Chart of Accounts

Assets Revenue

1000 Cash

1020 Accounts Receivable

1025 Prepaid Rent

1030 Supplies

1080 Computer Shop Equipment

1081 Accum. Depr. C. S. Equip.

1090 Office Equipment

1091 Accum. Depr. Office Equip.

Liabilities

2000 Accounts Payable

Owners Equity

3000 T. Freedman, Capital

3010 T. Freedman, Withdrawals

3020 Income Summary

Revenue

4000 Service Revenue

Expenses

5010 Advertising Expense

5020 Rent Expense

5030 Utilities Expense

5040 Phone Expense

5050 Supplies Expense

5060 Insurance Expense

5070 Postage Expense

5080 Depr. Exp. C. S. Equip

5090 Depr. Exp. Office Equip.

The books have been closed for the first year of business for Sanchez Computer Center. The company ended up with a marginal profit for the first three months in operation. Tony expects faster growth as he enters a busy season.

Following is a list of transactions for the month of October, 201X. Petty Cash account #1010 and Miscellaneous Expense account #5100 have been added to the chart of accounts.

Oct. 1 Paid rent for November, December, and January, $1,200 (check no. 8108).

Oct. 2 Established a petty cash fund for $100.

Oct. 4 Collected $3,600 from a cash customer for building five systems.

Oct. 5 Collected $2,600, the amount due from A. Pitales invoice no. 12674, customer on account.

Oct. 6 Purchased $25 worth of stamps using petty cash voucher no. 101.

Oct. 7 Withdrew $2,000 (check no. 8109) for personal use.

Oct. 8 Purchased $22 worth of supplies using petty cash voucher no. 102.

Oct. 12 Paid the newspaper carrier $10 using petty cash voucher no. 103.

Oct. 16 Paid the amount due on the September phone bill, $65 (check no. 8110).

Oct. 17 Paid the amount due on the September electric bill, $95 (check no. 8111).

Oct. 22 Performed computer services for Taylor Golf; billed the client $4,200 (invoice no. 12675).

Oct. 23 Paid $20 for computer paper using petty cash voucher no. 104.

Oct. 30 Took $15 out of petty cash for lunch, voucher no. 105.

Oct. 31 Replenished the petty cash. Coin and currency in drawer total $8.

Because Tony was so busy trying to close his books, he forgot to reconcile his last three months of bank statements. A list of all deposits and checks written for the past three months (each entry is identified by chapter, transaction date, or transaction letter) and the bank statements for July through September are provided. The statement for October wont arrive until the first week of November.

Task

a. Record the transactions in general journal or petty cash format.

b. Post the transactions to the general ledger accounts.

c. Prepare a trial balance.

d. Compare the Computer Centers deposits and checks with the bank statements and complete a bank reconciliation as of September 30, 201X.

DEPOSITS

Chapter	Transaction	Payer/Payee	Amount
1	a	Tony Freedman	$4,500
1	f	Cash customer	250
1	i	Taylor Golf	1,200
1	g	Cash Customer	200
2	p	Cash Customer	900
3	Sept. 2	Tonya Parker Jones	325
3	Sept. 6	Summer Lipe	220
3	Sept. 12	Jeannine Sparks	850
3	Sept. 26	Mike Hammer	140

Checks

Chapter	Transaction	Check Number	Payor/Payee	Amount
1	b	8095	Multi Systems, Inc	$1,200
1	c	8096	Office Furniture, Inc	600
1	e	8097	Capital Management	400
1	j	8098	Tony Freedman	100
2	l	8099	Insurance Protection, Inc.	150
2	m	8100	Office Depot	200
2	n	8101	Computer Edge Magazine	1400
2	q	8102	San Diego Electric	85
2	r	8103	U.S. Postmaster	50
3	Sept. 1	8104	Capital Management	1200
3	Sept. 8	8105	Pacific Bell USA	15
3	Sept. 15	8106	Computer Connection	200

3

Sept. 16

8107

Multi Systems, Inc.

1200

Bank Statement

First Union Bank 322 Glen Ave. Escondido, CA 92025

Sanchez Computer Center Statement Date: July 22, 201X

Checks Paid:			Deposits and Credits:
Date paid	Number	Amount	Date received	Amount
7-4	8095	1,200.00	7-1	4,500.00
7-7	8096	600.00	7-10	250.00
7-15	8097	400.00	7-20	1,200.00
			7-21	200.00
Total 3 checks paid: $2,200.00			Total Deposits	$6,150.00
Ending balance on July 22: $3,950.00
Received statement: July 29, 201X.

First Union Bank 322 Glen Ave. Escondido, CA 92025

Sanchez Computer Center Statement Date: August 21, 201X

Checks Paid:			Deposits and Credits:
Date paid	Number	Amount	Date received	Amount
8-2	8098	$100	8-12	$900
8-3	8099	$150
8-10	8100	$200
8-15	8101	$1400
8-20	8101	$85
Total 3 checks paid $1935
Received statement: July 29, 201X.			Total Deposits	$900
Beginning balance on July 22: $3,950.00			Ending balance on August 21: $2,915.00

Received statement: August 27, 201X.