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: Account Account Name Number 101 Cash 106 Accounts Receivable 126 Computer Supplies 128 Prepaid Insurance 131 Prepaid Rent 163 Office Equipment 167 Computer Equipment 201 Accounts Payable Account Account Name Number 301 Banister Dorth, Capital 302 Balister Dorth, Withdrawals 403 Computer Services Revenue 623 Wages Expense 655 Advertising Expense 676 Mileage Expense 684 Repairs Expense, Computer 699 Charitable Donations Expense Part A Required 1. Set up balance column accounts based on the chart of accounts provided 2. Prepare journal entries to record cach 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 540,000 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 Biled Sulton Manufacturing $7,050 for installing a new computer system and providing Sto'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 Son Manufacturing another 51,345 for computer services rendered 15 Received $2.500 from Stion Manufacturing on its account 17 Pad 5000 to repair equipment damaged when moving into the now office 20 Paid $1.330 for an advertisement in the local newspaper 22 Received the balance owing from Ston Manufacturing on its account 28 Bed Maritime Inc. $10.340 for services 31 Paid Trish Dures for 15 days' work 31 Ballister Dorth withdrew $2,500 cash from the business for personal use Part B Required 6. Prepare journal entries to record each of the following November transactions 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 Reimbursed Balister Dorth's business automobile expense for 740 kilometres at $2.05 per kilometre. 2 Received $4,970 cash from Langara Lodge for computer services completed today 5 Purchased $1,684 of computer supplies for cash from Staples Supplies. 8 Billed Blackfeather Adventures $3,990 for computer services rendered. 13 Notified by Everest Entertainment that Ballister's bid of $7.450 for an upcoming project was accepted. 18 Received $4,000 from Maritime Inc, against the bill dated October 28 22 Donated $1,500 to World Vision in the company's name. 24 Completed work for Everest Entertainment and sent a bill for the agreed amount. 25 Sent another bill to Maritime Inc. for the past due amount of $6,340. 28 Reimbursed Ballister Dorth's business automobile expense for 1.220 kilometres at $2.05 per kilometre. 30 Paid Trish Duresh for 22 days' work. 30 Ballister Dorth withdrew $2,500 cash from the business for personal use
