CUMULATIVE PROBLEM - Calder Systems This comprehensive problem starts in this chapter and continues in Chapters 3, 4, and 5. On October 1, 2020, Calder Willis organized a computer service company called Calder Systems. Calder is organized as a sole proprietorship and will provide consulting services, computer system installations, and custom program development. Willis 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 Number Account Name 101 Cash 106 Accounts Receivable 126 Computer Supplies 128 Prepaid Insurance 131 Prepaid Rent 163 Office Equipment 167 Computer Equipment 201 Accounts Payable Account Number Account Name 301 Calder Willis, Capital 302 Calder Willis, 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 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 Calder Willis invested $42,000 cash, a used computer system valued at $5,700, and $10,500 of office equipment in the business. 2 Paid six months of rent in advance; $14,700. 3 Purchased computer supplies on credit for $2,490 from Sweeny Stationary. 5 Paid $7,080 cash for one year's premium on a property and liability insurance policy 6 Billed ECOF Millwork $3,430 for installing a new computer system and providing ECOF Millwork's employees with training. 8 Paid for the computer supplies purchased from Sweeny Stationary. 10 Hired Justin Ng as a part-time assistant for $350 per day, as needed. 12 Billed ECOF Millwork another $1,105 for computer services rendered. 15 Received $1,500 from ECOF Millwork on its account. 17 Paid $315 to repair equipment damaged when moving into the new office. 20 Paid $2,090 for an advertisement in the local newspaper. 22 Received the balance owing from ECOF Millwork on its account. 28 Billed Northern Lights Co. $3,430 for services. 31 Paid Justin Ng for 15 days' work. 31 Calder Willis withdrew $1,400 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 Calder Willis's business automobile expense for 2,800 kilometres at $1.80 per kilometre. 2 Received $9,700 cash from Aspen Investments for computer services completed today. 5 Purchased $1,400 of computer supplies for cash from Sweeny Stationary. 8 Billed Plummer's Catering Services $2,360 for computer services rendered. 13 Notified by Dunlop Clothing Company that Calder's bid of $8,000 for an upcoming project was accepted. 18 Received $500 from Northern Lights Co. against the bill dated October 28. 22 Donated $1,700 to the United Way in the company's name. 24 Completed work for Dunlop Clothing Company and sent a bill for the amount agreed to on November 13. 25 Sent another bill to Northern Lights Co. for the past due amount of $2,930. 28 Reimbursed Calder Willis's business automobile expense for 880 kilometres at $1.80 per kilometre. 30 Paid Justin Ng for 20 days' work. 30 Calder Willis withdrew $1,400 cash from the business for personal use