Home Insert Page Layout Formulas Data Review View * Cut Arial 10 General to copy te Wrap Text Merge & Center $ - % 9 Format Painter Clipboard Font Alignment Number N10 f A B D E F CUMULATIVE PROBLEM - Smart Computer Service 301 302 This comprehensive problem starts in this chapter and continues in Chapters 3, 4, and 5 On October 1, 2017, Smart Computer Service organized a computer service company called Smart Computer Service Systems Smart Computer Serviceis organized as a sole proprietorship and will provide consulting services, computer system installations, and custom program development. Smart Computer Service has adopted the calendar year for reporting, and expects to prepare the company's first set of financial statements as of December 31, 2017. The initial chart of accounts for the accounting system includes these items: 0 Account Account 11 Number Account Name Number Account Name 12 101 Cash Smart Computer Service, Capital 13 106 Accounts Receivable Smart Computer Service, Withdrawals 14 126 Computer Supplies 403 Computer Services Revenue 15 128 Prepaid Insurance 623 Wages Expense 16 131 Prepaid Rent 655 Advertising Expense 17 163 Office Equipment 676 Mileage Expense 18 167 Computer Equipment 684 Repairs Expense, Computer 19 201 Accounts Payable 699 Charitable Donations Expense 20 21 Part A 22 Required 23 1. Prepare journal entries to record each of the following October transactions 24 25 Oct 1 Smart Computer Service invested $32,000 cash, a $5,040 computer system, and 26 $12.000 of office equipment in the business 27 2 Paid six months of rent in advance: $9 300 9 3 Purchased amidar sunnas onrrarit for $1975 from Trino.Ona Sunnies Ch2 - Aster Systems Ready e 14 126 Computer Supplies 403 Computer Services Revenue 15 128 Prepaid Insurance 623 Wages Expense 16 131 Prepaid Rent 655 Advertising Expense 17 163 Office Equipment 676 Mileage Expense 18 167 Computer Equipment 684 Repairs Expense, Computer 19 201 Accounts Payable 699 Charitable Donations Expense 20 21 Part A 22 Required 23 1. Prepare journal entries to record each of the following October transactions. 24 25 Oct. 1 Smart Computer Service invested $32,000 cash, a $5,040 computer system, and 26 $12,000 of office equipment in the business. 27 2 Paid six months of rent in advance: $9,300. 28 3 Purchased computer supplies on credit for $1,975 from Triple-One Supplies 29 5 Paid $8,640 cash for one year's premium on a property and liability insurance 30 policy 31 6 Billed Norton Electric 55,300 for installing a new computer system. 32 8 Paid for the computer supplies purchased from Triple-One Supplies. 33 10 Hired Donald Gee as a part-time assistant for $345 per day, as needed. 34 12 Billed Norton Electric another 51 850 for computer services rendered. 35 15 Received $1,650 from Norton Electric on its account. 36 17 Paid $375 to repair equipment damaged when moving into the 37 new office 38 20 Paid $1,950 for an advertisement in the local newspaper 39 22 Received the balance owing from Norton Electric on its account. 40 28 Billed Whistler Resort $6,400 for services 41 31 Paid Donald Gee for nine days' work. 42 31 Smart Computer Service withdrew $ 1.200 cash from the business for personal use. Ch2 - Aster Systems 42 Ready e w