On October 1, 2020, Santana Rey launched a computer services company, Business Solutions, that is organized as a corporation and provides consulting services, computer system installations, and custom program development.

Required

Create a table like Exhibit 1.9 using these headings: Cash; Accounts Receivable; Computer Supplies; Computer System; Office Equipment; Accounts Payable; Common Stock; Dividends; Revenues; and Expenses. Use additions and subtractions within the table to show the dollar effects for each of the following transactions 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 in exchange for its common stock.

3 The company purchased $1,420 of computer supplies on credit.

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 on credit on October 3.

10 The company hired a part-time assistant.

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 its computer equipment.

20 The company paid $1,728 cash for advertisements published on Facebook.

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 the assistant’s wages for this month.

31 The company paid $3,600 cash in dividends to the owner (sole shareholder).