CUMULATIVE PROBLEM - Ballister Systems On October 1, 2020, Ballister Dorth organized a computer service company called Ballister Systems. Ballister is organized as a sole proprietorship and will provide consulting services, computer system installations, and custom program development. Dorth 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: 126 Account Account Name Number 101 Cash 106 Accounts Receivable Computer Supplies 128 Prepaid Insurance 131 Prepaid Rent 163 Office Equipment 167 Computer Equipment Accounts Payable Account Account Name Number 301 Ballister Dorth, Capital 302 Ballister Dorth, Withdrawals 403 Computer Services Revenue 623 Wages Expense 655 Advertising Expense 676 Mileage Expense 684 Repairs Expense, Computer 699 Charitable Donations Expense 201 Part A Required 1. Set up balance column accounts based on the chart of accounts provided. 2. Prepare journal entries to record each of the following October transactions 3. Post the October entries. 4. Prepare a trial balance at October 31, 2020 5. 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. Oct. 1 Ballister Dorth invested $40,000 cash, a used computer system valued at $4,080, and $13,020 of office equipment in the business. 2 Paid six months of rent in advance: $13,500. 3 Purchased computer supplies on credit for $3,745 from Staples Supplies. 5 Paid $12,240 cash for one year's premium on a property and liability insurance policy 6 Billed Stilton Manufacturing $7,050 for installing a new computer system and providing Stilton's employees with training. 8 Paid for the computer supplies purchased from Staples Supplies. 10 Hired Trish Duresh as a part-time assistant for $310 per day, as needed. 12 Billed Stilton Manufacturing another $1,345 for computer services rendered. 15 Received $2,500 from Stilton Manufacturing on its account. 17 Paid $980 to repair equipment damaged when moving into the new office. 20 Paid $1,330 for an advertisement in the local newspaper. 22 Received the balance owing from Stilton Manufacturing on its account. 28 Billed Maritime Inc. $10,340 for services. 31 Paid Trish Duresh for 15 days' work. 31 Ballister Dorth withdrew $2,500 cash from the business for personal use