On October 1, 2020, Santana Rey launched a computer services company called Business Solutions, which provides consulting services, computer system installations, and custom program development. The company’s initial chart of accounts follows.

Required

1. Prepare journal entries to record each of the following transactions for Business Solutions. 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 common stock.

2 The company paid $3,300 cash for four months’ rent. Hint: Debit Prepaid Rent for $3,300.

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

5 The company paid $2,220 cash for one year’s premium on a property and liability insurance policy. Hint: Debit Prepaid Insurance for $2,220.

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.

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 on its account.

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

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

22 The company received $1,400 cash from Easy Leasing on 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’ work.

31 The company paid a $3,600 cash dividend.

Nov. 1 The company paid $320 cash for mileage expenses.
2 The company received $4,633 cash from Liu Corporation for computer services performed.

5 The company purchased computer supplies for $1,125 cash from Harris Office Products.
8 The company billed Gomez Co. $5,668 for services performed.

13 The company agreed to perform future services for Alex’s Engineering Co. No work has yet been performed.

18 The company received $2,208 cash from IFM Company as partial payment of the October 28 bill.

22 The company paid $250 cash for miscellaneous expenses. Hint: Debit Miscellaneous Expenses for $250.

24 The company completed work and sent a bill for $3,950 to Alex’s Engineering Co.

25 The company sent another bill to IFM Company for the past-due amount of $3,000.

28 The company paid $384 cash for mileage expenses.

30 The company paid $1,750 cash for Lyn Addie’s wages for 14 days’ work.

30 The company paid a $2,000 cash dividend.

2. Open ledger accounts (in balance column format) and post the journal entries from part 1 to them.

3. Prepare a trial balance as of the end of November.

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Account No. Account No. Cash..... 101 Common Stock... 307 Accounts Receivable 106 Dividends ...... 319 Computer Supplies.. 126 Computer Services Revenue . 403 Prepaid Insurance. 128 Wages Expense . 623 Prepaid Rent.. 131 Advertising Expense. 655 Office Equipment 163 Mileage Expense . 676 ... Computer Equipment. 167 Miscellaneous Expenses 677 Accounts Payable ... 201 Repairs Expense-Computer.. 684