CUMULATIVE COMPREHENSION PROBLEM: ECHO SYSTE (This comprehensive problem starts in this chapter and continues in Chapters 3, 4, and 5. Because of On October 1, 2020, Mary Graham organized a computer service company called Echo Systems. Ech ized as a sole proprietorship and will provide consulting services, computer system installations, program development. Graham has adopted the calendar year for reporting, and expects to prepare pany's first set of financial statements as of December 31, 2020. The initial chart of accounts for the this problem is most easily solved if you use the Working Papers that accompany this text.) ing system includes these items: Account Number Account Name Account Number Account Name 101 106 126 128 131 163 167 201 Cash Accounts Receivable Computer Supplies Prepaid Insurance Prepaid Rent Office Equipment Computer Equipment Accounts Payable 301 302 403 623 655 676 684 699 Mary Graham, Capital Mary Graham, Withdrawals Computer Services Revenue Wages Expense Advertising Expense Mileage Expense Repairs Expense, Computer Charitable Donations Expense Part B: Required 7. Post the November entries. 8. Prepare a trial balance at November 30, 2020. 9. Prepare an income statement and a statement of changes in equity for the two months ended November 30, 2020, as well as a balance sheet at November 30, 2020. Nov. 1 2 5 8 13 Reimbursed Graham's business automobile expense for 1.000 kilometres at $1.00 per kilometre Received $9,300 cash from Elite Corporation for computer Services rendered. Purchased $1,920 of computer supplies for cash from Abbott Office Products Billed Fostek Co. $8,700 for computer services rendered. Notified by Alamo Engineering Co. that Echo's bid of $7,500 for an upcoming project was accepted Received $3.750 from Decker Company against the bill dated October 28. Donated $1,500 to the United Way in the company's name. Completed work for Alamo Engineering Co. and sent a bill for $7,500. Sent another bill to Decker Company for the past due amount of $2,700. 18 22 24 25 28 30 Reimbursed Graham's business automobile expense for 1.200 kilometres at $1.00 per kilometre. Paid Carly Smith for 14 days' work. Withdrew $3.600 cash from the business for personal use. 30 CHECK FIGURES: 8. Total Dr. $184.950: 9. Profit $27.920: Total assets = $161120 6. Prepare journal entries to record each of the following November transactions CUMULATIVE COMPREHENSION PROBLEM: ECHO SYSTE (This comprehensive problem starts in this chapter and continues in Chapters 3, 4, and 5. Because of On October 1, 2020, Mary Graham organized a computer service company called Echo Systems. Ech ized as a sole proprietorship and will provide consulting services, computer system installations, program development. Graham has adopted the calendar year for reporting, and expects to prepare pany's first set of financial statements as of December 31, 2020. The initial chart of accounts for the this problem is most easily solved if you use the Working Papers that accompany this text.) ing system includes these items: Account Number Account Name Account Number Account Name 101 106 126 128 131 163 167 201 Cash Accounts Receivable Computer Supplies Prepaid Insurance Prepaid Rent Office Equipment Computer Equipment Accounts Payable 301 302 403 623 655 676 684 699 Mary Graham, Capital Mary Graham, Withdrawals Computer Services Revenue Wages Expense Advertising Expense Mileage Expense Repairs Expense, Computer Charitable Donations Expense Part B: Required 7. Post the November entries. 8. Prepare a trial balance at November 30, 2020. 9. Prepare an income statement and a statement of changes in equity for the two months ended November 30, 2020, as well as a balance sheet at November 30, 2020. Nov. 1 2 5 8 13 Reimbursed Graham's business automobile expense for 1.000 kilometres at $1.00 per kilometre Received $9,300 cash from Elite Corporation for computer Services rendered. Purchased $1,920 of computer supplies for cash from Abbott Office Products Billed Fostek Co. $8,700 for computer services rendered. Notified by Alamo Engineering Co. that Echo's bid of $7,500 for an upcoming project was accepted Received $3.750 from Decker Company against the bill dated October 28. Donated $1,500 to the United Way in the company's name. Completed work for Alamo Engineering Co. and sent a bill for $7,500. Sent another bill to Decker Company for the past due amount of $2,700. 18 22 24 25 28 30 Reimbursed Graham's business automobile expense for 1.200 kilometres at $1.00 per kilometre. Paid Carly Smith for 14 days' work. Withdrew $3.600 cash from the business for personal use. 30 CHECK FIGURES: 8. Total Dr. $184.950: 9. Profit $27.920: Total assets = $161120 6. Prepare journal entries to record each of the following November transactions
