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just step 2 Serial Problem Business Solutions LO A1, P1, P2 On October 2017. Santana Rey launched a computer services company called Business Solutions, which
just step 2
Serial Problem Business Solutions LO A1, P1, P2 On October 2017. Santana Rey launched a computer services company called Business Solutions, which provides consulting services computer system installations and custom program development Rey adopts the calendar year for reporting purposes and expects to prepare the company's first set of financial statements on December 31, 2017. The company's initial chart of accounts follows Account Cash Accounts Receivable Computer Supplies Prepaid Insurance Prepaid Rent Office Equipent Computer Equipment Accounts Payable NO Account No. 101 Common Stock 307 106 Dividends 319 126 Computer Services Revenue 43 128 wages Expense 623 131 Advertising Expense 655 163 Mileage Expense 167 Miscellaneous Expenses 201 Repairs Expense-Computer 664 oct. 1 5. Rey invested 545,000 cash, - $20,000 computer system, and $8,000 of office equipment in the company in exchange for its common stock. 2. The company paid $3,300 cash for four months rent. (Hint: Debit Prepaid Rent for $3,300.) 3 The company purchased $1,420 of computer supplies on credit from Harris Office Products 5 The company paid $2,220 cash for one year's premium on a property and liability insurance policy. (Hint: Debit Prepaid Insurance for $2,220.) 6 The company billed Easy Leasing 54,800 for services performed in installing a new web server. 8 The company paid $1,420 cash for the computer supplies purchased from Harris Office Products on October 3 10 The company hired Lyn Addie as a part-time assistant for $125 per day, as needed. 12 The company billed Easy Leasing another $1,400 for services performed 15 The company received 54,300 cash from Easy Leasing as partial payment on its account. 17 The company paid $ses cash to repair computer equipment that was damaged when moving it. 20 The company paid $1,728 cash for advertisements published in the local newspaper 22 The company received $1,400 cash from Easy Leasing on its account. 28 The company billed IFM Company $5,208 for services performed 31 The company paid $875 cash for Lyn Addie's wages for seven days' work. 31 The company paid $3,600 cash in dividends. Nov. 1 The company reimbursed S. Rey in cash for business automobile mileage allowance (Rey logged 1,000 wiles at $0.32 per sile). 2 The company received $4,633 cash from Liu Corporation for computer services performed The company purchased computer supplies for $1,125 cash from Harris Office Products. 8 The company billed Gomez Co. $5,668 for services performed 13 The company received notification from Alex's Engineering Co. that Business Solutions's bid of $3,950 for an upcoming project was accepted. 18 The company received $2,208 cash from IFN Company as partial payment of the October 23 bill. 22 The company donated $250 cash to the United way in the company's name 24 The company completed work and sent bill for $3,950 to Alex's Engineering Co. 25 The company sent another bill to IFM Company for the past de amount of $3,000 28 The company reimbursed 5. Rey in cash for business automobile sileage (1,200 miles at 50.32 per wile). 30 The company paid $1,750 cash for Lyn Addie's wages for 14 days' work. 30 The company paid $2,000 cash in dividends. Required: 1. Prepare journal entries to record each of the above transactions for Business Solutions 2. Prepare ledger accounts in balance column format) and post the journal entries from requirement to them. 3. Prepare a trial balance as of the end of November Step by Step Solution
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