On October 1, 2017, Steven Smith launched a computer services company called TechnoSmith, which provides consulting services, computer system installations, and custom program development. Smith adopts the calendar year for reporting purposes and expects to prepare the companys first set of financial statements on December 31, 2017.

Using the following transactions, record journal entries, create financial statements, and assess the impact of each transaction on the financial statements.

Oct.		1		S. Smith invested $48,000 cash, a $20,100 computer system, and $10,000 of office equipment in the company in exchange for its common stock.
Oct.		2		The company paid $3,600 cash for four months rent. (The company's policy is to record prepaid expenses in balance sheet accounts.)
Oct.		3		The company purchased $1,600 of computer supplies on credit from Masters Office Products.
Oct.		5		The company paid $2,400 cash for one years premium on a property and liability insurance policy. (The company's policy is to record prepaid expenses in balance sheet accounts.)
Oct.		6		The company billed Porter Leasing $4,900 for services performed in installing a new web server.
Oct.		8		The company paid $1,600 cash for the computer supplies purchased from Masters Office Products on October 3.
Oct.		10		The company hired Grace Smith as a part-time assistant for $150 per day, as needed.
Oct.		12		The company billed Porter Leasing another $1,600 for services performed.
Oct.		15		The company received $4,900 cash from Porter Leasing as partial payment on its account.
Oct.		17		The company paid $1,000 cash to repair computer equipment that was damaged when moving it.
Oct.		20		The company paid $1,900 cash for advertisements published in the local newspaper.
Oct.		22		The company received $1,600 cash from Porter Leasing on its account.
Oct.		28		The company billed ABC Company $5,400 for services performed.
Oct.		31		The company paid $1,050 cash for Grace Smiths wages for seven days work.
Oct.		31		The company paid $5,000 cash in dividends.
Nov.		1		The company reimbursed S. Smith in cash for business automobile mileage allowance (Smith logged 1,000 miles at $0.32 per mile).
Nov.		2		The company received $4,800 cash from Hayes Corporation for computer services performed.
Nov.		5		The company purchased computer supplies for $1,200 cash from Masters Office Products.
Nov.		8		The company billed Kuhl Co. $2,200 for services performed.
Nov.		13		The company received notification from Kennedy Engineering Co. that TechnoSmiths bid of $4,050 for an upcoming project was accepted.
Nov.		18		The company received $3,200 cash from ABC Company as partial payment of the October 28 bill.
Nov.		22		The company donated $300 cash to the United Way in the companys name.
Nov.		24		The company completed work and sent a bill for $4,200 to Kennedy Engineering Co.
Nov.		25		The company sent another bill to ABC Company for the past-due amount of $2,200.
Nov.		28		The company reimbursed S. Smith in cash for business automobile mileage (1,200 miles at $0.32 per mile).
Nov.		30		The company paid $2,100 cash for Grace Smiths wages for 14 days work.
Nov.		30		The company paid $2,800 cash in dividends.

Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on Equity General Journal Tab - For each transaction, prepare the required journal entry on the General Journal tab. List debits before credits. Each journal entry is automatically posted to the General Ledger. General Ledger Tab - To see the detail of all transactions that affect a specific account, or the balance in an account at a specific point in time, click on the General Ledger tab. Abnormal balances appear in parentheses. Click on any amount to see the underlying journal entry. Trial Balance Tab - A trial balance lists each account from the General Ledger, along with its balance, either a debit or a credit. Total debits should always equal total credits. If your trial balance doesn't balance, review your journal entries on the general journal tab. Income Statement Tab - Using the dropdown buttons, select the financial statement elements and account titles to be included on the income statement. The account balances will automatically populate. Statement of Retained earnings Tab - Using the dropdown buttons, select the item that accurately describes the values that either increase or decrease the owner's capital balance. Balance Sheet Tab - Using the dropdown buttons, select the financial statement elements and account titles to be included on the balance sheet. The account balances will automatically populate. Impact on Equity Tab - Using the dropdown buttons, indicate the impact each item has on total equity. Compare the total with the amount of equity reported on the balance sheet. Every journal entry must keep the accounting equation in balance. Prepare the journal entries for each of the transactions of TechnoSmith, entering the debits before the credits. Each transaction will automatically be posted to the General Ledger and the Trial Balance as soon as you click "Record Entry". If no journal entry is required, select "No journal entry required" in the first account field. Show less View transaction list View journal entry worksheet No Date Account Title Debit Credit 1 Oct 01 Cash Computer equipment Office equipment 48,000 20,100 10,000 Common stock 78,100 2 Oct 02 Prepaid rent 3,600 Cash 3,600 3 Oct 03 1,600 Computer supplies Accounts pavable 1.600 TECHNOSMITH Trial Balance November 30, 2018 Account Title Debit Credit Cash $ Accounts receivable 34,646 8,600 2,800 2,400 Computer supplies Prepaid insurance Prepaid rent Office equipment Computer equipment Common stock 3,600 10,000 20,100 78,100 Dividends 7,800 Computer services revenue 18,900 3,150 1,900 Wages expense Advertising expense Mileage expense Miscellaneous expenses 704 300 Donaire avnanca Comnutar 1 nnn TECHNOSMITH Statement of Retained Earnings For Two Months Ended November 30, 2018 Retained earnings, October 1, 2018 Add: Net income 11,846 11,846 11,846 Less: Dividends 7,800 7,800 4,046 Retained earnings, November 30, 2018 $ TECHNOSMITH Balance Sheet November 30, 2018 Assets: Cash Accounts receivable 34,646 8,600 2,800 2,400 Computer supplies Prepaid insurance Office equipment Prepaid rent Computer equipment 10,000 3,600 20,100 Total Assets $ 82,146 Liabilities: Accounts payable Total liabilities stelbeldama amit 78,100 0 0 Transaction Impact on Equity Oct. 1) S. Smith invested $48,000 cash, a $20,100 computer system, and $10,000 of office equipment in the company in Increased equity - Stockholder investment exchange for its common stock. Oct. 2) The company paid $3,600 cash for four months' rent. (The company's policy is to record prepaid expenses in balance No change in equity sheet accounts.) Oct. 3) The company purchased $1,600 of computer supplies No change in equity on credit from Masters Office Products. Oct. 5) The company paid $2,400 cash for one year's premium on a property and liability insurance policy. (The company's No change in equity policy is to record prepaid expenses in balance sheet accounts.) Oct. 6) The company billed Porter Leasing $4,900 for services Increased equity - Revenue performed in installing a new web server. Oct. 8) The company paid $1,600 cash for the computer No change in equity supplies purchased from Masters Office Products on October 3. O 4,900 0 0 1,600 Oct. 10) The company hired Grace Smith as a part-time No change in equity assistant for $150 per day, as needed. Oct. 12) The company billed Porter Leasing another $1,600 for services performed. Increased equity - Revenue Oct. 15) The company received $4,900 cash from Porter No change in equity Leasing as partial payment on its account. Oct. 17) The company paid $1,000 cash to repair computer Decreased equity - Expense equipment that was damaged when moving it. 0 $ (1,000) $ (1,000) (1,900) 0 5,400 0 (5,000) Oct. 17) The company paid $1,000 cash to repair computer Decreased equity - Expense equipment that was damaged when moving it. Oct. 20) The company paid $1,900 cash for advertisements Decreased equity - Expense published in the local newspaper. Oct. 22) The company received $1,600 cash from Porter No change in equity Leasing on its account. Oct. 28) The company billed ABC Company $5,400 for services performed. Increased equity - Revenue Oct. 31) The company paid $1,050 cash for Grace Smith's No change in equity wages for seven days' work. Oct. 31) The company paid $5,000 cash in dividends. Decreased equity - Dividends Nov. 1) The company reimbursed S. Smith in cash for business automobile mileage allowance (Smith logged 1,000 miles at No change in equity $0.32 per mile). Nov. 2) The company received $4,800 cash from Hayes Increased equity - Revenue Corporation for computer services performed. Nov. 5) The company purchased computer supplies for $1,200 No change in equity cash from Masters Office Products. Nov. 8) The company billed Kuhl Co. $2,200 for services Increased equity - Revenue performed Nov. 13) The company received notification from Kennedy Engineering Co. that TechnoSmith's bid of $4,050 for an No change in equity upcoming project was accepted. Nov. 18) The company received $3,200 cash from ABC No change in equity Company as partial payment of the October 28 bill. 0 4,800 0 2,200 0 0 No change in equity 0 No change in equity 0 No change in equity 0 Nov. 13) The company received notification from Kennedy Engineering Co. that TechnoSmith's bid of $4,050 for an upcoming project was accepted. Nov. 18) The company received $3,200 cash from ABC Company as partial payment of the October 28 bill. Nov. 22) The company donated $300 cash to the United Way in the company's name. Nov. 24) The company completed work and sent a bill for $4,200 to Kennedy Engineering Co. Nov. 25) The company sent another bill to ABC Company for the past-due amount of $2,200. Nov. 28) The company reimbursed S. Smith in cash for business automobile mileage (1,200 miles at $0.32 per mile). Nov. 30) The company paid $2,100 cash for Grace Smith's wages for 14 days' work. Nov. 30) The company paid $2,800 cash in dividends. Increased equity - Revenue 4,200 No change in equity 0 No change in equity 0 No change in equity 0 Decreased equity - Expense (2,800) $ Total impact on equity What is the balance in the total equity as reported on the balance sheet? 90,500 90,500 $ Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on Equity General Journal Tab - For each transaction, prepare the required journal entry on the General Journal tab. List debits before credits. Each journal entry is automatically posted to the General Ledger. General Ledger Tab - To see the detail of all transactions that affect a specific account, or the balance in an account at a specific point in time, click on the General Ledger tab. Abnormal balances appear in parentheses. Click on any amount to see the underlying journal entry. Trial Balance Tab - A trial balance lists each account from the General Ledger, along with its balance, either a debit or a credit. Total debits should always equal total credits. If your trial balance doesn't balance, review your journal entries on the general journal tab. Income Statement Tab - Using the dropdown buttons, select the financial statement elements and account titles to be included on the income statement. The account balances will automatically populate. Statement of Retained earnings Tab - Using the dropdown buttons, select the item that accurately describes the values that either increase or decrease the owner's capital balance. Balance Sheet Tab - Using the dropdown buttons, select the financial statement elements and account titles to be included on the balance sheet. The account balances will automatically populate. Impact on Equity Tab - Using the dropdown buttons, indicate the impact each item has on total equity. Compare the total with the amount of equity reported on the balance sheet. Every journal entry must keep the accounting equation in balance. Prepare the journal entries for each of the transactions of TechnoSmith, entering the debits before the credits. Each transaction will automatically be posted to the General Ledger and the Trial Balance as soon as you click "Record Entry". If no journal entry is required, select "No journal entry required" in the first account field. Show less View transaction list View journal entry worksheet No Date Account Title Debit Credit 1 Oct 01 Cash Computer equipment Office equipment 48,000 20,100 10,000 Common stock 78,100 2 Oct 02 Prepaid rent 3,600 Cash 3,600 3 Oct 03 1,600 Computer supplies Accounts pavable 1.600 TECHNOSMITH Trial Balance November 30, 2018 Account Title Debit Credit Cash $ Accounts receivable 34,646 8,600 2,800 2,400 Computer supplies Prepaid insurance Prepaid rent Office equipment Computer equipment Common stock 3,600 10,000 20,100 78,100 Dividends 7,800 Computer services revenue 18,900 3,150 1,900 Wages expense Advertising expense Mileage expense Miscellaneous expenses 704 300 Donaire avnanca Comnutar 1 nnn TECHNOSMITH Statement of Retained Earnings For Two Months Ended November 30, 2018 Retained earnings, October 1, 2018 Add: Net income 11,846 11,846 11,846 Less: Dividends 7,800 7,800 4,046 Retained earnings, November 30, 2018 $ TECHNOSMITH Balance Sheet November 30, 2018 Assets: Cash Accounts receivable 34,646 8,600 2,800 2,400 Computer supplies Prepaid insurance Office equipment Prepaid rent Computer equipment 10,000 3,600 20,100 Total Assets $ 82,146 Liabilities: Accounts payable Total liabilities stelbeldama amit 78,100 0 0 Transaction Impact on Equity Oct. 1) S. Smith invested $48,000 cash, a $20,100 computer system, and $10,000 of office equipment in the company in Increased equity - Stockholder investment exchange for its common stock. Oct. 2) The company paid $3,600 cash for four months' rent. (The company's policy is to record prepaid expenses in balance No change in equity sheet accounts.) Oct. 3) The company purchased $1,600 of computer supplies No change in equity on credit from Masters Office Products. Oct. 5) The company paid $2,400 cash for one year's premium on a property and liability insurance policy. (The company's No change in equity policy is to record prepaid expenses in balance sheet accounts.) Oct. 6) The company billed Porter Leasing $4,900 for services Increased equity - Revenue performed in installing a new web server. Oct. 8) The company paid $1,600 cash for the computer No change in equity supplies purchased from Masters Office Products on October 3. O 4,900 0 0 1,600 Oct. 10) The company hired Grace Smith as a part-time No change in equity assistant for $150 per day, as needed. Oct. 12) The company billed Porter Leasing another $1,600 for services performed. Increased equity - Revenue Oct. 15) The company received $4,900 cash from Porter No change in equity Leasing as partial payment on its account. Oct. 17) The company paid $1,000 cash to repair computer Decreased equity - Expense equipment that was damaged when moving it. 0 $ (1,000) $ (1,000) (1,900) 0 5,400 0 (5,000) Oct. 17) The company paid $1,000 cash to repair computer Decreased equity - Expense equipment that was damaged when moving it. Oct. 20) The company paid $1,900 cash for advertisements Decreased equity - Expense published in the local newspaper. Oct. 22) The company received $1,600 cash from Porter No change in equity Leasing on its account. Oct. 28) The company billed ABC Company $5,400 for services performed. Increased equity - Revenue Oct. 31) The company paid $1,050 cash for Grace Smith's No change in equity wages for seven days' work. Oct. 31) The company paid $5,000 cash in dividends. Decreased equity - Dividends Nov. 1) The company reimbursed S. Smith in cash for business automobile mileage allowance (Smith logged 1,000 miles at No change in equity $0.32 per mile). Nov. 2) The company received $4,800 cash from Hayes Increased equity - Revenue Corporation for computer services performed. Nov. 5) The company purchased computer supplies for $1,200 No change in equity cash from Masters Office Products. Nov. 8) The company billed Kuhl Co. $2,200 for services Increased equity - Revenue performed Nov. 13) The company received notification from Kennedy Engineering Co. that TechnoSmith's bid of $4,050 for an No change in equity upcoming project was accepted. Nov. 18) The company received $3,200 cash from ABC No change in equity Company as partial payment of the October 28 bill. 0 4,800 0 2,200 0 0 No change in equity 0 No change in equity 0 No change in equity 0 Nov. 13) The company received notification from Kennedy Engineering Co. that TechnoSmith's bid of $4,050 for an upcoming project was accepted. Nov. 18) The company received $3,200 cash from ABC Company as partial payment of the October 28 bill. Nov. 22) The company donated $300 cash to the United Way in the company's name. Nov. 24) The company completed work and sent a bill for $4,200 to Kennedy Engineering Co. Nov. 25) The company sent another bill to ABC Company for the past-due amount of $2,200. Nov. 28) The company reimbursed S. Smith in cash for business automobile mileage (1,200 miles at $0.32 per mile). Nov. 30) The company paid $2,100 cash for Grace Smith's wages for 14 days' work. Nov. 30) The company paid $2,800 cash in dividends. Increased equity - Revenue 4,200 No change in equity 0 No change in equity 0 No change in equity 0 Decreased equity - Expense (2,800) $ Total impact on equity What is the balance in the total equity as reported on the balance sheet? 90,500 90,500 $