The books have been closed for the first year of business for Sanchez Computer Center. The company ended up with a marginal profit for the first three months in operation. Tony expects faster growth as he enters a busy season.
Following is a list of transactions for the month of October. Petty Cash account #1010 and Miscellaneous Expense account #5100 have been added to the chart of accounts.
Oct. 1 Paid rent for November, December, and January, $1,200 (check no. 8108).
2 Established a petty cash fund for $100.
4 Collected $3,600 from a cash customer for building five systems.
5 Collected $2,600, the amount due from A. Pitale€™s invoice no. 12674, customer on account.
6 Purchased $25 worth of stamps using petty cash voucher no. 101.
7 Withdrew $2,000 (check no. 8109) for personal use.
8 Purchased $22 worth of supplies using petty cash voucher no. 102.
12 Paid the newspaper carrier $10 using petty cash voucher no. 103.
16 Paid the amount due on the September phone bill, $65 (check no. 8110).
17 Paid the amount due on the September electric bill, $95 (check no. 8111).
22 Performed computer services for Taylor Golf; billed the client $4,200 (invoice no. 12675).
23 Paid $20 for computer paper using petty cash voucher no. 104.
30 Took $15 out of petty cash for lunch, voucher no. 105.
31 Replenished the petty cash. Coin and currency in drawer total $8.
Because Tony was so busy trying to close his books, he forgot to reconcile his last three months of bank statements. A list of all deposits and checks written for the past three months (each entry is identified by chapter, transaction date, or transaction letter) and the bank statements for July through September are provided. The statement for October won€™t arrive until the first week of November.
Assignment
1. Record the transactions in general journal or petty cash format.
2. Post the transactions to the general ledger accounts.
3. Prepare a trial balance.
4. Compare the Computer Center€™s deposits and checks with the bank statements and complete a bank reconciliation as of September 30, 201X.
Sanchez Computer Center Summary of Deposits and Checks

Received statement July 29, 201X.

Received statement September 29,201X.

Chapter Transaction Payor/Payee Amount Deposits Tony Freedman $4,500 250 1,200 Cash customer Taylor Golf Cash customer Cash customer Sept. 2 Sept. 6 Sept. 12 Sept. 26 900 325 220 850 140 Amount Tonva Parker Jones Summer Lipe Jeannine Sparks Mike Hammer Chapter Transaction Check # Payor/Payee Checks Multi Systems, Inc. Office Furniture, Inc. Capital Management Tony Freedman Insurance Protection, Inc. Office Depot Computer Edge Magazine San Diego Electric U.S. Postmaster Capital Management Pacific Bell USA Computer Connection Multi Systems, Inc. $1,200 8095 8096 8097 8098 8099 8100 8101 8102 8103 8104 8105 8106 8107 600 100 150 200 1,400 85 50 1,200 155 200 1,200 Sept. 1 Sept. 8 Sept. 15 Sept. 16 Bank Statement First Union Bank 322 Glen Ave. Escondido, CA 92025 Sanchez Computer Center Statement Date: July 22, 201)x Checks Paid: Deposits and Credits Number 8095 8096 8097 Date paid Amount Date received 1,200.00 7-1 Amount 4,500.00 250.00 1,200.00 200.00 $6,150.00 600.00 7-10 400.00 7-20 7-21 7-15 Total 3 checks paid for $2,200.00 Ending balance on July 22-$3,950.00 Total Deposits Bank Statement First Union Bank 322 Glen Ave. Escondido, CA 92025 Sanchez Computer Center Statement Date: August 21, 201x Checks Paid: Date paid 8-2 8-3 8-10 8-15 8-20 Total 5 checks paid for $1,935.00 Beginning balance on July 22-$3,950.00 Received statement August 27, 201 Bank Statement Deposits and Credits: Date received 8-12 Number 8098 8099 8100 8101 8102 Amount 100.00 150.00 200.00 1,400.00 85.00 Amount 900.00 Total Deposits Ending balance on August 21-$2,915.00 900.00 First Union Bank 322 Glen Ave. Escondido, CA 92025 Sanchez Computer Center Statement Date: September 20, 201x Checks Paid: Date paid 9-2 9-6 9-12 Total 3 checks paid for $1,405.00 Beginning balance on August 21 $2,915.00 Deposits and Credits Date received Number 8103 8104 8105 Amount Amount 325.00 220.00 850.00 $1,395.00 50.00 9-4 1,200.00 9-7 155.00 9-14 Total Deposits Ending balance on September 20 $2,905.00