Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

CUMULATIVE PROBLEM - Aster Systems On October 1, 2017, Aster Turane organized a computer service company called Aster Systems. Aster is organized as a sole

image text in transcribed
image text in transcribed
image text in transcribed
CUMULATIVE PROBLEM - Aster Systems On October 1, 2017, 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 Oct. 31, 2017. The initial chart of accounts for the accounting system includes these items 106 Account Account Name Number 101 Cash Accounts Receivable 126 Computer Supplies 128 Prepaid Insurance 131 Prepaid Rent 163 Office Equipment 167 Computer Equipment 170 Accumulated Depreciation 201 Accounts Payable 301 Aster Turane, Capital Account Account Name Number 302 Aster Turane, Withdrawals 403 Computer Services Revenue 623 Wages Expense 625 Rent Expense 626 Insurance Expense 655 Advertising Expense 676 Mileage Expense 684 Repairs Expense, Computer 698 Depreciation Expense 699 Charitable Donations Expense Required Please anwser all MCO based on the following business transactions. Please do all adjustment entries before you anwer your MCQ questions The expected useful life of computer system and office equipment are 3 years There is no residual value for all equipments Please use the straight-line method for the depreciation. Oct. 1 Aster Turane invested $42,000 cash, a $14.400 computer system, and $3,600 of office equipment in the business. 2 Paid six months of rent in advance: $12,000. 3 Purchased computer supplies on credit for $1,975 from Triple-One Supplies 5 Paid $8,640 cash for one year's premium on a property and liability insurance policy 6 Billed Norton Electric $6,300 for installing a new computer system. 8 Paid for the computer supplies purchased from Triple-One Supplies 10 Hired Donald Gee as a part-time assistant for $345 per day, as needed. 12 Billed Norton Electric another $1,850 for computer services rendered. 15 Received $1.650 from Norton Electric on its account 17 Paid $375 to repair equipment damaged when moving into the new office 20 Paid $1,950 for an advertisement in the local newspaper. 22 Received the balance owing from Norton Electric on its account. 28 Billed Whistler Resort $9.400 for services. 31 Paid Donald Gee for nine days' work. 31 Aster Turane withdrew $1.200 cash from the business for personal use. Quiz 3-12-ADJDversion 7 1 of 17 00:03 / 01:30:00 ili What is the net value of the office equimpent account at the month end? 3600 3300 3400 3500 Next > How much is the advertising expense is this month? 1850 1900 1800 1950 Next

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Application Of Quantitative Techniques For The Prediction Of Bank Acquisition Targets

Authors: Pasiouras Fotios

1st Edition

9812565183, 9789812565181

More Books

Students also viewed these Accounting questions

Question

What is the weight of a 1-kilogram brick resting on a table?

Answered: 1 week ago

Question

What does it mean when the explanatory variables are collinear?

Answered: 1 week ago

Question

List the five steps in the message-sending process.

Answered: 1 week ago

Question

List and explain the four steps in the communication process.

Answered: 1 week ago

Question

Describe how communication flows through organizations.

Answered: 1 week ago