Assets L03, 4 (45 MIN) SANCHEZ COMPUTER CENTER The following problem continues from one chapter to the next, carrying the bal- ances of each month forward. Each chapter focuses on the learning experience of the chapter, adds information as the business grows and shows how critical the knowl- edge of accounting is to the performance of a business decision-maker. Assignment 1. Set up an expanded accounting equation spreadsheet using the following accounts: Liabilities Owner's Equity Cash Accounts Payable Freedman Capital Supplies Freedman, Withdrawal Computer Shop Service Revenue Equipment Expenses (notate type) Office Equipment 2. Analyze and record each transaction in the expanded accounting equation 3. Prepare the financial statements ending July 31 for Sanchez Computer Center On July 1, 201X, Tony Freedman decided to begin his own computer ser vice business. He named the business the Sanchez Computer Center. During the first month Tony conducted the following business transactions: 3 CHAPTER 1 Accounting Concepts and Procedures a. Invested $4,500 of his savings into the business. b. Paid $1,200 (check #8095) for the computer from Multi Systems, Inc. & Paid $600 (check #8096) for office equipment from Office Furniture, Inc. d. Set up a new account with Office Depot and purchased $250 in office supplies on credit. e Paid July rent, $400 (check #8097). 6. Repaired a system for a customer and collected $250. 9. Collected $200 for system upgrade labor charge from a customer. h. Electric bill due but unpaid, 585. Collected $1,200 for services performed on Taylor Golf computers. Withdrew $100 (check #8098) to take his wife, Carol, out in celebration of opening the new business. i. ON the JOB 1111111111 My Accountinglab LO2, 3, 4 (60 MIN) 1020 SANCHEZ COMPUTER CENTER The Sanchex Computer Center created its chart of accounts as follows: Chart of Accounts as of July 1, 2018 Assets Revenge 1000 Cath 4000 Service Tevenue Accounts Receivable Expenses 1030 Supplies 5010 Advertising Expense 1080 Computer Shop Equipment 5020 Kent Expense 1090 Oflice Equipment 5030 Urities Expense Liabilities 5040 Phone pense 2000 Accounts Payable 5050 Supplies Expense Owner's Equity 5060 Insurance Expense 3000 Freeman Capital 5070 Postage Espere 3010 Treen, Withdrawala You will use this chart of accounts to complete the Continuing Problem. The following problem continues from Chapter 1. The balances as of July 31 have been brought forward in the working papers that accompany this text. Assignment 1. Set up accounts in a ledger 2. Record transactions k throughs in the appropriate accounts. 3. Foot and take the balances of the accounts where appropriate. 4. Prepare a trial balance at the end of August, 5. Prepare from the trial balance an income statement statement of ownict's equity, and a balance sheet for the two months ending with August 31, 201X. & Received the phone bill for the month of July, SISS. Paid S150 (check W8099) for insurance for the month . Paid $200 (check #8100) of the amount due from transaction din Chapter I. .. Paid advertising expense for the month, 51,400 (check #8101). .. Billed a client deannine Sparks) for services rendered, S850, . Collected $900 for services rendered, Paid the electric bill in full for the month of July (check #8102, transaction , Chapter 1). Paid cach (check X103) for $50 in stamps 1. Purchased $200 worth of supplies from Computer Connection on credit
