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Aster Systems -October 2020 On October 1, 2020, Aster Turane organized a computer service company called Aster Systems. Aster is organized as a sole
Aster Systems -October 2020 On October 1, 2020, Aster Turane organized a computer service company called Aster Systems. Aster is organized as a sole proprietorship and will provide consulting services, computer system installations, and custom program development. Aster Systems has adopted the calendar year for reporting, and expects to prepare the company's first set of financial statements as of December 31, 2020. The initial chart of accounts for the accounting system includes these items: Account Number Account Name Account Number Account Name 101 Cash 301 Aster Turane, Capital 106 Accounts Receivable 302 Aster Turane, Withdrawals 126 Computer Supplies 403 Computer Services Revenue 128 Prepaid Insurance 623 Wages Expense 131 Prepaid Rent 655 Advertising Expense 163 Office Equipment 676 Mileage Expense 167 Computer Equipment 684 Repairs Expense, Computer 201 Accounts Payable 699 Charitable Donations Expense Part A Required 1. Prepare journal entries to record each of the following October transactions. 2. Post the October entries in the Ledger as the account number given above 3. Prepare a trial balance at October 31, 2020. 4. Prepare an income statement and a statement of changes in equity for the month ended October 31, 2020, as well as a balance sheet at October 31, 2020.
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