On Dec 1, 2017, Daniel Nica organized a computer service company called Smart Technology

Systems. Smart Technology is organized as a sole proprietorship and will provide consulting services, computer

system installations and custom program development. Smart Technology Systems 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:

Account Number Account Name Account Number Account Name

101 Cash 403 Computer Services Revenue

106 Accounts Receivable 623 Subcontractor Expense

126 Computer Supplies 655 Advertising Expense

131 Prepaid Rent 676 Mileage Expense

163 Office Equipment 681 Rent Expense

167 Computer Equipment 684 Repairs Expense

201 Accounts Payable

301 Daniel Nica, Capital

Required

1. Prepare journal entries to record each of the following October transactions.

2. Post the December entries to the ledgers.

3. Prepare a trial balance at Dec 31, 2017.

4. Prepare an income statement and a statement of changes in equity for the month ended

Dec 31, 2014,

5. Prepare a balance sheet at Dec 31, 2017.

Dec. 1 Daniel Nica invested $82,000 cash, a $7,000 computer equipment, and

$11,000 of office equipment in the business.

2 Paid three months of rent in cash in advance; $9,000.

3 Purchased computer supplies on credit for $2,000 from Compute depot Supplies.

6 Billed Maher Electric $9,300 for installing a new computer system.

7 Reimbursed Daniel Nica's business automobile expense for 1,000

kilometres at $1.80 per kilometre.

12 Billed Maher Electric another $28,000 for computer services rendered.

15 Received $6,300 from Maher Electric on its account.

17 Paid $400 in cash to repair equipment damaged when moving into the

new office.

20 Paid $1,500 in cash for an advertisement in the local newspaper.

22 Rece