On October 1, 2017, Santana Rey launched a computer services company, Business Solutions that is organized as a proprietorship and provides consulting services, computer system installations, and custom program development. Rey adopts the calendar year for reporting purposes and expects to prepare the company's first set of financial statements on December 31, 2017.

Required

Create a table like the one in Exhibit 1.9 using the following headings for columns: Cash; Accounts Receivable; Computer Supplies; Computer System; Office Equipment; Accounts Payable; S. Rey, Capital; S. Rey, Withdrawals; Revenues; and Expenses. Then use additions and subtractions within the table to show the dollar effects for each of the following October transactions for Business Solutions on the individual items of the accounting equation. Show new balances after each transaction.

Oct. 1 S. Rey invested $45,000 cash, a $20,000 computer system, and $8,000 of office equipment in the company.

3 The company purchased $1,420 of computer supplies on credit from Harris Office Products.

6 The company billed Easy Leasing $4,800 for services performed in installing a new web server.

8 The company paid $1,420 cash for the computer supplies purchased from Harris Office Products on October 3.

10 The company hired Lyn Addie as a part-time assistant for $125 per day, as needed.

12 The company billed Easy Leasing another $1,400 for services performed.

15 The company received $4,800 cash from Easy Leasing as partial payment toward its account.

17 The company paid $805 cash to repair computer equipment damaged when moving it.

20 The company paid $1,728 cash for advertisements published in the local newspaper.

22 The company received $1,400 cash from Easy Leasing toward its account.

28 The company billed IFM Company $5,208 for services performed.

31 The company paid $875 cash for Lyn Addie's wages for seven days of work this month.

31 S. Rey withdrew $3,600 cash from the company for personal use.

Exhibit 1.9

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= Llabilitles Assets Equity + C. Taylor, Capital - C. Taylor, Withdrawals + Accounts Recelvable + Supplies + Equipment + Revenues Cash = Accounts Payable Expenses (1) $30,000 $30,000 + $2,500 + 2,500 (2) - 2,500 Bal. 27,500 30,000 + $26,000 + 26,000 (3) -26,000 30,000 Bal. 1,500 2,500 + 7,100 + 9,600 = +$7,100 (4) 7,100 Bal. 1,500 26,000 30,000 + $4,200 (5) + 4,200 4,200 Bal. 5,700 9,600 26,000 7,100 30,000 $1,000 (6) 1,000 9,600 7,100 30,000 Bal. 4,700 26,000 4,200 1,000 (7) 700 700 26,000 1,700 Bal. 4,000 9,600 7,100 30,000 4,200 + $1,900 1,600 (8) 300 4,000 + Bal. 1,900 9,600 26,000 7,100 30,000 6,100 1,700 1,900 (9) + 1,900 5,900 + 26,000 6,100 1,700 Bal. 9,600 7,100 30,000 (10) 900 900 9,600 Bal. 5,000 + 26,000 6,200 30,000 6,100 1,700 $200 (11) Bal. $ 4,800 + $ 200 $ 6,200 $ 1,700 + $9,600 + $ 26,000 + $ 30,000 + $6,100 $200