On Dec 1, 2017, Daniel Nica organized a computer service company called Smart Technology
Systems. Smart Technology is organized as a sole proprietorship and will provide consulting services, computer
system installations and custom program development. Smart Technology Systems 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 accounts for the accounting system includes these items:
Account Number	Account Name	Account Number	Account Name
101	Cash	403	Computer Services Revenue
106	Accounts Receivable	623	Subcontractor Expense
126	Computer Supplies	655	Advertising Expense
131	Prepaid Rent	676	Mileage Expense
163	Office Equipment	681	Rent Expense
167	Computer Equipment	684	Repairs Expense
201	Accounts Payable
301	Daniel Nica, Capital

Required
1. Prepare journal entries to record each of the following December transactions. 2. Post the December entries to the ledgers. 3. Prepare a trial balance at Dec 31, 2017. 4. Prepare an income statement and a statement of changes in equity for the month ended Dec 31, 2014, 5. Prepare a balance sheet at Dec 31, 2017.
Dec. 1	Daniel Nica invested $82,000 cash, a $7,000 computer equipment, and
	$11,000 of office equipment in the business.
2	Paid three months of rent in cash in advance; $9,000.
3	Purchased computer supplies on credit for $2,000 from Compute depot Supplies.
6	Billed Maher Electric $9,300 for installing a new computer system.
7	Reimbursed Daniel Nica's business automobile expense for 1,000
	kilometres at $1.80 per kilometre.
12	Billed Maher Electric another $27,000 for computer services rendered.
15	Received $6,300 from Maher Electric on its account.
17	Paid $400 in cash to repair equipment damaged when moving into the
	new office.
20	Paid $1,500 in cash for an advertisement in the local newspaper.
22	Received the balance owing from Maher Electric on its account.
28	Billed Five Acre Resort $4,600 for services.
31	Paid subcontractor Leagh O'keefe for five days' work; total amount $2,000