On October 1, 2017, Aster Turane organized a computer service company called Aster Systems.

Aster is organized as a sole proprietorship and will provide consulting services, computer system

installations and custom program development.Aster 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 transactions for October November and December are listed below.

The initial chart of accounts for the accounting system includes these items:

Account Number

Account Name

Account Number

Account Name

101

Cash

301

Aster Turane, Capital

106

Accounts Receivable

302

Aster Turane, Withdrawals

126

Computer Supplies

403

Computer Services Revenue

128

Prepaid Insurance

612

Depr'n Expense - Office Equip.

131

Prepaid Rent

613

Depr'n Expense - Computer

163

Office Equipment

623

Wages Expense

164

Accum. Depr'n - Office Equipment

637

Insurance Expense

167

Computer Equipment

640

Rent Expense

168

Accum. Depr'n - ComputerEquipment

652

Computer Supplies Expense

201

Accounts Payable

655

Advertising Expense

210

Wages Payable

676

Mileage Expense

236

Unearned Computer Services Revenue

684

Repairs Expense, Computer

699

Charitable Donations Expense

Oct.1

Aster Turane invested $32,000 cash, a $5,040 computer system, and

$12,000 of office equipment in the business.

2

Paid six months of rent in advance; 9,300.

3

Purchased computer supplies on credit for $1,975 from Triple-One Supplies.

5

Paid $8,640 cash for one year's premium on a property and liability insurance

policy.

6

Billed Norton Electric $3,300 for installing a new computer system.

8

Paid for the computer supplies purchased from Triple-One Supplies.

10

Hired Donald Gee as a part-time assistant for $345 per day, as needed.

12

Billed Norton Electric another $1,850 for computer services rendered.

15

Received $1,650 from Norton Electric on its account.

17

Paid $375 to repair equipment damaged when moving into the

new office.

20

Paid $1,950 for an advertisement in the local newspaper.

Oct.22

Received the balance owing from Norton Electric on its account.

28

Billed Whistler Resort $6,400 for services.

31

Paid Donald Gee for nine days' work.

31

Aster Turane withdrew $1,200 cash from the business for personal use.

Nov.1

Reimbursed Aster Turane's business automobile expense for 2,630

kilometres at $1.60 per kilometre.

2

Received $7,920 cash from Langara Lodge for computer services rendered.

5

Purchased $420 of computer supplies for cash from Triple-One Supplies.

8

Billed Dinwoody Entertainment $4,230 for computer services rendered.

13

Notified by Kinsetta Groceries that Aster's bid of $5,950 for an

upcoming project was accepted.

18

Received $4,200 from Whistler Resort against the bill dated October 28.

22

Donated $500 to the Hope Mission in the company's name.

24

Completed work for Kinsetta Groceries and sent a bill for the agreed amount.

25

Sent another bill to Whistler Resort for the past due amount of $2,200.

28

Reimbursed Aster Turane's business automobile expense for 1,080

kilometres at $1.60 per kilometre.

30

Paid Donald Gee for 17 days' work.

30

Aster Turane withdrew $1,400 cash from the business for personal use.

Dec. 3

Paid $3,800 to the Kingsway Garden Mall for the company's share of mall

advertising costs for December.

3

Paid $1,040 to repair the company's computer.

4

Received the balance owing from Kinsetta Groceries.

10

Paid Donald Gee for eight days' work at the rate of $345 per day.

14

Notified by Kinsetta Groceries that Aster's bid of $6,500 on a proposed

project was accepted.Kinsetta paid an advance of $3,000.

17

Purchased $740 of computer supplies on credit from Triple-One

Supplies.

18

Sent a reminder to Dinwoody Entertainment to pay the $4,230 originally

recorded on November 8.

20

Completed a project for Langara Lodge and received $1,100 cash.

24-28

Took the week off for the holidays.

31

Received $1,800 as partial payment from Dinwoody Entertainment.

31

Reimbursed Aster Turane's business automobile expenses of 1,800 kilometres

at $1.60 per kilometre.

31

Aster Turane withdrew $800 cash from the business.

Required:

1.Prepare journal entries to record the transactions for October, November and December.

Post these entries to the general ledger accounts.

Requirement #1 is due October 31/18.

2.Prepare adjusting entries to record the following additional information collected on

December 31, 2017.Post the entries to the accounts in the ledger.

Dec. 31

a. The December 31 inventory of computer supplies was $480.

b. Three months have passed since the annual insurance premium was paid.

c.As of the end of the year, Donald Gee has not been paid for four days of

work at the rate of $345 per day.

d.The computer equipment is expected to have a five-year life with no

residual value.

e.The office equipment is expected to have a ten-year life with no

residual value.

f.Prepaid rent for three of the six months has expired.

3.Prepare an adjusted trial balance as of December 31, 2017.

4.Prepare an income statement and statement of changes in equity for the three months

ended December 31, 2017.

Check figure: Net loss = ($8,858.00)

5.Prepare a balance sheet as of December 31, 2017.