On October 1, 2021, Mike Arnold launched a computer services company called Arnold Computing, which provides consulting services, computer system installations, and custom program development. Arnold adopts the calendar year for reporting purposes and expects to prepare the company's first set of financial statements on December 31, 2021. Using the following transactions, record journal entries, create financial statements, and assess the impact of each transaction on the financial statements. October 1 M. Arnold invested $102,000 cash, a $21,900 computer system, and $14,000 of office equipment in the company. October 2 The company paid $4,800 cash for four months' rent. (The company's policy is to record prepaid expenses in balance sheet accounts.) October 3 The company purchased $2,400 of computer supplies on credit from Potter Office Products. October 5 The company paid $2,400 cash for one year's premium on a property and liability insurance policy. (The company's policy is to record prepaid expenses in balance sheet accounts.) October 6 The company billed Clark Leasing $6,700 for services performed in installing a new web server. October 8 The company paid $2,400 cash for the computer supplies purchased from Potter Office Products on October 3. October 10 The company hired Ronnie Arnold as a part-time assistant. October 12 The company billed Clark Leasing another $5,200 for services performed. October 15 The company received $6,700 cash from Clark Leasing as partial payment on its account. October 17 The company paid $1,400 cash to repair computer equipment that was damaged when moving it. October 20 The company paid $2,300 cash for advertisements published in the local newspaper. October 22 The company received $5,200 cash from Clark Leasing on its account. October 28 The company billed ABC Company $5,800 for services performed. October 31 The company paid $1,050 cash for Ronnie Arnold's wages for seven days' work. October 31 M. Arnold withdrew $8,000 cash from the company for personal use. November 1 The company reimbursed M. Arnold in cash for business automobile mileage allowance (Arnold logged 1,000. miles at $0.32 per mile). November 2 The company received $5,200 cash from Hughes Corporation for computer services performed.. November 5 The company purchased computer supplies for $1,900 cash from Potter Office Products. November 8 The company billed Porter Company $2,300 for services performed. November 13 The company agreed to perform future services for Green Engineering Company. No work has yet been performed. November 18 The company received $3,500 cash from ABC Company as partial payment of the October 28 bill. November 22 The company paid $600 cash for miscellaneous expenses. Hint: Debit Miscellaneous Expense for $600. November 24 The company completed work for Green Engineering Company and sent it a bill for $6,000. November 25 The company sent another bill to ABC Company for the past-due amount of $2,300. November 28 The company reimbursed M. Arnold in cash for business automobile mileage (1,200 miles St $0.32 per mile). November 30 The company paid $2,100 cash for Ronnie Arnold's wages for 14 days' work. November 30 M. Arnold withdrew $3,300 cash from the company for personal use. Requirement View transaction list General Journal < Journal entry worksheet 1 Every journal entry must keep the accounting equation in balance. Prepare the journal entries for each of the transactions of Arnold Computing, 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. General Ledger 2 Date October 01 3 4 Note: Enter debits before credits. Record entry Trial Balance 5 Account Title Income Statement Statement Owners Equity 6 October 1) M. Arnold invested $102,000 cash, a $21,900 computer system, and $14,000 of office equipment in the company. Clear entry 7 8 27 Debit Balance Sheet Credit Impact on Equity View general journal Show less A Requirement General Journal Total General Ledger Trial Balance Account Title Income Statement Statement Owners Equity The trial balance is a listing of all account balances from the General Ledger as of a specific date. Click on any individual account balance to return to the General Ledger. The trial balance is only as accurate as the underlying journal entries. If the total debits do not equal the total credits, you there is journal entry that is out of balance. If you have an abnormal ending balance (indicated with brackets in the general ledger), you should review the journal entries that affected that account to ensure that the journal entries are correct. < General Ledger Arnold Computing Trial Balance November 30, 2021 Balance Sheet Income Statement > Impact on Equity Debit OS Show less A Credit 0 Requirement General Journal General Ledger Trial Balance Arnold Computing Income Statement. For Two Months Ended November 30 Income Statement < Trial Balance Statement Owners Equity Balance Sheet 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. Impact on Equity Statement Owners Equity > Requirement General Journal General Ledger M. Arnold, Capital, October 1 Trial Balance Arnold Computing Statement of Owner's Equity For Two Months Ended November 30 M. Arnold, Capital, November 30 Using the dropdown buttons, select the item that accurately describes the values that either increase or decrease the owner's capital balance. $ Income Statement Income Statement 0 Statement Owners Equity $ Balance Sheet 0 Impact on Equity Balance Sheet > Requirement General Journal General Ledger Accounts payable Trial Balance Arnold Computing Balance Sheet November 30 Income Statement Statement Owners Equity 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. Statement Owners Equity 0 $ Balance Sheet 0 Impact on Equity Impact on Equity > Requirement General Journal General Ledger Trial Balance Transaction October 1) M. Amold invested $102,000 cash, a $21,900 computer system, and $14,000 of office equipment in the company October 2) The company paid $4,800 cash for four months rent. (The company's policy is to record prepaid expenses in balance sheet accounts.) October 3) The company purchased $2,400 of computer supplies on credit from Potter Office Products. October 5) The company paid $2,400 cash for one year's premium on a property and liability insurance policy. (The company's policy is to record prepaid expenses in balance sheet accounts.) While the balance sheet reports the detail of individual assets and liabilities, owner's equity is reported in total. The expanded accounting equation shows the four subsets of equity: Revenues, Expenses, Owner Investments and Owner withdrawals. Using the dropdown buttons, indicate the impact each transaction has on total equity (if any). Compare the total with the amount of equity reported on the balance sheet. October 6) The company billed Clark Leasing $6,700 for services performed in installing a new web server. October 8) The company paid $2,400 cash for the computer supplies purchased from Potter Office Products on October 3. October 10) The company hired Ronnie Amold as a part-time assistant. October 12) The company billed Clark Leasing another $5,200 for services performed. October 15) The company received $6,700 cash from Clark Leasing as partial payment on its account. October 17) The company paid $1,400 cash to repair computer equipment that was damaged when moving it. October 20) The company paid $2,300 cash for advertisements published in the local newspaper. Income Statement October 22) The company received $5,200 cash from Clark Leasing on its account. Statement Owners Equity Balance Sheet Impact on Equity Impact on Equity Show less A October 28) The company billed ABC Company $5,800 for services performed. October 31) The company paid $1,050 cash for Ronnie Arnold's wages for seven days' work. October 31) M. Amold withdrew $8,000 cash from the company for personal use. November 1) The company reimbursed M. Arnold in cash for business automobile mileage allowance (Arnold logged 1,000 miles at $0.32 per mile). November 2) The company received $5,200 cash from Hughes Corporation for computer services performed. November 5) The company purchased computer supplies for $1,900 cash from Potter Office Products. November 8) The company billed Porter Company $2,300 for services performed. November 13) The company agreed to perform future services for Green Engineering Company. No work has yet been performed. November 18) The company received $3,500 cash from ABC Company as partial payment of the October 28 bill. November 22) The company paid $600 cash for miscellaneous expenses. Hint: Debit Miscellaneous Expense for $600. November 24) The company completed work for Green Engineering Company and sent it a bill for $6,000. November 25) The company sent another bill to ABC Company for the past-due amount of $2,300. November 28) The company reimbursed M. Amold in cash for business automobile mileage (1,200 miles at $0.32 per mile). November 30) The company paid $2,100 cash for Ronnie Arnold's wages for 14 days' work. November 30) M. Amold withdrew $3,300 cash from the company for personal use. Total impact on equity