage Expense of $384 for the company vehicle

(Oct 12) Billed Easy Leasing another $1,950 for services performed

(Oct 15) Received $6,200 cash from Easy Leasing on its account

(Oct 17) Paid $900 cash to repair computer equipment that was damaged when moving it

(Oct 20) Paid $1,790 cash for an advertisement in the local newspaper

(Oct 22) Received $1,950 cash from Easy Leasing on its account

(Oct 28) Billed Clark Company $7,300 for services performed

(Oct 31) Paid $1,050 cash for Michelle Jones’ wages for seven days’ work

(Oct 31) Paid $4,000 cash for dividends

------------------------------------------------------

Adjusting Entries:

1.The October 31 inventory count of computer supplies shows $900 still available

2.As of October 31, Michelle Jones has not been paid for four days of work at $150 per day

3.The company’s computer is expected to have a five year life with $1,000 salvage value (compute 1 months’ worth of depreciation)

4.The office equipment is expected to have a four year life with $400 salvage value (compute 1 months’ worth of depreciation)

5. One of the four months’ prepaid rent has expired

6. One month of the installation services paid in advance on October 5 has now been provided and earned

7. Services were performed but not yet billed to Easy Leasing for $1,500

Requirements:

1.Set up General Ledger

2. Record the transactions in the General Journal

3. Post the journal entries in the General Ledger

4. Prepare an Unadjusted Trial Balance for the month of October

5. Journalize and Post the adjustments listed, Prepare an Adjusted Trial Balance

6. Prepare an Income Statement for the month of October

7. Prepare the Statement of Retained Earnings for the month of October

8. Prepare the Balance Sheet for the month of October

9. Journalize and Post the Closing Entries for October

10. Prepare a Post-Closing Trial Balance

Answer rating: 100% (QA)

Here are the general ledger accounts for the month of October Cash Beginning Balance 1819 Ending Balance 75220 Transactions Increase Net Cash Provided by Operating Activities 2401 Decrease Purchase of ... View the full answer